Curious as to
The short answer is that there is not necessarily any impetus for another review until the next annual review in 12 months time. S&P (the ratings agency, not index manager) tend to do annual reviews only unless there is very big news, or if there is a capital markets transaction occurring (debt raise or equity raise) for which S&P would be hired to rate.
We see Moody's do a periodic review every year or so. Moody's also will review the company when they review the auto loan securitisations (for which Tesla will pay Moody's). You can see the latest upgrade on 25th March this year coincides with timing of the first securitisation this year. There was a second Tesla auto loan securitisation in September this year, however Moody's didn't make any ratings action announcement at that time.
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Re Tesla Finance LLC:
Would it make sense for Tesla to offer a loan program for car buyers who have TSLA shares to present as collateral?
For Tesla car buyers who own TSLA, they would probably get better rates than straight loans from banks or savings institutions depending on their credit ratings. Process would be simpler, simple transfer of ownership of TSLA stock. How much and what rates .. should be some mutually satisfactory solution. Easy for Tesla to monitor their car whereabouts and usage, which banks cannot do, so there should be some benefits in that.
For Tesla buyers who have investments in other stocks - they'd have to swap some for TSLA, which probably would be in their interest altho they may not see this till some months later.
For Tesla:
1. This would encourage all younger investors and Tesla fans to just HODL .. till they can own a Tesla car while keeping their shares in the simplest way
2. would also be a show of strength / confidence - and good PR: w/o advertising costs, same as doing without the car dealership model, removing the parasitic side of the banking system. From a conceptual viewpoint, simpler too: you want to help the mission, so allocate personal money to Tesla, and use their products too. Also make profits, nice. [OT] instead of feeding our dysfunctional societal system uber rentiers, including stock market manipulators.
3. Drawbacks: it would be a new financing model, only other negative I see is if TSLA tanks. Tho if the whole stock market crashes (a notion I have become
vaccinated immune to after believing the sky would be falling in 2009, 2010 2011 etc ) well OK the TSLA lose their value, but then Tesla still owns the car, and the owner still has to make payments. Hmm so no downside there, actually.
If that makes sense, how to entice Tesla to go and implement this is the next question.
This is all a rough draft concept, happy to hear some feedback. (I may have had a couple too many celebratory drinks.)
Full disclosure, I'm not a fan of paperwork (euphemism) and would really prefer going this route than go through the "normal" loan process, as I really don't want to sell any stonk. For my soon to be delivered Model Y.
