Hello and welcome to the Tuesday October 8th

2019 edition of Tesla Daily on official Tesla Podcast.

My name is Rob Maower.

Today we're talking about a minor upgrade from Moody's, some news on a Tesla Energy

project, and a couple other notes.

Tesla stock outperforming the markets again today, finishing up 1% to $240.5,

this compared to the NASDAQ down 1.7%.

There hasn't been any news that has specifically driven that overperformance in my opinion so if I had to guess I would say

probably just a correction to the decline that we saw after the delivery numbers last week.

The stock price is basically now where it was a couple weeks ago prior to the Elon 100,000 delivery target email back when the

fact set consensus estimate was right around 97,000 that's what Tesla delivered so I think

it can all makes sense on to the Moody's upgrade, this is a small upgrade for some of Tesla's debt.

This is for $55 million of asset-backed securities.

So this isn't the corporate family rating, which would be much bigger news, but still good news nonetheless. In this case, the assets backing those securities are leases from Tesla. This is actually very similar to an upgrade that we saw for Tesla for Moody's back in

July on about $100 million of lease-back securities. We went through that at the time, so I'll

repeat the finer details here. Moody's does give the reasoning for the upgrade in the note.

It's a little bit hard to follow though, so I'll break that down kind of piece by piece.

In the upgrade note, Moody said, quote,

the upgrades were prompted by strong residual value performance of the underlying lease contracts

and accretion of credit enhancement due to the sequential pay structure in addition to non-declining

reserve account and over collateralization."

End quote.

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