Home > Electric car maker Tesla given ‘junk rating’

Electric car maker Tesla given ‘junk rating’

article image The Tesla S is the fastest green car available.

Electric car maker Tesla has been given a ‘junk’ rating, despite its Model S car being named fastest green car.

AFP reports that Standard & Poor's (S&P) gave the company a 'B-' grade with a stable outlook, citing the fact that there is still a limited market for its cars and that more competitors are likely to challenge in that market.

"We expect global competition for alternative fuel vehicles to intensify over the next few years as competitors penetrate this market through improved products," S&P said in a statement.

"We believe there is considerable uncertainty in Tesla's long-term prospects and believe that the company is less likely (compared to larger, more established automakers) to successfully adapt to competitive and technological displacement risks over the medium to long term."

One factor on Tesla’s side is Tesla founder Elon Musk's plan to build a $US5 billion ($5.41bn) battery factory which promises to cut the cost of producing lithium-ion auto batteries.

Meanwhile, as Zacks reports, the Automobile Association of America (AAA) gave Tesla’s Model S top points in its Green Car Guide.

According to the guide, the Tesla S is the fastest green car available, but has a low range of 426 km and a long charging time.

The AAA reviews 80 hybrid vehicles annually for Its Green Car Guide. It looks at hybrids vehicles, electric cars, CNG-powered cars, clean diesels and partial zero emissions vehicles.

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