Tesla’s junk bonds sink to their lowest level yet below 85 cents on the dollar

Tesla Inc.’s high-yield bonds fell to a fresh record low on Friday, as investors digested the news that the company’s chief accounting officer has quit. The 5.300% notes that mature in August of 2025 fell to 84.999 cents on the dollar, according to trading platform MarketAxess, to yield 8.178%. On a spread basis, the bonds were trading at 527 basis points over Treasurys, 36 basis points wider on the day. The bonds have fallen along with the stock amid concerns about the erratic behavior of Chief Executive Elon Musk. In the latest move stirring controversy, Musk appeared to smoke marijuana during an interview on “The Joe Rogan Experience” podcast late Thursday. Shares were down 5.1% premarket and have fallen 9.8% in 2018, while the S&P 500 has gained 7.7%.

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