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rjf1990 | 11 years ago
While the term "junk" sounds bad, it is simply a rating of riskiness. From any objective standpoing, Tesla is a risky company. They have had negative net income over the past 3 years. You need income to have positive cashflow (excluding financings of course) and you need cashflow to pay off debt.
Do I think Tesla is going to change the world? Yes. Do I think they will survive? Probably. But from an objective, financial standpoint, they are a pretty damn risky company. Stop putting down the ratings agency for doing their job. The financial statements really do tell the whole story.
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