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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.

Tesla behind lobbying push to ditch side mirrors

The National Highway Traffic Safety Administration passed a law yesterday forcing new cars in the US to come with standard backup cameras by May 2018, and if Tesla has its way, this could be just the beginning of changing how motorists see out of their vehicles. The electric car manufacturer has teamed up with the 12-member Alliance of Automobile Manufacturers lobbying group (which represents major companies like General Motors, Toyota and Volkswagen) and filed a petition on Monday asking NHTSA for permission to replace sideview mirrors with cameras.
Currently, side mirrors are required on cars in the US, and they can't legally be replaced by camera technologies filling a similar role. The petitioners' chief argument is that sideview mirrors add drag and decrease fuel economy. According to Automotive News, Tesla founder Elon Musk has been lobbying for laws that allow automakers to use sideview camera systems exclusively for the last two years, but claims it's nearly impossible for a single person to change the regulations.
Sideview cameras have been on concept cars for decades, but augmenting external visibility with cameras and sensors has been a growing trend in production automotive technology over the last five years or so. Nissan uses its Around View Monitor to supplement mirrors with a bird's eye composite view of the vehicle during tight maneuvers, and the LaneWatch system from Honda displays a rear-facing passenger-side view to eliminate blind spots during lane changes. Tesla's early Model X concept (pictured above) had small pods on the side with cameras mounted in them, but more recent versions have switched to conventional mirrors.

Aftermarket carbon fiber rear spoiler for Tesla Model S is priced accordingly

Need a little something extra for your Tesla Model S? Robert Strohmeyer and EV Autosalon have you covered. The item is a thin rear spoiler, and it only costs $1,200. Strohmeyer sent AutoblogGreen an email about his new aftermarket parts company focusing on full EVs and plug-in hybrids. "Naturally," he wrote, "I started with the Tesla Model S" and the spoiler is the first product he's offering. EV Autosalon claims the very first of its EVA fiberglass spoilers was shipped last week and that more will go out next week. A few things to note. The spoiler – available in both fiberglass and carbon fiber - comes unpainted "so that [it] can be painted and installed by your local body shop of choice to match your Model S perfectly." The spoiler is meant to be attached to your Model S with 3M industrial strength body molding tape and will come with templates so that you can line up the spoiler with the edges of the trunk - you don't want this one to get put on crooked. The $1,200 price tag is for the matte or glossy carbon fiber spoilers. The fiberglass version will set you back $600, well below the cost of the official carbon fiber rear spoiler for the Tesla Roadster ($1,700). If you want an official rear spoiler for the Model S, you need to order it when you order the car (there is currently no option to buy one in the accessories section of company website), and Tesla will only put it on the $85,900 85-kWh Performance model. Tesla says the official spoiler will, "improve high speed stability" and will "reduce lift at the car's rear by 77% at highway speeds, with minimal range impact." Strohmeyer isn't making any performance claims about his aftermarket spoiler, but some members of the Tesla Motors Club like the look of it. Do you?