Tesla Debt Gets Junk Bond Rating

By CNN

Published 05/28 2014 11:15AM

Updated 05/28 2014 11:16AM

Tesla has been hit with a rare negative review from Standard and Poor's.

S&P has rated the electric carmaker's $2.2-billion in debt as junk bonds, calling it a risky bet.

The ratings agency says its reasons for the rating were many, including Tesla's "narrow product focus" and "small scale relative to its larger automotive peers."

Tesla did not immediately respond to a request for comment on the rating.

Earlier this year, the carmaker did report improved sales but lower earnings for the first quarter and its shares are also up this year.

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