Description: Tesla debt may have gotten a junk bond rating from Standard and Poor due to concerns about its ‘niche’ market status. But investors in Tesla stock still have faith in Elon Musk.

Source: CNNMoney.com – video report

Date: May 28, 2014

Link: http://money.cnn.com/video/investing/2014/05/28/n-tesla-electric-cars-elon-musk-bonds.cnnmoney/index.html

Questions for Discussions:

• Explain the differences in thinking by Tesla bond and equity holders about the company and risk perceptions?
• Do you think Tesla bonds rank as “junk”?