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Elon Musk speaks on stage during the Westworld Featured Session during SXSW at Austin Convention Center on March 10, 2018 in Austin, Texas.
Moody’s downgraded Tesla’s credit ratings Tuesday and changed its outlook to negative from stable, citing “significant shortfall” in the Model 3 production rate and a tight financial situation.
The credit ratings agency also said the electric car maker will likely need to raise more money in the near future to meet its cash needs and maintain its expected pace of expansion.
Moody’s lowered its corporate family rating on Tesla to B3 from B2 and downgraded its rating on the company’s senior notes to Caa1 from B3. The speculative grade liquidity rating was cut to SGL-4 from SGL-3.