Tesla Said To Delay $1B Bond Sale Backed By EV Leases: Market Jitters Behind The Move?

Tesla Inc TSLA has delayed bond offerings of more than $1 billion backed by its electric vehicle leases, Bloomberg News reported on Wednesday, citing people with knowledge of the matter.

What Happened: The Elon Musk-led EV maker is the third company in a week to have pulled asset-backed bond deals in the past week, following similar moves from buy now, pay later firm Affirm Holdings Inc AFRM and auto-finance company World Omni, according to the report.

Bankers for Tesla had placed a significant portion of the bonds with fund managers before the halt, Bloomberg reported.

Tesla did not respond to Benzinga’s request for comment outside business hours.

Why It Matters: Short-term interest rates have spiked amid rising inflation and concerns over the economic fallout from Russia’s war in Ukraine. 

Issuers have taken a cautious stand, and are pausing their financing plans until markets have calmed, the report said.

Price Action: Tesla stock closed 4.8% higher at $840.23 a share on Wednesday.