Tesla: Moody's downgrades credit rating; shares fall again
(CercleFinance.com) - Credit rating agency Moody's has downgraded Tesla's credit rating, which has sent its share down over 7% today on the Nasdaq after an 8.
2% fall yesterday.
Indeed, Moody's has cut Tesla's corporate family rating to "B3," with senior notes down to "Caa1," coupled with a "negative" outlook.
Another reason for investor concern is that the company will report first-quarter vehicle production and deliveries in early April, including a keenly awaited update on Model 3 production.
"The whole world is watching Tesla," said analysts at Bernstein. "Model 3 is supposed to bring Tesla into the mainstream. But the company's ambitious production ramp is not going to plan," the broker said.
"We believe Tesla has not only tried to reinvent the car, but has also tried to reinvent the production line, with hyper-automation. This is creating serious issues," it insisted.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
2% fall yesterday.
Indeed, Moody's has cut Tesla's corporate family rating to "B3," with senior notes down to "Caa1," coupled with a "negative" outlook.
Another reason for investor concern is that the company will report first-quarter vehicle production and deliveries in early April, including a keenly awaited update on Model 3 production.
"The whole world is watching Tesla," said analysts at Bernstein. "Model 3 is supposed to bring Tesla into the mainstream. But the company's ambitious production ramp is not going to plan," the broker said.
"We believe Tesla has not only tried to reinvent the car, but has also tried to reinvent the production line, with hyper-automation. This is creating serious issues," it insisted.
Copyright (c) 2018 CercleFinance.com. All rights reserved.