Investors seem to be showing interest in Tesla’s upcoming debt offering, reported Bloomberg.

The electric car maker’s record level of cash burn so far does not seem to be scaring off bond buyers — after a meeting with them on Monday, CEO Elon Musk had orders for just over a third of the $1.5 billion the company plans to offer, the news service said, citing investors who had been briefed on the matter.

The offering is aimed at raising to money to fund Telsa expansion into the mass auto market with its Model 3 sedan.

The recently announced move could bode well for Tesla, which may pay yields of no more than 5 percent on the bonds. At that rate, and with interest rates still low, many debt buyers may be considering Tesla to be a more attractive investment, Bloomberg said.

Investors also seem to be overlooking the nearly $1.2 billion in cash Tesla burned in the second quarter.

Tesla has repeatedly returned to the markets since its initial public offering in 2010, leading to concern that further equity offerings would dilute the value of its shares.

Tesla was not immediately available for comment to CNBC.

Read the full story at Bloomberg.

Source: Tech CNBC
Tesla reportedly seeing strong demand for its junk-rated debt