Tesla Touches All-Time High Ahead of S&P 500 Inclusion, Gets Upgraded Debt Rating

CleanShot 2020 12 17 at 14 23 57 2x

Ahead of Tesla’s inclusion into the S&P 500 on Monday, December 21, the company’s shares touched an all-time high on Thursday, reaching $658.82, before closing at $655.90.

The closing price of Tesla on Friday will determine the stock’s weighting in the S&P 500. Tesla has about 80% of its stock available for trading, while the rest is held by Elon Musk and other insiders. Tesla currently has a market cap of $619 billion.

According to S&P Global Ratings on Thursday, it upgraded the rating on Tesla’s debt, up from BB- to BB, inching closer to BB+ and A3 at the top.

S&P analysts said Tesla’s “mounting liquidity has substantially reduced its financial risk,” according to Marketwatch. Tesla recently closed a $5 billion stock sale, its second capital raise of the year. The company is expected to end 2020 with well over $19 billion in cash and equivalents, which should bring its debut to “essentially zero”, says the S&P.

“In addition, the company continues to improve operating execution, become more efficient in production, and make strides in its global expansion,” added the S&P analysts.