0 Answers: What does "prices of Tesla bonds issued in August plunged to all-time low last week" mean?
‘does that mean Tesla is only capable of receiving loans is deceasing? ‘
That makes no sense.
A falling bond price means there are fewer buyers for bonds – which were sold by the company – on the secondary market. More people want to sell them than there are buyers for them. This means that buyers are not willing to take the risk of owning them – they see a greater risk of the company defaulting on the interest payments. They see the company as having a greater chance of failing and filing for bankruptcy, which could make those bonds worthless.
Going forward, continued weakness in the secondary market will mean that Tesla will have a much harder time raising capital through a sale of additional bonds.