2021 Tesla Model 3 Standard Range Plus 4dr Sedan on 2040-cars

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Tesla dropped to 'junk bond' status by S&P

While Tesla Motors' Model S is a piece of pristine, well-designed metal, the company's bonds have now been rated as "junk." But maybe that's better than the other way around. We'll let the investors decide. Standard & Poor's gave Tesla's bonds a 'B-' rating this week, indicating so-called "junk status," Automotive News says. That means investors are saying the company has a relatively high chance of defaulting on its loans. S&P cites Tesla's short history, competition from some very large companies and relatively narrow product line (none of which are new facts), and estimates that investors would be able to recover 30 to 50 cents on the dollar should the company default. Tesla has been issuing billions of dollars in bonds this year to raise funds for its planned gigafactory somewhere in the southwestern US, a project that Tesla estimated will cost $5 billion ($2 billion from Tesla, $3 billion from partners). Tesla said earlier this month that it took a first-quarter loss of $49.8 million, compared to year-earlier net income of $11.2 million. While revenue rose 10 percent to $620.5 million, selling and administrative costs more than doubled while research and development costs jumped 48 percent. And while Tesla's share price has doubled during the past 12 months (it's at around $209 today), the company's liabilities doubled to $3.52 billion from the beginning of the year to the end of the first quarter. There's a short video on the situation from CNN Money below.

Recharge Wrap-up: No Tesla Gigafactory deal with California, BMW i3 recalled

Before the Nevada announcement was hinted at, a deal to incentivize a Tesla Gigafactory in California fell through. Tesla was looking for around $500 million in incentives, which the California Governor's Office of Business and Economic Development was willing to offer in tax breaks along with making the permit and environmental processes easier. According to Senator Ted Gaines, there still remained "a gap between what Tesla wanted and what California was willing to offer," the contents of which were undisclosed. California could still be chosen for another of Tesla's battery plants, should those ever materialize. Read more at The Desert Sun. The California Air Resources Board (CARB) will consider allowing a bit of compliance flexibility to its Zero Emission Vehicle (ZEV) regulations for some automakers. CARB will hold a hearing to discuss giving intermediate volume manufacturers (IVMs) - carmakers that do between 4,501 and 60,000 new vehicle sales in the state - some leniency catching up to the larger manufacturers when it comes to clean vehicle production. The ZEV regulation changes take into account the amount of revenue IVMs have available for developing the cars, particularly plug-in hybrids. Read more at Green Car Congress or see the notice from CARB here. Certain units of the BMW i3 are subject to an airbag recall. For cars built March 31, 2014, the passenger airbag inflator may have been assembled incorrectly, which could keep it from deploying when needed. Owners will be notified by BMW, and the problem will be fixed for free. The recall also affects certain 2014 Mini Cooper models. Learn more at the NHTSA website. The Renault-Nissan Alliance is providing 200 electric vehicles to telecommunications company Orange in France. The cars, which will include the Nissan Leaf, Nissan e-NV200, Renault ZOE and Renault Kangoo ZE, will be used mostly for carsharing. Through the program, Orange employees can book a car for work or personal travel using a smartphone. The Alliance will also help Orange install charging stations for the new cars. The addition of the EVs to the fleet will help Orange achieve its goal of reducing its carbon footprint by 20 percent by 2020. Read more in the press release, below. Jianghuai Automobile Company (JAC) is delivering its first 100 EVs to the US. The shipment is part of a larger order of 2,000 cars to be sold by GreenTech Automotive in the US market. Read more at ECNS.

Recharge Wrap-up: Porsche Mission E charging for Tesla, net zero energy Toyota dealership

Porsche has confirmed that its Mission E charging infrastructure will also work with Tesla vehicles. The ultra-fast, 800-volt charging system will recharge the Mission E to 80 percent in about 15 minutes, and will also service new EVs from Volkswagen and Audi. Porsche CEO Oliver Blume told Top Gear that development of the charging infrastructure "sounds easy but getting the details agreed is hard. We already have the clear technical concept. It can even work with Teslas, with an adapter." Dieter Zetsche, Head of Mercedes-Benz, also tells Top Gear that they are "in talks" with Porsche regarding charging infrastructure. Read more at Top Gear, or from Electrek. An Oregon Toyota dealership is set to be the world's first net zero energy automotive dealership. The newly constructed, LEED Platinum certified Toyota of Corvallis produces more energy than it consumes, for which it is expected to receive Net Zero Energy certification. The 34,800-square-foot building is equipped with enough solar panels to produce as much energy that the dealership will use, with excess being put back into the grid, which will help during hours of peak demand. Toyota Motor Sales regional manager Steve Haag calls Toyota of Corvallis, "a first-of-its-kind template for the auto dealership of the future." Read more from Toyota. Valeo has introduced a new 48-volt hybrid system. The 48V e4Sport, as it is called, uses a 48-volt battery, electric starter-generator, electric supercharger, and eRAD electric rear axle drive for all-wheel drive. It maximizes regenerative braking and stores that energy for increasing torque with the starter-generator, and increasing acceleration with the electric supercharger. The system also supports all-electric driving modes. Valeo says the system is applicable across all vehicle segments, and works with both gasoline and diesel engines. Read more at Green Car Congress. PSA Group has created its own mobility solutions brand, called Free2Move. Free2Move will handle programs like car sharing, connected services, corporate fleet services, and affordable leasing programs for Peugeot, Citroen, DS, and other PSA partners. "For the PSA Group, mobility means not only making and selling excellent cars, but also offering a full range of mobility solutions," says PSA Group VP of Mobility Services Gregoire Olivier.