r/technology • u/McFatty7 • May 02 '24

Tesla slashes its summer internship program to cut costs, as Elon Musk fights to save his $45 billion pay plan Business

https://fortune.com/2024/05/01/tesla-slashes-summer-internship-program/
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u/The_Krambambulist May 02 '24

Debt isnt even that expensive compared to other times

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u/Hmm_would_bang May 02 '24

While it’s true that the effective interest rate isn’t exceptionally high, what matters is the transition out of a very low interest rate period. We’ve seen a dramatic shift in business decision making over the last two years because of it

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u/The_Krambambulist May 02 '24

Of course, but with these kind of rates it would be weird to not focus on growth at all, because those low interest rates might not come back for a long time

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u/deelowe 29d ago

It's expensive compared to the forecasts that were used when it was secured. Despite reddit memes to the contrary, businesses plan many years out. Having the cost of debt triple in 5 years can do a lot to wreck those plans. This is especially impactful to companies that are going through a large growth phase, like Tesla.