• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
SUBSCRIBE
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Tech Automobiles

Moody’s upgrades Tesla’s corporate family rating to Ba3, shows positive outlook

Meghana Kandra by Meghana Kandra
January 25, 2022
in Automobiles, Business, Cars, Markets
0
Moody's upgrades Tesla's rating to Ba1, says outlook positive
215
SHARES
3.6k
VIEWS
TwitterWhatsappLinkedin

The Bond credit rating company Moody’s investor service rates Tesla this year and shows that Tesla will continue to stay at the top in the EV industry. The corporate family rating of Telsa is upgraded to Ba3 from B2, probability of default rating, Upgraded to Ba3-PD from B2-PD, and  Speculative Grade Liquidity Rating, Upgraded to SGL-1 from SGL-2. It shows that Tesla is expected to continue a positive outlook. Also, continue to increase its scale rapidly and improve its profitability notably.

You might also like

Mark Cuban Selling Majority Stake in Mavericks to Miriam Adelson 

Apple Breaks Ties with Goldman Sachs: Apple Card Embarks on a New Journey

The Oracle of Pasadena and Warren Buffett’s Right-Hand Man – Unveiling the Secrets of Value Investing

Moody's upgrades Tesla's rating to Ba1, says outlook positive
Image credits- The Economic Times

Moody’s stated, “The growing scale of Tesla’s BEV operations will support gradual improvement in the company’s automotive profitability and margins, excluding the contribution from its sale of regulatory credits.”

Furthermore points out that the company has been successful with its global expansion and production rate. Interestingly Moody’s also talks about how emissions credit has been an advantage for Tesla so far. With absent credit sales, Tesla too could have losses with operations. This is what happened with many traditional automakers in the US. The bond credit rating company adds that the advantage of having EV credits would decline eventually as the industry is shifting towards electric vehicles. However, overall the company is reflected to have a positive outlook.

Challenges

As Tesla is expanding globally, there have been many challenges. So far its sales included exports, which amounted to large numbers. Now, as Giga Berlin is also expected to start production, the export number will be reduced in the US factories. In addition to this, more BEVs are expected to be launched into the market which is much cheaper. Leading to Tesla losing its competitive edge and pricing position by 2%.

As many challenges are there, there is also ample potential for Tesla’s growth. As it already has an all-electric lineup, unlike traditional automakers. It would not challenge its existing lineup. Furthermore, Moody’s stated, “Tesla faces moderate risk in its corporate governance structure. This risk relates principally to the considerable latitude afforded to the company’s CEO, Elon Musk, who owns about 20% of the company. He also has close personal ties with various directors, and the board has not demonstrated meaningful oversight over the activities of the CEO. In addition, Mr. Musk’s focus on Tesla must compete with his responsibilities for outside ventures such as SpaceX.”

The EV maker has overcome many challenges over years, however, there was not that much competition compared to the upcoming scenario. Every automaker entering the EV market from startup to traditional automaker competes with Tesla. The upcoming electric up, Cybertruck is expected to enter the market by early 2023. It is being strongly compared to Ford’s F-150 Lightning, Rivian R1T, and GMC EV Hummer as well.

Tags: battery manufacturerelectric vehicle manufacturerElon MuskMoody's ratingTeslaWall Street
Tweet54SendShare15
Meghana Kandra

Meghana Kandra

Meghana studied PGD in Journalism, open university. She has more than five years of experience in content writing, from creative content development to online journalism. Electric vehicle enthusiast, engineer, and feminist.

Recommended For You

Mark Cuban Selling Majority Stake in Mavericks to Miriam Adelson 

by Anochie Esther
November 30, 2023
0
Miriam Adelson

Mark Cuban, the outspoken and iconic owner of the Dallas Mavericks, is making headlines with the sale of a majority stake in the franchise to Miriam Adelson and...

Read more

Apple Breaks Ties with Goldman Sachs: Apple Card Embarks on a New Journey

by Rounak Majumdar
November 30, 2023
0
Apple Breaks Ties with Goldman Sachs: Apple Card Embarks on a New Journey

Unexpectedly, Apple has announced that it is ending its long-term credit card association with Goldman Sachs. This action, which is anticipated to go into effect in the next...

Read more

The Oracle of Pasadena and Warren Buffett’s Right-Hand Man – Unveiling the Secrets of Value Investing

by Rounak Majumdar
November 30, 2023
0
The Oracle of Pasadena and Warren Buffett's Right-Hand Man - Unveiling the Secrets of Value Investing

The "Oracle of Pasadena," Charlie Munger was a well-known businessman, lawyer, and investor who spent more than 40 years as Berkshire Hathaway's vice chairman and right-hand man to...

Read more
Next Post
How to get unbanned from omegle

How to get unbanned from omegle

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Nexcopy USB Duplicator

Make data loading to flash drives a simple process. Nexcopy USB Duplicator Systems.

Related News

How To Get To Bean Valley in Super Mario RPG

How To Get To Bean Valley in Super Mario RPG

November 19, 2023
Cybertruck in a showroom

Tesla Cybertruck Showroom Locations: Where to See the Electric Beast in Person

November 24, 2023
How to get Johnny Silverhand arm in ‘Cyberpunk 2077’

How to get Johnny Silverhand arm in ‘Cyberpunk 2077’

August 28, 2023
How to send a gift message on Instagram

How to send a gift message on Instagram

August 18, 2023
How To Play Naruto x Boruto Ultimate Ninja Storm Connections with Friends

How To Play Naruto x Boruto Ultimate Ninja Storm Connections with Friends

November 19, 2023
COD- Modern Warfare

Burst Assault Rifle becomes a full-auto demon in Modern Warfare 3 loadout

November 14, 2023

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at info@techstory.in

Advertise With Us

Reach out at info@techstory.in

BROWSE BY TAG

#Crypto acquisition AI amazon android Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk entrepreneurship Ethereum facebook flipkart funding Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT Russia Social Media SpaceX startup startups tech Tech news technology Tesla TikTok trending twitter uber whatsapp

© 2023 Techstory Media Pvt Ltd

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2023 Techstory Media Pvt Ltd

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?