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Indiana is back with another bill to ban Tesla’s direct sales model
If a proposed Indiana House bill is passed, manufacturers of “all-electric vehicles” would be banned from selling directly to consumers. The bill does not direct any specific language to Tesla Motors, Inc., but the innovative vehicle manufacturer is clearly the target of the legislation. Add Indiana into the mix of Tesla’s long list of court cases pending in which car dealers and automakers claim that they, as intermediaries, have sole right to sell vehicles to consumers.
Indiana House Bill 1592
Indiana automakers have traditionally used an established network of dealers who negotiate with buyers and provide automotive repair services. These automakers are part of a large umbrella of politically influential groups. They argue that Tesla’s model allows the company to evade laws, which confers an unfair advantage to Tesla and provides no accountability to its buyers.
Here is the synopsis of the Indiana House Bill 1592.
Automobile sales requirements. Provides that a manufacturer may engage in sales directly to the public only if the manufacturer meets certain requirements. Provides that a manufacturer can no longer engage in sales directly to the public after the earlier of: (1) reaching 1,000 units in cumulative annual sales; or (2) six years after the initial dealer’s license is granted.
Additionally, Sec. 20. of the bill reads:
A manufacturer licensed under this article may engage in sales directly to the general public only if the manufacturer (1) has exclusively offered for sale to the general public in Indiana all-electric vehicles on a continuous basis since July 15, 2015; (2) has never offered for sale to the general public in Indiana a line make of new motor vehicles through a franchised motor vehicle dealer.
Tesla is the only vehicle manufacturer which meets these particular criteria. Tesla sells its electric vehicles directly to consumers, while other manufacturers like General Motors, Ford, Subaru, and Toyota sell through Indiana dealerships. If passed, the bill would severely limit Tesla’s ability as a manufacturer to sell to the public:
Subject to the expiration schedule under IC 9-32-11-12.5, a manufacturer can no longer sell to the public after the earlier of the following: (1) A manufacturer described in this section reaches cumulative annual sales of one thousand (1,000) units to the general public from its licensed location in Indiana.
The author of the bill, Rep. Edmond Soliday, a Republican, has authored or co-authored several transportation bills, including transportation infrastructure funding, automated traffic enforcement, vehicle excise taxes, and department of transportation property matters. He defeated Midwest Environmental Systems CEO Pamela Fish in the November, 2016 elections. House Bill 1592 will be heard by the Roads and Transportation committee.
Last year another Republican, Rep. Kevin Mahan, supported a similar bill that would have forced manufacturers to sell their vehicles through a dealership. “For the average Hoosier, purchasing an automobile can be daunting and a big investment,” Mahan said. “A greater variety of vehicles are now available and can be brought directly to consumers virtually anywhere in the country. In the event of a recall or malfunction, consumers should be protected.”
Arguments against limiting manufacturer sales
Tesla Motors, Inc.’s Vice President of Corporate and Business Development Diarmuid O’Connell testified against House Bill 1592. “Tesla does not operate through some kind of loophole in Indiana law,” O’Connell said. “The current law is explicit in Tesla’s ability to sell directly and, as written today, it is not broken.” O’Connell’s remarks point to current Indiana law in which an auto manufacturer is not allowed to open a store in direct competition with an affiliated franchised dealer. Tesla has no direct competition franchise dealers in Indiana and has always sold directly to consumers. O’Connell added that Tesla’s presence in Indiana has “brought only good to the consumer welfare without harming anyone — not even the dealers.”
At stake is more than a corporate tug-of-war between automakers. Tesla’s electric vehicles are at the heart of that vision for tomorrow’s consumer domestic transportation and will continue to flourish and change the way automakers in the U.S. and abroad have conducted business as usual.
If “you’re interested in promoting competition and free market principles … you recognize direct distribution, particularly for a company like Tesla, is critically important,” said Todd Maron, the company’s chief counsel, during remarks at a 2016 Federal Trade Commission event. “We don’t simply believe that [electric vehicles] represent a nice complement to gas powered cars. We believe that it’s imperative that they are replaced entirely by electric vehicles.” An end to franchising laws would advance that goal and place low-mileage gas-powered vehicles at risk of obsolescence.
Arguments in favor of limiting manufacturer sales
A coalition of free market groups, led by Americans for Tax Reform President Grover Norquist, argues that ending or restricting automotive franchising would actually decrease consumer choice. Norquist believes that reducing competition among dealers selling the same car brands hurts consumers. Franchising laws were actually created by anti-trust efforts at the Federal Trade Commission and “they sustain market competition rather than undermine it.” Last year, the group accused federal regulators of ignoring evidence that would undermine proposed measures governing automotive sales that stand to enrich what they saw as a “politically-powerful company” at consumers’ expense.
Harry Tepe, owner of Tom Tepe Auto Center in Milan, Indiana, supports legislation that would further protect consumers in the auto industry. “We just want to make sure there are protections in place for the consumers,” Tepe said. “The issue at hand is that the loophole is still open that allows any manufacturer to come in and market a vehicle and sell directly to the public without having any protections in place for the consumer.” He takes the position that dealerships are responsible for being a liaison between the consumer and the manufacturer.
Lobbying on behalf of the automotive industry
Proponents and opponents of Indiana House Bill 1592 are, in many cases, influenced by a powerful automotive lobby in the U.S. Automotive industry lobbyists use a combination of strategies to gain influence. They do a lot of research, sit down with lawmakers one-on-one, deliver messages in writing, and call Congressmen and members of the administration on the phone.
“If you’re a big company, like a carmaker, and you’re lobbying lawmakers, you’re almost like a pro sports team. You want to get the big names, the most talented, most knowledgeable people,” said David Levinthal, communications director for the Center for Responsive Politics, a non-partisan research group that tracks the money spent in the U.S. political system and its effect on elections and public policy. “So, these big companies, in the major industries, hire former Congressmen and top Congressional staffers and other high-ranking government officials to be their lobbyists, because those are the folks who know who all the other major players are and they know the ways of Washington.”
Source: OpenSecrets.org
Tesla Full Self-Driving, which is now referred to in Europe as “Tesla Assisted Driving” (TAD), is getting hit with a handful of new changes at the hands of the Netherlands’ vehicle authority, the RDW (Rijksdienst voor het Wegverkeer).
On 3 November, the RDW announced that it has assessed and approved a set of changes to Tesla’s FSD Supervised driver-assistance system. The updates introduce the official European name TAD and impose stricter controls on the system’s speed behaviour.
The new name will appear on the in-car display, in the owner’s manual, and in all other driver-facing information. The change applies to Tesla models equipped with Tesla Assisted Driving and hardware version 4.0 (HW4) or later.
Importantly, the RDW stressed that the name change does not alter the system’s fundamental operation: it remains a supervised driver-assistance feature that supports the driver in performing driving tasks. The driver stays fully responsible for controlling the vehicle at all times.
Beyond the rebranding, the most significant functional adjustments concern speed settings. Drivers will still be able to set a speed margin, a percentage by which the system may exceed the applicable speed limit when necessary for safety or traffic flow. However, the maximum allowable margin has been reduced from +50% to a maximum of +10%.
In addition, every time the vehicle is started, the speed-margin setting will default to 0% deviation, and other speed-related functions will be disabled by default. These changes will be delivered through an over-the-air (OTA) software update from Tesla.
Tesla requested the RDW’s review of these “minor changes.” After evaluating how the modifications were implemented and how the system behaves, the authority found no adverse or unintended effects on the system’s operation or the vehicle’s driving behaviour. Consequently, the existing type approval remains valid under the same conditions and for the same use; no amendment or extension of the approval is required.
The RDW has informed the nine EU member states that have already accepted its type approval—Belgium, Denmark, Estonia, Croatia, Latvia, Lithuania, Slovenia, Slovakia and Czechia—about the updates. Broader EU-wide approval is still under discussion within the European Technical Committee on Motor Vehicles (TCMV). Those proceedings remain confidential, and the RDW has declined to comment on them.
The approved changes align with earlier discussions involving German authorities, which had advocated both for clearer naming to avoid misleading drivers and for a tighter speed offset.
By formally incorporating these adjustments while leaving the core type approval intact, the RDW has cleared the way for Tesla to roll out the updated TAD software via OTA to eligible vehicles in the Netherlands and the other countries that recognise the Dutch approval. The system continues to function strictly as supervised driver assistance, with the human driver remaining the responsible party.
Tesla has released a fresh point-of-view video capturing the next-generation Roadster’s headline stunt from its October 15 unveiling, giving fans a visceral look at the car as it jumps and rotates over its siblings within the company’s vehicle lineup.
Tesla posted the video on X today with the caption “POV you’re a flying car,” and the roughly 30-second clip reveals never-before-seen angles directly attached to the Roadster. It’s really unbelievable:
The sequence reveals the uncrewed prototype firing its cold-gas thrusters, lifting off the ground, and barrel-rolling fully inverted while sailing over a staged lineup that includes a Model 3, Model Y, Cybercab, Cybertruck, and Tesla Semi.
Here’s an image of it that Tesla shared right after the unveiling event for a better perspective of what you’re looking at:
Credit: Tesla
There are also some other cool takeaways from the video, including the shift to the inverted-ramp demonstration. The Roadster uses its underbody suction-fan system to climb, then lock itself upside down on the ramp.
This generates multiple Gs of downforce, which then translates into the Roadster releasing these systems to enable a mid-air roll. The car then settles on its wheels gently as thruster vapor provides a perfect cushion.
All of the runs at SpaceX’s McGregor, Texas, test site, which is where the unveiling took place, were autonomous. Elon Musk stated this was a safety measure.
Tesla shows what Roadster drivers will see on screen before thruster activation
Tesla’s vehicle-engineering chief Lars Moravy dubbed the mid-air roll the “kickflip,” prompting Musk to quip that Tony Hawk would be proud and that the car could clear even more of the fleet. The thrusters, which use high-pressure compressed air and fast electric actuators, provide the precise, short-duration force needed for both the launch and the controlled rotation; the same hardware is intended for production versions of the higher-end Thrust and Rocket trims.
The second-generation Roadster, first teased in 2017, has been delayed repeatedly. Musk has indicated production is targeted for 2028.
While the company has yet to publish full pricing or independent performance verification, the combination of extreme acceleration, ground-effect suction, and limited flight capability has already positioned the car as one of the most theatrical EV reveals in years.
Musk has also said Tesla plans a dedicated Texas test track so future owners can experience the maneuvers themselves, far from public roads. The new POV clip simply lets everyone else feel a fraction of that experience from the car’s own cameras.
News
SpaceX’s Starfall just went from secret to storefront
SpaceX now pitches Starfall missions with 1,000 kg payloads, weeks of microgravity, and Starlink connectivity.
SpaceX has put up a dedicated commercial page for Starfall, its disk shaped reentry capsule, laying out for the first time what customers actually get when they book a flight. The page, live at spacex.com/starfall, pitches “affordable, routine access to microgravity” and invites companies to get in touch about flying manufacturing, research or testing payloads.
The specs are short and specific. Each Starfall mission carries up to 1,000 kg of payload, supplies 1 kW of power and connects through an Ethernet interface. Mission length is tailored to the customer, and the payload stays online the entire time through Starlink, which means researchers can pull data from an experiment while it is still in orbit instead of waiting for splashdown.
SpaceX is launching a secret spacecraft that could change how things are made in space
SpaceX is aiming the service at three markets. Biomedical customers are told they can grow stem cell organoids, replacement tissue and layered biomaterials. Pharmaceutical companies are pitched on protein and small molecule drug crystals, which form smaller and more uniform shapes without gravity driven convection. Materials science rounds out the list, with semiconductors and other next generation materials grown in vacuum and microgravity.
The page also makes clear which rocket SpaceX is counting on. “By launching on Starship, Starfall brings a reliable and scalable cadence previously unavailable to the market,” the company wrote, contrasting weeks of continuous microgravity with the seconds offered by drop towers and parabolic flights. No price or first operational flight date is listed.
The commercial push is a sharp turn from how Starfall started. SpaceX said almost nothing about the capsule ahead of its first flight in June, and nearly everything known came from FAA and FCC filings describing a disk about 10.2 feet wide and 2.5 feet tall that can return 2,200 pounds of cargo. By its second flight on the Bandwagon-5 rideshare in October, Starfall was listed by name on the mission page, though SpaceX still did not say what it carried.
Customers appear to be lining up. SpaceX said in its third quarter results that it signed three commercial Starfall missions during the quarter. On the earnings call, President Gwynne Shotwell described the capsule as providing “routine relatively low cost access to microgravity environments for scientific research, including improving our understanding of diseases like cancer and diabetes,” and said the three new missions would fly on Starship.
The branding effort extends past the website. SpaceX added a Starfall T-shirt to its online store on Monday as part of a batch of new merchandise, giving the program a place next to Starship, Starlink and Starshield in the company’s lineup.
The move also puts SpaceX in more direct competition with companies it launches. Varda Space Industries, which has built much of the in-space manufacturing market so far, flew its W-Series 7 capsule on the same Bandwagon-5 mission as Starfall in October. Varda’s capsules are roughly three times smaller than Starfall, and SpaceX controls the ride to orbit for both.
Starfall’s near term cadence depends on Starship. SpaceX is preparing for Flight 15 after completing static fires of Ship 42 and its Super Heavy booster in late October, and is aiming to catch both stages with the launch tower on that flight.
Tesla Full Self-Driving gets hit with some adjustments in Europe
Tesla shows off Roadster ‘kickflip’ over vehicle lineup in crazy new POV video
