Tesla Uses Auto Leases To Back $783M Debt Sale: Report

Tesla Inc. TSLA is gearing up for a $783 million debt sale, coinciding with a busy October that features the highly anticipated Robotaxi Day.

What Happened: Tesla, which recently reported third-quarter delivery and production figures, could price its debt sale as early as next week.

The debt sale, which is being run by Societe Generale, would see Tesla provide the backing of prime borrowers' car leases, as reported by Bloomberg.

According to the report, this would mark Tesla’s second financing this year. Tesla raised $750 million in March.

By leveraging its car leases, Tesla would join other automakers in using asset-backed securities as a tool to finance future growth.

Tesla has previously used asset-backed securities for funding, but not as much as its U.S. automotive rivals, the report said.

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What's Next: The financing news follows Tesla’s third-quarter delivery figures and comes ahead of several key October catalysts, which could lead to significant volatility in the company’s stock.

Tesla will host its Robotaxi Day on Oct. 10 and report third-quarter financial results on Oct. 23, which mark two of the biggest company events in the last three months of the calendar year.

The company will also exhibit multiple models, including the Cybertruck, at the Paris Auto Show from Oct. 14 to Oct. 20. This marks Tesla's first appearance at the auto show in six years.

TSLA Price Action: Tesla stock was down 4% to $238.26 on Thursday, compared to a 52-week trading range of $138.80 to $271.00. It is down 4.1% year-to-date in 2024.

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Image created using artificial intelligence via Midjourney.