Tesla's battered bonds rally after company says it doesn't need to raise more money this year

Tesla Inc. TSLA, -0.64% bonds rallied on Tuesday, after the Silicon Valley car maker reported first-quarter production and delivery numbers that missed expectations, but said it would not need to raise more money this year. The 5.300% bonds that mature in August of 2025 tightened as much as 50 basis points at their best level, according to trading platform MarketAxess. The high-yield, or junk, bonds have been clobbered in the past week amid concerns about the fallout from a fatal accident involving a Model X, the company's liquidity position, a recall of Model S vehicles and a potential production miss. The notes fell below 90 cents on the dollar on March 27 and were last quoted at 88.25 cents to yield 7.397%, or at a yield spread of 462 basis points over Treasurys.