NEW YORK (Reuters) – Tesla’s (TSLA.O) 5-year credit default swap TSLA5YUSAX=MG hit its highest price ever on Friday, the morning after it was announced that the Securities and Exchange Commission was suing the company’s Chief Executive Elon Musk and pushing for his ouster.
A newly installed car charger at a Tesla Super Charging station is shown in Carlsbad, California, U.S. September 14, 2018. REUTERS/Mike Blake
It cost $299.1 to insure $1 million of the electric carmaker’s debt. That suggests credit investors are becoming increasingly concerned about the prospect of a default.
Reporting by Kate Duguid