Standard & Poor's (S&P) Upgrades Tesla's Rating To B+ From B-

by Vincent Y July 28, 2020

Standard & Poor's (S&P) Upgrades Tesla's Rating To B+ From B-

On July 28th, 2020, Standard & Poor's upgrades Tesla's rating to B+ from B- reflects the California EV maker has strong business conditions and improved indicators. S&P thinks Tesla's competitive position continues to strengthen with improved cost absorption on larger volumes, also with higher operational efficiency, process automation. 

On July 22th, Tesla (TSLA) reported an EPS of Adj US$2.18 and a US$6.04 billion revenue for Q2 2020, exceeding Wall Street's estimates.

Highlights from the Q2 earning

HIGHLIGHTS

  • $535M increase in our cash and cash equivalents in Q2 to $8.6B
  • Operating cash flow less capex (free cash flow) $418M in Q2
  • Tesla reports Q2 Model S/X deliveries was 10,614 and Model 3/Y Deliveries 80,277

  • Tesla says it's continuing to build capacity for Model Y at Gigafactory Berlin and Gigafactory Shanghai

  • Tesla installing more machinery at Fremont Factory, which is expected to increase total Model 3/Model Y capacity from 400,000 to 500,000 units per year

  • Tesla Megapack generated profit for the first time in Q2
  • Storage deployments increased sequentially to 419 MWh, driven by increases in both Powerwall and Megapack

  • Four quarters of sequential profitability
  • Tesla listed two new factories under its "Installed Annual Capacity" graph. One for New US Factory which will make the Cybertruck and Tels Semi and one United States factory for the Tesla Semi and Roadster







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