Tesla has been rated as the best new car company in decades, successfully producing a $100,000 all-electric automobile with an extensive waitlist.

However, Standard & Poor, in an unprecedented move, downgraded their bonds to “junk”:

Tesla’s narrow product focus, concentrated production footprint, small scale relative to its larger automotive peers, limited visibility on the long-term demand for its products, and limited track record in handling execution risks.

These are all factors that will be present with any car company trying to get off the ground.

The proof is in the pudding with the success of their vehicles and the fact that there is finally a viable alternative to the “Big Three” since AMC folded.

However, at least Tesla has company:

Even though the traditional U.S. automakers have now been profitable for the last four years, GM and Fiat Chrysler both still have junk bond status on their debt from S&P. Ford was only upgraded to the lowest investment grade rating last August.

This has been the case for a decade, and all American automakers are making leaps and bounds improvements from where they were.

It will be interesting to see how S&P handles Tesla’s debut of its new crossover, the Model X, and new midsize vehicle soon.