Tesla's 2025 5.3% bonds hit a price of $86.50 Tuesday, Sept. 4. The bonds had been trending downward, hovering at around $87 in the later days of August.
In addition, Goldman Sachs downgraded the stock, slapping a sell recommendation on the stock and a $210 price target.
Shares ended the day down 4.21% to $288.95.
Goldman analyst David Tamberrino wrote "We see the medium-to-longer term industry backdrop as challenging for Tesla's products; this follows from an increasing number of EV launches from both traditional OEMs and other start-up competitors -- at a time when the company's product cadence hits a gap." In short, rising competition in the electric vehicle space, coupled with the fact that Tesla doesn't have a new car coming out until 2020, is making Goldman bearish.
Tesla's net debt, or its debt minus cash, has risen each quarter this year. "With looming maturities on convertible debt, we believe the company would likely need to come back to the capital markets in first-half 2019," the Goldman note added.
The company has been burning through money as it ramps up its Model 3 production. However, Tesla CEO Elon Musk has insisted he won't need to raise cash in spite of looming debt payments.
Many credit analysts say another debt raise would be credit negative.
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