Thursday, 19 October, 2017

Amber Heard And Elon Musk Release Joint Statement Addressing Their Breakup

Tesla-Model-3 Tesla's stocks slumps subsequent to Elon Musk's warnings about manufacturing issues
Theresa Hayes | 13 August, 2017, 10:51

Ashlee Vance shared the anecdote in his biography of Musk, titled "Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future.".

However, as Tesla's quarterly earnings performance shows, it may finally be time for TSLA stock bears to set Musk's irritable inaccuracies aside and re-examine their stance on the company. While Tesla workers have talked of unionization before, the increased strain of "production hell" may add new urgency to that debate, the website reports.

Musk told analysts that the Model Y's production plan will be a step apart from what Tesla - or the rest of the industry - is now doing. Before any of those vehicles arrive, however, Tesla will be concentrating on getting 500,000 Model 3 saloons to eager customers. They were asked about the status of their relationship at the time, but said nothing with Musk telling reporters about his love of Nutella-filled pastries instead.

Production hell just got a little more manageable after Friday's bond sale.

Morgan Stanley; Barclays Capital; Merrill Lynch, Pierce, Fenner & Smith; Citigroup Global Markets; Deutsche Bank Securities; and RBC Capital Markets were the other underwriters. By selling bonds now, Musk can raise cash for Model 3 production without diluting equity holders.

Meanwhile, the company is burning cash at a rapid rate. The electric auto maker finalized terms for the first-ever sale of high-yield bonds today, and increased the size of the offering.

"If you think about the "early adopter" concept, the same may apply to this bond for certain investors", said Jon Duensing, director of investment-grade credit at Amundi Pioneer, which oversees $82.4 billion.

"His analysis came after Tesla announced on its website that it will be offering "$1.5 billion in aggregate principal amount of its senior notes due 2025".

The Bloomberg Barclays High Yield Index closed at a five-week high of 5.71% on Thursday, amid escalating tension in the Korean Peninsula.

"The issuer will use the net proceeds from this offering to further strengthen its balance sheet during a period of rapid scaling with the launch of Model 3, and for general corporate purposes", Tesla said in the debt offering term sheet.