Hyperdrive
Tesla Cut by Moody's on Production Issues, Liquidity Concerns
- Corporate rating lowered to B3, bond sold in August at Caa1
- Carmarker may have to do near-term capital raise of $2 billion
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Tesla Inc.’s credit rating was downgraded by Moody’s Investors Service on Tuesday as the electric car company burns through cash, fails to meet production expectations and may soon have to raise more than $2 billion.
Moody’s cut Tesla’s overall rating to B3, or six levels below investment grade, from B2 and said its outlook on the company is negative. Tesla’s $1.8 billion of senior unsecured notes, issued in August, were downgraded to Caa1, seven steps into junk, from B3.