Tesla Inc.’s TSLA, -4.68% creditworthiness still faces “meaningful pressures” even though the company reached some of its Model 3 goals and repaid debt on time, Moody’s Investors Service said in a note Friday. “Tesla is challenged internally by ongoing operational missteps and strategy reversals over a short time period,” the credit ratings agency said in a note Friday. Other car makers have stepped up electric-vehicle investments and the original business model for the Model 3 of high volume production and a low price is proving difficult to achieve, Moody’s said. The strategy reversals, which include backtracking on its decision to close stores, show management shortcomings, Moody’s said. Tesla shares lost nearly 4% on Friday and are down 14% in the past 12 months, contrasting with 2.6% gains for the S&P 500 index. SPX, +0.68% Moody’s rates Tesla debt B3, putting it in the junk category.
Tesla Inc. shares were trading at $278.56 per share on Friday afternoon, down $11.40 (-3.93%). Year-to-date, TSLA has declined -16.30%, versus a 12.82% rise in the benchmark S&P 500 index during the same period.
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