Tech Stocks

After Stock Split, Tesla's Share-Sale Plans Boost Bonds

Tesla’s stock has more than tripled since the start of the year, giving it a market capitalization larger than many behemoths of American industry. But its rise wasn’t necessarily driven by fundamentals. WSJ explains. Illustration: Jacob Reynolds/WSJ

The latest beneficiaries of Tesla’s surging shares: bondholders.

Prices for Tesla Inc.’s traditional bond due in 2025 reached a record 104.36 cents on the dollar Tuesday, according to MarketAxess, after the electric-car maker said it would sell up to $5 billion in stock, bolstering its balance sheet after a 5-for-1 stock split Monday.


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