Tesla Inc (NASDAQ: TSLA) is in focus this morning after Moody’s raised its credit rating to investment grade.
Reasons for the upgrade to Baa3 rating
The electric vehicles manufacturer now enjoys a Baa3 rating at Moody’s. The credit rating firm was elevated by the fact that Tesla Inc has repaid roughly $10 billion of debt over the past three years.
Tesla will maintain its position as one of the leading manufacturers of battery electric vehicles, as the company further solidifies its global footprint.
Regional production facilities and Cybertruck that’s expected to go into production later this year were among other reasons cited for the upgrade.
In October, S&P Global had also raised its rating on Tesla Inc. For the year, shares of the EV company are up 80% at writing.
Is Tesla stock a ‘buy’ at current price?
Remember that investment-grade ratings from two agencies is sufficient to tag the Nasdaq-listed firm a blue-chip credit.
The news arrives a month after Deutsche Bank reiterated its “buy” rating on Tesla stock and raised its price target to $250 – about a 30% upside from here. In his research note, analyst Emmanuel Rosner said:
We believe that increased clarity around the long-term trajectory for Tesla’s global operations, volume growth, and especially scale and cost of Tesla’s next-generation models, could reinforce the bull case for the stock.
At its investor day this month, Tesla Inc confirmed plans of a new factory in Monterrey, Mexico as Invezz reported HERE. The EV company is committed to sharply increasing its annual sales to 20 million vehicles by the end of this decade.
The post Moody’s upgrades Tesla Inc to investment grade appeared first on Invezz.
from USA News | Latest Market Updates & Live Opinion | Invezz https://ift.tt/Kfh3zTq
Wajeeh Khan
Click here to Join RICH DAD SUMMIT online with ROBERT KIYOSAKI - $1 Training for Passive Income: https://bit.ly/RichDadSummitWealthTraining
0 Comments