I came across an interesting article about S&P’s mysteriously timed
rating of Tesla recently. The author
questions S&P’s credibility given its inability to accurately forecast the mortgage
crisis and its admission that “it didn’t know what it was doing.”
Tesla’s bonds (the debt that the S&P is so concerned
about) aren’t due to start being paid until 2018 and they are positioning
themselves to be in a fantastic position with the new Gigafactory that will be
the largest producer of lithium ion batteries.
This will make the company way more valuable than it is today. Consider the rise in brand appreciation and a
larger market share with their sedan models, Tesla should have no problem
paying back their debt and then some.
Here’s a link to the article:
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