Finance: Tesla slides following news the company is offering $1.5 billion of junk bonds (TSLA)

Tesla's stock price hasn't been affected by a ton of new debt Tesla wants to take on to help produce the Model 3.

Shares of Tesla are down 0.39% at $355.53 a piece after the company announced on Monday it will be issue bonds to raise $1.5 billion.

After the announcement, Standard & Poor's gave the bonds a B- rating, putting them in the high-risk junk bond category. Moody's assigned a similar B3 rating to the bonds.

"We could lower our ratings on Tesla if execution issues related to the Model 3 launch later this year or the ongoing expansion of its Models S and X production lead to significant cost overruns," S&P said in a statement.

According to Bank of America Merrill Lynch, the standard interest rate for a bond like Tesla's would be 5.5%, but factors like the lack of a long credit history and the "green" nature of the company could affect the rate.

Tesla is going into "production hell" as it begins to produce its first mass-market vehicle, the Model 3, according to CEO Elon Musk.

Right now, the company is burning through its cash faster than ever, and only has three quarters of runway left if it continues at its current rate, according to hedge fund manager David Einhorn.

Shares of Tesla are up 65.59% this year.

Watch Tesla's share price move in real time...

from pulse.ng - Nigeria's entertainment & lifestyle platform online