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Tesla talking about first European factory, but it won't happen soon

Tesla Motors is, as always, thinking big. The company already has a factory in California with a lot of empty space. But with Model S deliveries happening in Europe and a right-hand drive version just launched in the UK, CEO Elon Musk is already talking about building EVs in Europe. We did some math and let's just say we think any such facility is likely a long way off. The California-based company plans on eventually building a factory in Europe, Automotive News Europe says, citing an interview with Musk. But Musk says Tesla would have to sell 160,000 vehicles a year in Europe to justify such a factory. Musk sees that many sales as a given, eventually, and is planning on building an R&D center in the UK within the next two years while expanding its assembly factory in the Netherlands. "It will take Tesla a bit longer to ramp up in Western Europe than in the US" – Ed Kim But just how long might it take to get to that 160,000 figure across the Pond? Well, through the first four months of the year, Tesla sold 3,467 units of its Model S electric sedans in Europe, Automotive News says, citing research firm JATO Dynamics. Extrapolating from Tesla's first-quarter 2014 delivery numbers (the company doesn't publish monthly sales totals), Tesla sold about 8,600 Model S sedans worldwide through April. Even if Tesla speeds things up in Europe this year and approaches, say, 15,000 units, that's still less than 10 percent of Musk's goal. Even with new models, 15,000 is a long way from 160,000, and it appears that Tesla will grow slower in Europe than it has in the US. "It will take Tesla a bit longer to ramp up in Western Europe than in the US," Ed Kim, vice president of industry analysis at AutoPacific, told AutoblogGreen. "This is partially due to infrastructure issues. In the US, most potential Tesla customers live in detached single family homes, making installation of a personal charging infrastructure at home a snap. In Western Europe, many potential customers – even affluent ones – live in communal living situations like condos and apartments. And even having assigned parking does not guarantee that they would be able to install chargers there." Earlier this year, Tesla dropped the prices of its Model S in Europe because of the strengthening of the Euro. The company initially priced the Model S in the UK at almost $20,000 above the US base price.

Tesla gets its own Smartcar, but it's not what you think [w/video]

The idea may be a good one, but to call your new car-based predictive technology "Smartcar" seems like you're asking for a lawsuit from Daimler, the makers of the Smart car. But dig a little deeper and you realize that the plan could work, and whether or not Daimler bites is something we'll let the lawyers decide. In the meantime, here are the details on what the Smartcar for the Tesla Model S is all about. "Whenever you can automate something, that's where the value comes in" - Smartcar CEO Sahas Katta The idea is that your car, using the Internet and a Smartcar subscription, should be able to figure out what time you head off to work each day. Once it does, it can have the cabin at the right temperature (heated in the winter, cooled in the summer) and the battery charged for the drive by the time you're headed out the door. The automated system can also tell the charger to only slurp electrons when lower-cost nighttime electricity rates are in effect. The slightly confusing part is that the Model S already has the capability to program nighttime charging built-in and it can also be pre-conditioned remotely without the Smartcar system, you just have to tell it to do so with your smart phone (see one happy driver doing just this in frigid temperatures in the second video below). The difference with Smartcar is that your Tesla will soon be able to do all this stuff automatically. For example, the system "predicts the required range for your next journey" and "will only delay charging to off-peak hours when it can confidently determine your vehicle will have enough range available for the rest of the day." Smartcar is being designed for the Model S and the upcoming Model X, but the developers say "we're working to bring support to connected vehicles from other manufacturers in the near future." The lead developer behind Smartcar is Sahas Katta, who readers might remember from his GlassTesla project, which integrated Google Glass with a Model S. We called him up to ask why it makes sense to pay $100 a year for a Smartcar subscription when the features it offers are available in the car's default settings. Katta had obviously thought the arguments through, and told AutoblogGreen that he knows plenty of Model S owners who don't remember to set these triggers every day. "Whenever you can automate something, that's where the value comes in," he said.

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.