Elon Musk publicly challenged Moody's credit assessment of Tesla after the agency gave SpaceX a higher rating. The comments came as the two companies' financial profiles were compared.
Elon Musk questioned Moody’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. He stated that Tesla’s credit rating is “ridiculously low” and added that the difference “makes no sense.”
Musk highlighted Tesla’s financial position, noting the company holds over $40 billion in cash, carries no debt, and remains consistently profitable. Recent updates showed Tesla generated $1.4 billion in free cash flow during the first quarter of 2026.
Moody’s affirmed Tesla’s Baa3 rating with a stable outlook, citing the company’s electric vehicle leadership and technology strengths. The agency also pointed to challenges in the automotive segment and expected margin pressures.
SpaceX received its Baa1 rating with a stable outlook, supported by its leadership in orbital launches and recurring revenue from Starlink.
