S&P announces Tesla credit rating upgrade. Company nears blue-chip status

Tesla delivered 343,830 vehicles in the third quarter. The company is expected to release its earnings report on Oct. 19. It managed to pay off the debt without losing the status of the world's leading electric car manufacturer that owns four plants on three continents. 

Tesla Inc. has inched toward blue-chip status. This was influenced by S&P Global Ratings' decision to raise the credit rating of the electric car manufacturer to investment grade. 

Tesla’s credit profile has been rated higher. The company continues to stay ahead of competitors in the electric vehicle market and  maintain high production efficiency. Besides, Tesla's EBITDA margins remain strong with free operating cash flow being sustained positive.

S&P upgraded the company's credit rating, citing low financial leverage and record margins, which are expected to stand out among competitors.

This will not be the last credit rating upgrade for Tesla. 

In order for the automaker's debt to be moved into the “investment grade” category, another major credit rating agency must raise the company's credit score. In January, Moody's Investors Service upgraded Tesla’s debt rating to Ba1, one notch below investment grade.