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Junk bonds issued by Elon Musk's electric-car maker hit their lowest price ever on Tuesday morning.
The company's $920 million worth of bonds set to come due on March 1 will be the company's largest debt payment ever.
The stock has surged by more than 13% this week following Tesla's earnings report on Wednesday that showed a slower cash burn.
Insurance on Tesla bonds — sold as credit default swap contracts — hit a record high on Tuesday. The price of insurance $100 of debt hit $6.58 as new fears swirled about the company's financial situation.
There’s growing concern over Tesla’s finances — and Wall Street is convinced the company will need to raise money soon
With the company in a state of "production hell" to hit production goals for the newest Model 3 sedan, analysts and investors are grappling with the very real possibility that Tesla could soon go bankrupt.
"Between its current operations, anticipated new product spend, and incremental capacity additions, we see Tesla potentially requiring over $10bn in external capital raises and debt re-financing by 2020," analyst David Tamberrino said in a note to clients Thursday.
The company lost $4 per share on its most recent earnings report.