Tesla Upgraded by S&P After Cash Levels Soar to Record High
- Rater boosts automaker one notch to BB with positive outlook
- Company raised $5 billion in equity sale earlier this month
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Tesla Inc. was upgraded by S&P Global Ratings -- putting the company two steps from investment-grade -- after a recent share sale boosted its cash to record levels.
The rater raised Tesla one notch to BB, in line with that of Moody’s Investors Service. S&P assigned a positive outlook, saying there is at least a 33% chance that Tesla could be upgraded again in the next year if its competitive advantage “strengthens meaningfully,” analysts Lawrence Orlowski and Nishit Madlani said in a report Thursday.