Tesla stock now blue-chip after credit upgrade

Moody’s: EV maker will remain 'one of the foremost manufacturers of battery electric vehicles'

Tesla is now a blue-chip stock. Moody’s Investors Service assigned a ‘Baa3’ long-term issuer rating on Monday to the electric vehicle and clean energy company. The bond ratings agency also withdrew the company's ‘Ba1’ corporate family rating.

‘Baa3’ is Moody's lowest investment grade rating. ‘Ba1’ is the agency's highest speculative grade rating.

"The rating action reflects expectation that Tesla will remain one of the foremost manufacturers of battery electric vehicles with an expanding global presence and very high profitability," Moody's said in a statement.

What is a blue-chip stock?

A large, valuable company that is well-established is considered blue-chip. Other blue-chip stocks include American Express, Boeing and Nike. 

TESLA HIT WITH ANTITRUST CLASS ACTION LAWSUITS OVER MONOPOLIZATION OF REPAIRS, REPLACEMENT PARTS

"The upgrade also incorporates governance considerations, including Tesla's prudent financial policy and management's operational track record," the statement added. 

Elon Musk gives a speech in Shanghai

Tesla Inc CEO Elon Musk speaks at an opening ceremony for Tesla China-made Model Y program in Shanghai, China Jan., 7, 2020.  (Reuters/Aly Song/File Photo / Reuters Photos)

Ticker Security Last Change Change %
TSLA TESLA INC. 175.79 -4.04 -2.25%

Moody’s said Tesla should deliver approximately 1.8 million vehicles around the world in 2023, representing a 34% improvement from 2022, while citing "considerable investments" in new vehicle and battery production as enabling a "steep increase" in global deliveries. 

ELON MUSK BANKS ALMOST $12B OF TESLA MONEY IN SEVEN DAYS

Including the company’s Cybertruck, Moody’s also highlighted the expansion of Tesla’s product lineup.

Tesla's Cybertruck

Tesla's Cybertruck is displayed at Manhattan's Meatpacking District in New York City., May 8, 2021.  (Reuters/Jeenah Moon / Reuters Photos)

The upgrade comes in the wake of antitrust class action lawsuits over the monopolization of repairs and replacement parts filed in a federal court in San Francisco last week. The charges say Tesla knowingly designs its cars to discourage owners from doing repairs themselves.

CLICK HERE TO READ MORE ON FOX BUSINESS