Big
News!
If you want to borrow money from a bank, they look at your credit rating. Businesses have credit ratings too, rated by Moody's Analytics. If a business has anything under "Investor Grade", a bank will either not lend them any money, or lend at a higher interest rate because of the risk, or only lend some of what the company wants.
Up until today, Moody's rated Tesla as a "substantial credit risk". Now Moody's rates Tesla at "Investor Grade". Finally! It takes some financial institutions a long time to see what many "retail investors" have seen for a long time.
Not that Tesla needs to borrow any money; they have $24 billion in the bank (from profits). In fact, they prefer to carry no debt (unlike the heavily indebted legacy car manufacturers).
And many fund managers, indexes, and ETFs that previously couldn’t invest in Tesla due to the junk rating it had, can now do so. This will cause the stock price to rise slowly over time. And then, when Tesla starts producing the $25,000-$7,500=$17,500 compact car end of 2024, and its energy business puts more explosive numbers on its balance sheets as production of its MegaPack ramps... Boom!
