From Barron's All Root
Barron’s
“Tesla investors recently got some good news from Fitch.
The bond rating firm assigned the electric-vehicle maker an investment-grade BBB rating on Monday evening. It was Fitch’s first rating, and signifies “good credit quality” with a low chance of default.
“Tesla’s ratings reflect the company’s strong market position as a global leader in battery electric vehicles (BEVs) and its focus on transitioning into a physical AI company,” the report reads.
Fitch expects that the BEV business will remain strong, but significant AI investments will lead to more debt down the road, which is why the rating might not be higher. ”