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Quite a few of the "investment" rounds for companies have terms which look like loans more than ownership as well. It can get rather fuzzy distinguishing one from the other.

Yeah this was just a loan. The first time for them that it wasn't attached in some way to shares.

Not only that it is unsecured "junk" debt, and the interest rate is incredibly low at 5.3%.

5.3% is not incredibly low for a corporation borrowing 1.8 billion. it is pretty high which is why investors are jumping on it.

This adds $95 million in interest expense per year which is pretty substantial.

It is incredibly low for bonds in the "junk" trough. For companies with Tesla's credit rating, you're typically looking at 6.5-7.8%. If you're GE, you're of course going to pay a lot less, but GE has a much more robust credit history.

"Raises" could be a debt or equity event. If you're selling portions of a company (equity) you would call it a "raise" but you're not "borrowing."