Moody’s Investors Service has upgraded Tesla’s credit rating from junk status to investment-grade quality, which is a significant milestone for the electric vehicle maker. The credit rating has been upgraded to Baa3, which is the first step on Moody’s investment-grade ladder, from Ba1, the highest rating for high-yield corporate debt. Moody’s analysts believe that Tesla will continue to be one of the top battery electric vehicle manufacturers with a growing global presence and high profitability. Additionally, Tesla’s prudent financial policy and operational track record were considered in the upgrade. Moody’s has also changed its outlook from ‘Positive’ to ‘Stable’ due to the increasing competition in the market. This news has impressed investors, with Tesla’s stock rising by 6.7% in New York on Tuesday afternoon, reaching US$195.53. The upgrade in credit rating is expected to have a positive impact on Tesla’s future growth prospects and financial stability.