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Tesla's credit rating hovers in the double B range, indicating some level of risk associated with its stock. Historically, this assessment reflected Tesla's financial struggles during the early stages of ramping up production for the Model 3 and grappled with profitability issues that relied heavily on regulatory credits. However, in recent years, Tesla has demonstrated remarkable growth, breaking records on gross margins—averaging around 30% across all vehicle lines—and transitioning from a startup to a formidable profit generator.