Tesla (TSLA) stock closed up 7.82% on Tuesday at 197.58, after Moody’s Investors Service upgraded its credit rating to investment-grade status. The rating agency cited Tesla’s strong financial performance, growing market share, and leadership in electric vehicles and battery technology as reasons for the upgrade.
Tesla is now one of the few automakers with an investment-grade rating from both Moody’s and S&P Global Ratings, which also raised Tesla’s credit score to BBB- in October 2022. This means that Tesla can borrow money at lower interest rates and attract more investors who are looking for safer and higher-quality assets.
Tesla has been delivering impressive results in recent quarters, despite facing supply chain challenges, regulatory hurdles, and increasing competition from rivals like Ford (F), General Motors (GM), and Rivian (RIVN)
. In the fourth quarter of 2022, Tesla reported revenue of $24.32 billion, up 37% year-over-year, and net income of $3.69 billion, up 59% year-over-year. The company also achieved a record delivery of 1.3 million vehicles in 2022, surpassing its own guidance of 1 million.
Tesla’s stock has been on a roller-coaster ride over the past year, reaching an all-time high of $384.29 in August 2022 before plunging to a low of $176.35 on Monday amid market volatility and concerns over rising inflation and interest rates.
However, some analysts remain bullish on Tesla’s long-term prospects, citing its innovation edge, loyal customer base, global expansion plans, and potential growth opportunities in areas like autonomous driving, solar energy, and battery storage.
According to Yahoo Finance data, Tesla has an average analyst price target of $195.99, implying a 10% upside potential from its current level. The company has a market capitalization of $579.8 billion, making it the most valuable automaker in the world by far.
