Hello and welcome to the Monday January 29th

2018 edition of Tesla Daily on Official Tesla Podcast.

My name is Rob Maower.

Today we are talking about Tesla Tapping Into the Bond Market again,

as well as a new highest-vin citing for Model 3.

Tesla stock on Friday closed up 1.54% to $342.85, this compared to the NASDAQ up 1.28%.

On the week, Tesla closed down 2.51%, compared to the NASDAQ up 2.27%. Supercharger network update, we are currently

at 1,146 supercharging locations, with two new stations opening up, one in Japan and one in Canada.

Over the weekend, the Financial Times reported that Tesla is seeking to raise capital

with the issuance of a $546 million bond backed by customer lease payments on Model S.

Because Tesla leases some of their vehicles,

that means that they aren't actually receiving the cash for the sale of those vehicles up front

because they receive the cash over time

through the payments on the lease.

The issuance of this bond would allow

Tesla to have capital now up front and use those lease payments over time to secure the bond.

This is what's known as an asset-back security or ABS, which Wikipedia defines as, quote,

a security whose income payments and hence value are derived from and collateralized

by a specific pool of underlying assets.

In this case, that would be the leases.

Continuing with a quote, the pool of assets is typically a group of small and illiquid assets

which are unable to be sold individually.

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