SHARE THIS ARTICLE

Tesla Inc.’s credit rating was downgraded by Moody’s Investors Service on Tuesday as the electric car company burns through cash, fails to meet production expectations and may soon have to raise more than $2 billion.

Moody’s cut Tesla’s overall rating to B3, or six levels below investment grade, from B2 and said its outlook on the company is negative. Tesla’s $1.8 billion of senior unsecured notes, issued in August, were downgraded to Caa1, seven steps into junk, from B3.

“Tesla’s ratings reflect the significant shortfall in the production rate of the company’s Model 3 electric vehicle,” Moody’s analyst Bruce Clark said in the report. “The company also faces liquidity pressures due to its large negative free cash flow and the pending maturities.”



Read Article


Financial Sector Fed Up With Tesla's Production Issues - Slashes Credit Rating

About the Author

Agent009