Tesla Gets Unsolicited S&P Junk Rating on ‘Niche’ Position

Tesla Motors Inc., the electric-car company whose stock climbed fourfold last year, was slapped with a junk credit rating by Standard & Poor’s because of “considerable uncertainty” about its long-term prospects.

The unsolicited B- ranking, six levels below investment grade, reflects a business “constrained by Tesla’s niche and independent market position,” S&P, the world’s largest credit-rating company, said today in a statement. Palo Alto, California-based Tesla has a smaller scale relative to peers, a narrower product focus, and limited demand for its products, said S&P, which said its outlook on the rating is “stable.”