Tesla Motors CEO Elon Musk calls Moody's 'irrelevant'. Here's why

Most of the time, in the trend for tweeting hilarious and occasionally controversial statements, Elon Musk, today, replied to a tweet that 'Moody’s is irrelevant. But why, again?

On September 3, the CEO of Tesla Inc. gave a casual response to a series of tweets about Moody’s downgrading Tesla’s ratings. This is not the first time when Moody and Elon Musk have been in the news together. Earlier in 2018, Moody’s dropped the ratings of Tesla. This year, in April, they were planning to drop the ratings of Twitter when Musk was planning to acquire the social media platform.

Elon Musk’s tweet explained

A famous financial YouTuber Dave Lee tagged Musk, attaching an image that Alexandra Merz, a Twitter user, tweeted. Alexandra got a mail response from Rene, one of the employees of Moody’s. Rene mailed the reasons for giving low ratings to Tesla Inc. and gave suggestions about how the ratings can be upgraded for the company.

Mail body of Rene, an employee at Moody’s

She says the following in the mail response:

• There are specific considerations to be taken care of to upgrade the ratings of Tesla Inc.
• The concerns are more of a qualitative nature, not of a quantitative nature
• If Tesla will have a broader vehicle line-up, then shall it be regarded as a positive development
• Rene goes on to give suggestions to upgrade the ratings; says it is possible only if Tesla-
• Expands its global footprint;
• Maintains a global solid competitive presence;
• Improves Product Breadth;
• Consistent and Prudent Financial Policy;
• Possesses excellent liquidity, including ample cash;

According to Moody, if a company succeeds in improving its operations and diversifies it beyond its reliance on advertisements (which usually would generate around 90% of its revenue), it will be considered a positive credit.


FAQs
Q. What were people’s reactions to Elon Musk's tweet, ‘Moody’s is irrelevant?

A. Twitter users laughed off at the response, inviting a wave of users to flood the reply section. A user mockingly asked about Apple’s ratings, while others lashed out, asking if they would be teaching Musk about how to run a business. As a whole, Elon simply tweeted Moody’s reply as IRRELEVANT. That is how Musk’s tweet, once again, became trending on Twitter.

Q. What is Moody’s?
A. Moody’s Corporation is an American company specializing in financial services, which was established in 1909 by John Moody. The company got listed in the Fortune 500 Companies in 2021.