Tesla Feels the Bond Market Love

Tesla Feels the Bond Market Love

Assessment

Interactive Video

Business

University

Hard

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Tesla has successfully tapped into the bond market, raising funds without significant premium costs. This move helps avoid shareholder dilution and diversifies Tesla's capital sources. The timing is strategic, given the positive buzz around the Model 3. However, questions remain about Tesla's future cash strategies and whether they will return to equity markets. The company faces challenges in ramping up Model 3 production, with ambitious targets and ongoing validation testing. Early reviews are positive, but the market is keenly watching Tesla's ability to meet production goals.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the outcome of Tesla's recent bond deal?

The deal was canceled due to low demand.

The deal was upsized due to high demand.

The deal was postponed to a later date.

The deal resulted in significant equity dilution.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is Tesla's move to the bond market significant?

It decreases Tesla's market value.

It limits Tesla's access to future capital.

It increases Tesla's debt significantly.

It allows Tesla to avoid equity dilution.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential future financial strategy for Tesla?

Focusing only on short-term loans.

Avoiding any form of external financing.

Continuing to use high yield debt.

Relying solely on equity markets.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is Tesla's production target for the Model 3 by December?

7000 cars per week

5000 cars per week

3000 cars per week

1000 cars per week

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been the general reception of the Model 3 so far?

Negative reviews

Mixed reviews

No reviews yet

Positive reviews