REUTERS: Tesla Inc's US$1.8 billion junk bond price fell by the most in seven months and the cost to insure its debt against default surged on Thursday after a bigger-than-expected drop in first-quarter deliveries.
The electric vehicle maker's 5.3per cent senior unsecured note due in August 2025 fell 2.17 cents to a bid price of 85.2 cents on the dollar, with its yield rising nearly half a percentage point to 8.34per cent in active European trading. It was the largest price drop since September.The bond's yield spread, the measure of additional compensation demanded by investors to own the security rather than safe-haven U.S. Treasuries, widened by 50 basis points.
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