Tesla is one of the most innovative corporations in the entire world. They have a foothold in numerous industries including rocket design, electric vehicle design, and even solar power and energy storage technologies. The company is led by the original founder of PayPal, Elon Musk. He has been able to oversee the development of some of the world’s most advanced rocket systems including the recently displayed Falcon Heavy reusable rocket system. Over the last several decades the finances of Tesla have been fairly high performing thanks to a strong combination of both venture-capital and credit. During this time. The company has never managed actually to produce a profit and is instead losing billions of dollars.
Over the last week, the stock value for Tesla has managed to drop significantly as of the company had its credit rating downgraded. This has led many to ask if what Tesla is doing will be entirely sustainable. Over the past several days there has been a drop of around 15% in the value of the stock of Tesla. This is the largest drop in the stock value since 2016.
There is good news for the company though. The vehicles that are produced by Tesla have an incredibly high demand, and there is still a huge backlog for the newly developed Model 3. Overall around 30% of customers who were invited to take the opportunity to purchase one of these new vehicles were able to take up the company on that offer.
There is still more bad news, however. The credit rating of Tesla has been downgraded to extremely bad which will make it incredibly expensive for Tesla to borrow money. This might not be an issue if creditors believed in the mission of Tesla.
There is one saving grace for the company, however. The company still holds a giant battery plant in the state of Nevada. It is known as the Gigafactory. This asset can be mortgaged potentially if Tesla is unable to secure funding through other manners successfully. In addition, there are plenty of individuals who are ready to purchase vehicles from the company.