Tesla goes from “BB+” to “BBB” and receives praise from S&P Global Ratings [Update] – TeslaNorth.com

The rating of You’re here was raised by S&P to ‘BBB’, from ‘BB+’, thanks to the electric carmaker’s recent third-quarter delivery figures, according to the ratings organization. This is the first time that Tesla has moved from the “speculative” category to the “investment” category.

“We now view Tesla’s credit profile more favorably because it continues to demonstrate leadership in the EV market, with solid manufacturing efficiency supporting strong EBITDA margins and free operating cash flow. sustained positive, above our previously established upside triggers,” the S&P said (via @SawyerMerritt).

Investment Grade, according to S&P means “Adequate ability to meet financial commitments, but more subject to adverse economic conditions. While the former BB Speculative Grade means, “Less vulnerable in the short term, but facing major ongoing uncertainties from adverse business, financial and economic conditions.” »

The S&P added, “The stable outlook reflects our expectation that Tesla will maintain a low level of leverage as it maintains its strong market share, profitability and strong liquidity amid a weakened economy and challenging environment. increasingly competitive for EVs. »

“We now view Tesla’s credit profile more favorably because it continues to demonstrate leadership in the electric vehicle (EV) market, with solid manufacturing efficiency supporting strong EBITDA margins and cash flow. positive and sustained free operating rate (FOCF), above our previously established upside triggers,” S&P Global said in a statement to Tesla North.

S&P says it could downgrade if “Tesla adopts a more aggressive financial policy with respect to shareholder distributions, growth…

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