Moody’s sits Tesla on the EV throne

Rating agency Moody’s has upgraded Tesla Inc’s debt rating by two notches to “Ba1” from “Ba3”.

Moody’s expects that the Elon Musk-led company will maintain its position as the leading battery electric vehicle manufacturer.

Moody’s sees Tesla’s outlook remaining positive.

Moody’s also expects the company to continue to increase its scale rapidly.

The rating agency anticipates that Tesla’s financial policy is likely to be prudent and liquidity would remain very good.

However, Moody’s sees Tesla’s Margin being pressured by a more competitive offering of battery electric vehicles by other automakers.

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

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.