Tesla (TSLA) is reportedly looking to raise almost $800 million from a debt sale backed by its auto leases.
Bloomberg reported the move, which Tesla is reportedly premarketing the debt sale to the market right now:
The deal, being run by Societe Generale, would be the electric-vehicle maker’s second transaction of the year and is expected to price next week, according to a person familiar with the matter who asked to be identified as they’re not authorized to speak publicly. March’s $750 million deal had a 5.53% coupon on its top tranche.
As interest rates started to go down this year, automotive asset-backed security (ABS) deals have picked up.
Ford just did a $1.7 billion ABS deal and Tesla did one earlier this year.
As of its latest reported quarter (Q2 2024), Tesla had over $4.2 billion in ABS notes:
Tesla is also sitting on $30 billion in cash, cash equivalent, and short-term investments at the end of last quarter