Type to search

Moody’s Sees Tesla Staying at EV Leader Spot, Upgrades Rating

Moody’s affirmed in a note that Tesla’s outlook remains positive and the company will continue to increase its scale rapidly


Tesla
The stock split, if approved, would be the latest after a five-for-one split in August 2020 that made Tesla shares cheaper for its employees and investors. Photo: Reuters.

 

Moody’s upgraded Tesla Inc‘s debt rating by two notches to “Ba1” from “Ba3”, reflecting the ratings agency’s expectations that the Elon Musk-led company will maintain its position as the leading battery electric vehicle manufacturer.

Moody’s affirmed in a note that Tesla’s outlook remains positive and the company will continue to increase its scale rapidly and improve its profitability notably.

Tesla’s financial policy is likely to be prudent and liquidity would remain very good, Moody’s said, adding that a more competitive offering of battery electric vehicles by other automakers could start to exert some pressure on the company’s margins in 2023.

In January, Tesla reported record quarterly deliveries that far exceeded Wall Street estimates, riding out global chip shortages as it ramped up China production. It was the sixth consecutive quarter that the world’s most valuable automaker posted record deliveries.

The ratings agency also anticipated that Tesla will deliver nearly 1.4 million vehicles in 2022, up from about 936,000 in 2021.

 

  • Reuters with additional editing by Sean OMeara

 

ALSO READ:

 

China EV Maker Nio’s US Expansion Sets Up Tesla Showdown

Can Tesla beat Mercedes to Launch EVs in India?

Tesla Delays Initial Production of Cybertruck to Early 2023

 

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

logo

AF China Bond