Mexican Media Brands
Moody’s Lowers Tesla’s Credit Rating
Tesla Inc.’s continuing production problems and liquidity concerns caused Moody’s Investors Service to lower its overall rating of the electric car company further into “junk” territory.
#economics
Share
Tesla Inc.’s continuing production problems and liquidity concerns caused Moody’s Investors Service to lower its overall rating of the electric car company further into “junk” territory.
Moody’s dropped its rating from B2 to B3, six levels below investment grade. The service also dropped its rating for the company’s $4.1 billion in senior unsecured notes from B3 to Caa1, seven levels under investment grade. Moody’s adds that its outlook on the company is negative.
The service says Tesla’s poor production record for its new Model 3 electric sedan is a major reason for the downgrade. A successful launch for the new car, Tesla’s first mainstream model, is considered a critical step for the company to move from chronic losses to sustainable profitability.
Bloomberg News estimates that Tesla currently is producing nearly 1,000 Model 3 cars per week. The carmaker has targeted weekly output of 2,500 units by the end of March.
RELATED CONTENT
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future