Tesla has not been this much more volatile than Nasdaq in almost five years (seven times more volatile) as Elon Musk’s recent mocking of the SEC has sparked yet more selling this morning – back near its lowest since April…
And shares are tumbling once again following questions this weekend about Tesla’s safety record…
…and questions also loom about Fox Business News’ Charlie Gasparino’s “scoop” over the weekend that the company was being inundated with offers to refinance, including a possible $5 billion senior secured note. Tesla followers on social media spent some of the weekend trying to analyze how such a deal if it were to occur, could be structured.
SCOOP: Bankers are inundating @Tesla w refinancing ideas as two major bond repayments near; one idea floated with be to raise about $5b in new senior secured debt to make payment etc on the notion the $TSLA battery brand and car are worth at least $10b in a worst-case bankruptcy
— Charles Gasparino (@CGasparino) October 6, 2018
Additionally, the bond market has not offered any clarity on the situation, as it is closed for the Columbus Day holiday.
For now, David Einhorn is winning after he minced no words in his latest letter to investors, comparing Elon’s baby to Lehman Brothers.
We present the full excerpt below:
