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Tesla inches toward blue-chip status via Moody's rating boost

The agency boosted Tesla by two notches to the highest junk rating of Ba1 on Monday, citing improving profitability and business-scale prospects.

Photo: Bloomberg
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Photo: Bloomberg

Olivia Raimonde | Bloomberg
Moody’s Investors Service Inc.’s move to ramp up Tesla Inc.’s credit rating to the cusp of investment grade is bolstering expectations that the famous electric vehicle maker will secure blue-chip status as soon as early next year.

The agency boosted Tesla by two notches to the highest junk rating of Ba1 on Monday, citing improving profitability and business-scale prospects. Bloomberg Intelligence credit analyst Joel Levington projects Tesla will now enter the big league of high-grade issuers within 12 to 18 months. 

“Maintenance of current performance may be enough for additional Tesla upgrades at Moody’s,” he wrote in a note Tuesday.

Levington estimates Tesla

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First Published: Jan 26 2022 | 2:43 PM IST

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