Investors are demanding record amounts to hold Tesla debt as the company's profit woes mount

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Tesla's junk bonds reached a record premium after the company reported another quarterly loss on Wednesday night.

and signaled it may be in the market for more capital soon.

The price on Tesla's 5.3% note due August 2025 slipped, nudging its yield to the highest in about six months at 8.51% in European trading. Its spread, the measure of the premium in yield investors demand for the added risk of holding a bond from Tesla - rated six notches below investment grade by Standard & Poor's and Moody's - rather than a safer U.S. Treasury security, widened by 3 basis points to a record 618 basis points.

By comparison, the spread on an average high-yield bond is 373 basis points, according to ICE BAML Index data, and for comparably rated"B-" issuers it is 402 basis points.

 

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