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Tesla Halts Bond Sale Backed by Auto Leases Amid Market Turmoil

  • It’s the third pulled asset-backed bond deal in the past week
  • Portions of the deal had already been sold to investors
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WATCH: Tesla Inc. raised prices on all its vehicles after CEO Elon Musk said costs were increasing. Bloomberg’s Ed Ludlow reports.Source: Bloomberg

Tesla Inc. delayed a more than $1 billion offering of bonds backed by leases on its electric vehicles, the third issuer in the past week to halt a sale amid market turbulence, according to people with knowledge of the matter.

Bankers for the auto manufacturer had already placed a significant portion of the bonds with fund managers before marketing was halted, said the people, who asked not to be identified because the offering is private. Surging inflation and worries over the economic fallout from Russia’s war in Ukraine have sent short-term interest rate benchmarks sharply higher in recent weeks. That’s prompting issuers to pause their financing plans until markets have calmed.