Elon Musk Slams Tesla Credit Rating as ‘Ridiculously Low’ Amid Buyback Speculation

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Musk's latest critique of Tesla's credit rating revives debate over capital allocation and the company's financial standing.
@SawyerMerritt @Tesla Tesla’s credit rating is ridiculously low tbh

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Elon Musk on Tuesday took aim at Tesla Inc.'s credit rating, calling it 'ridiculously low' in a social media post. The comment, directed at Tesla bulls, comes amid ongoing speculation over whether the electric vehicle maker will initiate a share buyback or bolster its cash reserves. Tesla's debt is rated Ba1 by Moody's and BB+ by S&P, both one notch below investment grade, reflecting concerns over production scalability and competitive pressure.

The tweet, while brief, touches on a sensitive issue for Musk, who has previously argued that Tesla's financial health is stronger than its rating suggests. The company has generated significant free cash flow in recent quarters, yet its high growth trajectory and capital expenditure requirements keep analysts cautious. Some investors view an upgrade as a catalyst for stock appreciation, potentially enabling cheaper borrowing costs and supporting a buyback program. As of now, Tesla has not announced any formal debt reduction or share repurchase plans.

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