It's clear that most people commenting on this do not understand finance. If you look at Tesla's financial statements it's clear that they should have a junk rating.
While the term "junk" sounds bad, it is simply a rating of riskiness. From any objective standpoing, Tesla is a risky company. They have had negative net income over the past 3 years. You need income to have positive cashflow (excluding financings of course) and you need cashflow to pay off debt.
Do I think Tesla is going to change the world? Yes. Do I think they will survive? Probably. But from an objective, financial standpoint, they are a pretty damn risky company. Stop putting down the ratings agency for doing their job. The financial statements really do tell the whole story.
While the term "junk" sounds bad, it is simply a rating of riskiness. From any objective standpoing, Tesla is a risky company. They have had negative net income over the past 3 years. You need income to have positive cashflow (excluding financings of course) and you need cashflow to pay off debt.
Do I think Tesla is going to change the world? Yes. Do I think they will survive? Probably. But from an objective, financial standpoint, they are a pretty damn risky company. Stop putting down the ratings agency for doing their job. The financial statements really do tell the whole story.