Tesla’s credit rating was raised by Standard and Poor’s.

Tesla today (October 12, local time) won a major victory, according tomedia reports, it is reported that the financial information and analysis platform of standard and poor financial information and analysis platform of the credit rating department of the company upgraded the company’s credit rating. According to The Fly, the company raised Tesla’s issuer credit rating and long-term debt rating to B-plus from the previous BB rating.

Tesla's credit rating was raised by Standard and Poor's.

In September, the company decided to exclude Tesla from the Standard and Poor’s 500 index. The announcement led to a sharp drop in the company’s share price, which lost billions of dollars in Tesla’s market value.

The change demonstrates Tesla’s overall ability to repay its debts and the unsecured debt it currently has on its balance sheet. It wasn’t until recently, after Tesla’s China superst plant began operating, that investor confidence in the company’s ability to efficiently build and transport electric cars began to soar.

The company noted the improvements and cited other reasons for the rating increase. As the agency points out, Tesla’s global expansion will help it become competitive in electric vehicles. In addition to its super-battery plants in China and the United States, Tesla plans to operate a manufacturing plant in Brandenburg-Berlin, Germany.

It will be Tesla’s new superstys, which, according to Tesla CEO Elon Musk, will have several improvements over Tesla’s U.S. plants. These will be transformed into different models for similar models produced internationally.

Tesla's credit rating was raised by Standard and Poor's.

More importantly, the rating agency is optimistic about Tesla’s ability to maintain positive cash flow. Operating cash flow refers to the cash generated by an enterprise through its operating activities after accounting for expenses and product costs, which excludes the impact of financial and investment expenses on the cash position of the enterprise. “The stable outlook reflects our view that Tesla’s financial performance will be in keeping with our expectations that the ratio of weighted free operating cash flow to debt exceeds 5%, even if it expands its manufacturing footprint globally,” the company said. “

Tesla plans to significantly increase its current production over the next decade. The upgrade will help allay concerns about the company’s profitability and long-term operational fluency.

In the long run, Tesla wants to make its own batteries in-house and stop sourcing parts from outside. The company also plans to launch a new electric car priced at about $25,000. This will help Tesla compete effectively with internal combustion locomotives because it will allow the company to lower entry prices for its product line.

As the final quarter of the year looms, all analysts are betting on whether the Palo Alto, California-based carmaker will be able to meet its own target of delivering 500,000 vehicles by the end of the year.

Tesla’s third-quarter 2020 auto delivery report showed the company delivered 139,300 vehicles in the quarter, a figure that brought its total sales for the full year to 318,850.