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Tesla's financial turnaround is further reinforced by its substantial cash reserves, estimated at roughly $20 billion, and a minimal debt footprint of just $1.4 billion. The company's net income projections for 2022 are optimistic, with expectations of at least $10 billion in net profit, reflecting a significant improvement over its earlier financial position.
Such robust financials are pivotal in the potential upgrade of Tesla's credit rating. As Tesla's balance sheet continues to strengthen, the possibility of moving into the "blue-chip" category grows more tangible. Achieving a higher credit rating would open the floodgates for large institutional funds, which are typically restricted from investing in lower-rated stocks, leading to increased liquidity.