Tesla zooms out of Junk rating at Moody's making it a blue-chip credit company
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Moody's Investors Service upgraded Tesla's (NASDAQ:TSLA) investment-grade status by one notch to Baa3 from prior Junk rating, becoming the second credit ratings firm after S&P Global Ratings (in October 2022) to do the same.

A high-grade credential from at least two agencies is enough to be formally considered a blue-chip credit among ratings-sensitive investors.
Moody's cited the company's expanding product offering, including early production of the Cybertruck slated for later 2023, its regional production facilities and heightened focus on efficiency and financial leverage after Tesla repaid ~$10B of debt in the last three years.
In its annual report, the company indicated that net cash used in financing activities decreased by $1.68B primarily due to a $1.92B decrease in repayments of convertible and other debt, net of proceeds from issuances of debt.
Quick look at the company's most recent quarter balance sheet in comparison to its peers:



Positives also include the company securing a $5B revolving credit facility this year, having very little outstanding debt, and its five-year credit-default swaps already trading in line with high-grade borrowers.
In January 2023, the automaker secured a new $5B revolving credit facility with banks; it may increase the revolving credit facility by up to $2B.
In October 2021, the company became the first junk-rated company with a market value of more than $1T+