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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.

Elon Musk says yes to The Oatmeal's $8M request for Nikola Tesla museum

Matthew Inman is known for his lengthy, often wordy online comics called The Oatmeal. He's also a huge fan of Nikola Tesla, and helped gather $1.37 million via crowdfunding in 2012 to buy up Tesla's laboratory and set the stage for a Tesla museum, the Tesla Science Center at Wardenclyffe. It was such an Internet hit that Tesla Motors CEO Elon Musk even chipped in $2,500 and Tweeted that he "will do more in the future." Well, Inman is getting ready to call in that favor. Yesterday, The Oatmeal published a glowing review of sorts on how great the all-electric Model S is (slightly NSFW). In it we learned that Inman is bonkers in love with his EV, calling it his "intergalactic spaceboat of light and wonder" and saying the acceleration is "freaky." He adores the door handles, the frunk, the advanced powertrain and pretty much everything else. In fact, part one is so positive it reads like an over-the-top Tesla advertorial. But then comes part two, where Inman gets down to business. Musk simply said, "I would be happy to help." See, the $1.37 million was used to buy Nikola Tesla's property but was not enough to actually, you know, build the museum. To do that, the Science Center needs another $8 million. And guess who has those kinds of funds? How about a billionaire who is using the Tesla name and is already a fan of the museum idea? That's right, one Elon Musk. And part 2 of The Oatmeal's comic is an argument for why Musk should fork over the $8 million to help pay for the museum. Inman says it is, "A polite request from a humongous fan" and adds that, "You owe us nothing, and you've done nothing but good things in the name of Nikola Tesla. But the fact remains: Tesla Motors, a company now worth billions, is using Nikola Tesla's name, and they're using his technology, and all we want in return is a little bit of help." Inman says that $8 million is "the bare minimum to build, staff, and maintain a Nikola Tesla Museum," and that the number was reached after getting "countless estimates from site planners, architects, and museum curators from all around the world." Something like $6 million would be good, he writes, but, "any less than $8M would pretty much leave us in the same boat we're in now." Tesla hasn't offered up an official statement, but on Twitter, Musk simply said, "I would be happy to help." Not sure what that means, exactly, but it's probably not going to make Inman hate his car any time soon.

Recharge Wrap-up: Mirai earns Toyota "Most Innovative" honor, Tesla cold-weather range

A Tesla driver has graphed the effect of cold weather on the driving range of his Model S. Rob at Teslarati kept track of the amount of miles driven and energy used and mapped that against temperature readings to find how the colder temperatures affect efficiency. The results were an average of 10 miles of range lost for every 10-degree drop in temperature. Also, he calculated that drivers will lose about 25 percent more range when the roads are slippery. Read more at Teslarati. Albany Engineered Composites (AEC) is teaming with automotive engineering and consulting company Ricardo to provide lightweight components to the automotive industry. AEC produces composites for the aerospace industry, and having proven themselves in that field, they show promise for helping automakers make their cars lighter and more efficient without sacrificing structural integrity. "The agreement announced today is excellent news for our global automotive customers as we work to find further weight reductions in vehicles to meet future CO2 reductions," says Ricardo CEO Mark Garrett. With carbon composite prices expected to drop, Garrett believes this is an "attractive solution" for structural components. Read more at Ricardo's website. Toyota Motor Europe (TME) wants to recover all of its hybrid batteries for remanufacturing. TME currently recovers 91 percent of Toyota and Lexus batteries at the end of the vehicles' lives through dealerships, and is now working with independent end-of-life vehicle treatment operators to recover the rest. Beyond just being recycled, Toyota is looking into remanufacturing batteries for other vehicles or for stationary energy storage systems. Read more in the press release below. Fast Company Magazine has recognized Toyota as one of the 50 Most Innovative Companies for 2015 for its Mirai fuel cell sedan. "Toyota plans to do for fuel cells what its Prius did for hybrids: make them ubiquitous and top of mind for environmentally conscious consumers," says Fast Company. The article also notes that Toyota has also made its fuel cell patent public and invested in hydrogen fueling infrastructure. Toyota is ranked number 18 in the Most Innovative list, just below Tesla. Read more at Fast Company.