If you were wondering which junk-rated company would be the first to reach a trillion-dollar market capitalization, your wait is over. It’s Tesla Inc. 

The automaker’s debt may still be considered speculative-grade, but its stock passed US$1 trillion mark on Monday, according to data compiled by Bloomberg. Tesla shares, which have been on a tear as consumers around the world shift to electric vehicles, touched a record high of US$998.74 earlier, jumping 9.8 per cent for the best intraday performance since March 9. That pushed the company’s market capitalization above US$1 trillion based on about a billion shares outstanding as of Oct. 21. 

“The US$1 trillion mark leaves Tesla creditors with unprecedented equity cushion for a junk-rated issuer,” said Bloomberg Intelligence credit analyst Joel Levington.

The valuation milestone comes after S&P Global Ratings on Friday upgraded Tesla’s long-term rating to BB+ from BB.  The ratings agency said it expects the company’s deliveries and earnings to remain strong over the next few quarters.

“S&P’s recent upgrade of Tesla has the auto manufacturer knocking on high grades door, and we expect the company to cross over to investment grade within the next 12 months, opening up the potential for further financial product offerings,” Levington said.