Tesla investor day was kind of a dull affair. The “big news” is the new Gigafactory being built in Mexico. I miss the old days when Elon would announce the ugliest car anyone has ever seen and then accidentally smash its windows.

The lowdown

• 🏭 Tesla investor day confirms new Gigafactory in Mexico but does not announce next generation vehicles.

• 💸 Adani tells bondholders it has access to a $3 billion line of credit from sovereign wealth fund.

• 📈 Under pressure from activists, Salesforce tops earnings expectations and provides strong guidance.

Flex your finance muscle

Hung bonds and bridges

On Tuesday, we discussed Oaktree’s announcement to raise a $10 billion fund for leveraged buyouts. Why are private lenders moving into a space traditionally occupied by the big Wall Street Banks?

The answer is hung bonds and bridges. Both refer to situations where the underwriter or lender is unable to sell the debt instruments to new investors, leaving them "hung" or unsold.

In the case of hung bonds, the underwriter may be unable to sell the bonds to investors due to insufficient demand or pricing that is perceived as too high. Hung bridges are loans that the lender is unable to sell to another party, leaving them stuck with the loan on their balance sheet for a longer period than they had planned. Private lenders typically hold debt instruments for years rather than months and so are better suited to taking on these debts in the current environment of rising rates.

Featured stories

Revolut releases its accounts

Revolut has finally released its long-delayed 2021 accounts. The company reported its first profit in 2021 of £26 million, driven by the boom in crypto trading.

It was not all good news though. Revolut's auditor BDO was unable to independently verify 75% of the £636 million in revenue reported by the company. BDO flagged concerns that verification procedures were not able to "provide sufficient appropriate assurance" over revenue from subscriptions, cards, foreign exchange, and wealth activities.

"There is not any doubt over the completeness of the balance sheet, which, in turn, logically means that total revenue is also correct," said Chief Financial Officer Mikko Salovaara.

This is not strictly true, but the assurance over the balance sheet means that at a minimum the company’s cash exists, which is more than can be said for other “winners” of the crypto boom.

The content we're consuming today

• The Verge on YouTube: Tesla Master Plan 3 in 4 minutes.

• CoinDesk: Former Accounting Team of FTX US Auditor Armanino Sets Up Shop as The Network Firm.

• FT: Blackstone fund keeps limits on outflows as redemption requests fall.

Off-balance sheet items

• The Obsessions: Wild Chocolate podcast is a pretty incredible story about the search for wild cacao plants in the rainforest and has made me seriously consider spending $55 plus shipping on 120 grams of chocolate.

The bottom line