- 28 May 2014 at 1:56 PM
Even the most incompetent (or, if you prefer, corrupt) organizations occasionally get something right, especially when they are not being paid to get it wrong in a client’s favor. This seems to be one of those occasions, meaning that Elon Musk may not need to hit up his rich friends for the $200K a month he needs to survive (and fly), but he might have to pay a little more to get it from the capital markets.
Standard & Poor’s Ratings Services labeled Tesla Motors Inc. a “vulnerable” investment, giving it a noninvestment-grade corporate debt rating of B-.
The rating, four levels below investment grade, is unsolicited because Palo Alto, Calif.-based Tesla doesn’t have a rating agreement with the S&P to rate its debt, but S&P said there was sufficient investor interest to go forward with the rating….
The ratings firm estimates that Tesla will burn cash in 2014 and 2015 as large capital expenses connected to building a giant battery factory, Supercharger stations, showrooms and service facilities as well as developing the Model X SUV and another smaller car will use more cash than it will generate through selling new vehicles, said Nishit Madlani, a credit analyst with S&P.
- A Credit Rating You Can Believe In May 28, 2014
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- Opening Bell: 07.25.14 July 25, 2014
- Ken Griffin's Title As World's Richest Illinoisan In Peril July 24, 2014
- Wharton Alums Not Interested In Spending Any More Time Together Than Absolutely Necessary July 24, 2014
- Ken Griffin's Lawyers Have Something To Get Off Their Chests July 24, 2014
- Barclays: Attorney General Not Sophisticated Enough To Understand How Our Dark Pools Work July 24, 2014
- Deutsche Bank CFO Probably Doing Some Soul-Searching Right About Now July 23, 2014
- Bill Ackman Hates The Hell Out Of Herbalife Because God Damnit He Loves America July 22, 2014
- There’s Something Else Cynk Doesn’t Have July 24, 2014
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- Bess Levin
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