Tesla’s junk bond issue is already trading underwater

Just one week after Tesla Inc.’s much-ballyhooed $1.8 billion bond issue and the notes are trading underwater, leading some to question the pricing of the deal.

The 5.3% notes due 2025 last traded at 97.50 cents on the dollar, according to MarketAxess, after touching a low of 97.375 cents during Friday’s session.

The high-yields bonds were reported to have attracted strong demand, with the underwriter Goldman Sachs increasing the size from an original $1.5 billion. Investors appeared to find comfort in Tesla’s TSLA, -1.27% market capitalization of $57.9 billion, which makes it the nation’s biggest car company measured by that metric.

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