As a luxury electric car Tesla, not only led the development of new energy, but also promoted the diversity of the market, breaking the deadlock of the monopoly of petroleum vehicles. Tesla's popularity is higher every day, and more and more cars are sold, but the hidden dangers behind us cannot be ignored. Tesla's troubled autumn is not only downgraded but also facing the risk of bankruptcy. The specific events will be followed by Xiaobian. The early days of the rumors began to spread, and Tesla, who only burned money and did not make money, could not play anymore. On Tuesday, the international rating agency Moody's lowered Tesla's credit rating, which seems to provide a "real hammer" for this view. Moody's said that Tesla has not achieved the expected production targets in the process of burning money, and its funding gap may soon rise to more than $2 billion. Moody's downgraded Tesla's credit rating from B2 to B3, which is six levels below the "investment grade." In addition, they also downgraded Tesla's priority unsecured notes issued in August last year from B3 to Caa1, only 7 levels from the “garbage levelâ€. By definition, this means “very high credit risk, bad. Reputation." Overall, Moody's is not optimistic about the prospects of Tesla. Moody's analyst Bruce Clark said: "Tesla's rating declined mainly because the company's Model 3 electric car is seriously under-produced. And the company's large negative cash flow and nearer repayments. The deadline has brought tremendous liquidity pressure." For Tesla CEO Elon Musk, the situation in recent months can be described as a sharp turn. Just when Tesla first issued a debt eight months ago, he was able to convince investors to buy a large number of unsecured bonds at a very low interest rate of 5.3%. But after that, the market's long-term prospects for the company have gradually turned into doubt. Bloomberg's Model 3 production tracking tool estimates that the car's weekly production may be only 975 units, far below the target of 2,500 units per week. Before Moody's announced a lower credit rating, the price of Tesla's unsecured bonds had fallen to an all-time low of 89 cents, and the company's share price also fell 8.2% to a new low for the year. Moody's believes that despite the strong demand for advanced electric vehicles in the market and the support of the regulators, Tesla still needs to “make large-scale short-term financing to repay debts due and avoid liquidity shortagesâ€. According to credit company data, the company may need to raise more than $2 billion in short-term funding to cover the gap. However, HiTIn Anand, senior analyst at CreditSights, made a sharp impression on Tesla's $1.8 billion bond due in 2025: “Why would anyone buy these bonds? There is no reason to buy these bonds. You bear the risk of the stock, and you get only 5.3% interest.†Anand said that Tesla may choose to issue convertible bonds or use secured lending products to meet its capital needs. Moody's said that if Tesla is still unable to complete the Model 3 production target and is unable to raise new funds, its rating may continue to decline. Wind Mill Transformer, Special Designed Transformer, Special Designed Wind Transformer, OEM Wind Transformer Hangzhou Qiantang River Electric Group Co., Ltd.(QRE) , https://www.qretransformer.com
