S&P boosts Tesla

S&P said it boosted its ratings on Tesla Inc. and its notes to BB+ from BB.

“Despite near-term supply bottlenecks for the industry, we expect Tesla deliveries and earnings to remain strong over the next few quarters. Despite semiconductor shortages and other supply-related bottlenecks, Tesla appears to have minimized production disruption relative to most automakers. This is likely to support its strong revenue and earnings growth for 2021. Demand is backed by a higher backlog of orders, albeit with some delays in customer deliveries,” S&P said in a press release.

The agency said it expects Tesla to deliver more than 900,000 units in 2021, slightly above S&P’s prior forecasts of about 850,000 units with a substantial increase to 1.2 million-1.5 million units over the next 18 months.

The outlook is positive.

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