Tesla (TSLA) has had a busy few months, and it’s expected to release its Q3 earnings next week.
On Monday, S&P Global Ratings raised its debt ratings on Tesla from B+ to BB-, according to Market Watch. This places the company just two notches away from an investment-grade rating.
Tesla stocks (TSLA) rose 2% on Monday after the announcement. Year-to-date, Tesla has grown 430%, with an advance of about 9% for the S&P 500 Index.
My hope and expectation: Tesla in Q3 earnings to report profit WITHOUT ZEV credits! S&P 500 inclusion to follow. TSLA reaches $600 in October.
— B Burnworth (@bburnworth) October 6, 2020
The electric vehicle (EV) company is also expected to sell over 470,000 units in 2020, and as many as 800,000 in 2021. A recently leaked email says Tesla wants to hit 500,000 vehicles produced in a single year, which might happen with a strong Q4.
S&P cited increasingly dialed-in processes as the reason for the rating increase, saying “Improved execution, increasingly efficient production, and global expansion continue to strengthen the company’s competitive position.”
S&P also told reporters, “This ramp up in production was significantly faster than its initial Model 3 ramp up, which took over nine months to reach the same weekly rate.” The committee continued, “We expect further improvements in efficiency, cost, and technology as Tesla builds on lessons learned from prior factories.”
Efficiency is the cornerstone of Tesla’s success right now, and as it finishes up Gigafactories in Berlin and Austin, the company is still in the process of becoming even more efficient.
At the time of writing, Tesla’s (TSLA) stock is worth $444.02, up 0.39% from yesterday.
