Tesla’s $1.8 billion high-yield bond is trading at its full face value for the first time since the electric-vehicle maker issued the debt in 2017.

Tesla Inc.’s $1.8 billion high-yield bond is trading at its full face value for the first time since the electric-vehicle maker issued the debt in 2017.

Crossing the 100-cents-on-the-dollar mark is a symbolic victory for the company because the bond has traded poorly for years and hit a low of 81 cents on the dollar in May, according to data from MarketAxess.

The...