On Tesla are gathering financial clouds

28 March 2018

Stock rating company downgraded Tesla seriously

Yesterday, rating Agency Moody's downgraded the rating of long-term liabilities of the company Tesla Inc. category "B2" to "B3" and indicated the Outlook as "negative". The Agency stated the obvious – the company can't meet its obligations for the development of "budget" electric car Model 3, whose release was originally promised to increase to 5,000 units per month by the end of 2017 and 10,000 units by the end of 2018. However, despite the broadcast of the statement of the founder and chief owner Elon musk for the entire fourth quarter of last year was made only 2452 units of Model 3, and the plans for its release were adjusted to 2.5 thousand electric cars by the end of March 2018 and the 5 thousand by the end of June. The deadline of the first paragraph of "Plan No. 2" is nearing the final date, but doubt their implementation is still increasing. So S&P Global Ratings downgraded the debt of the company Ilona Mask to, i.e., "junk" is not representing the investment interest and "highly speculative". The auction on 27 March showed a decline in shares of Tesla Inc. 8%. In addition, unsecured securities, which on the wave of euphoria was released in August 2017 in the amount of $1.8 billion and has slipped in the rating to Caa1, i.e., at seven p. p. down to the garbage level.



CreditSights analyst Chitin Anand, in General, believes that intelligent investors have no reason to buy a "valuable" paper Tesla Inc. It looks like a game of chess Ostap Bender, the one-eyed chess player is rapidly approaching the fateful phrase "the office says".