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Indiana is back with another bill to ban Tesla’s direct sales model

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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.

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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.

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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.

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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.

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“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

 

Carolyn Fortuna is a writer and researcher with a Ph.D. in education from the University of Rhode Island. She brings a social justice perspective to environmental issues. Please follow me on Twitter and Facebook and Google+

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Tesla Full Self-Driving v14 ‘Lite’ Release Notes: new capabilities and features

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(Credit: Megan Gale/Twitter)

Tesla released the Full Self-Driving v14 ‘Lite’ suite to owners of Hardware 3 or AI3 vehicles today, adding several new features to the vehicles that were once believed to be capable of unsupervised self-driving.

Now, Tesla has released this modified suite to older Tesla vehicles, adding plenty of new features and capabilities.

Here are the full release notes for the suite:

  • Distilled the intelligence from HW4 V14 into HW3. This allows HW3 to directly learn how to handle scenarios using HW4 V14 as a guide. This process unlocks the improvements that have been made to HW4 including Reinforcement Learning (RL) and offline models for HW3.
  • Improved both proactive and reactive responsiveness across a wide variety of categories including navigation handling, merges and forks, pedestrian interactions, traffic lights, and vehicle cut-in scenarios.
  • Improved general comfort in nominal scenarios through fewer false slowdowns, smoother steering and more consistent lane centering.
  • Introduced parking, unparking, and reversing capabilities.
  • Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, or at the Curbside.
  • Speed Profiles are now available at all times, to further customize driving style preference.

These improvements, according to Tesla’s Head of AI, Ashok Elluswamy, help distill the driving behavior from AI4’s v14 series into both the camera and compute configurations of AI3.

Tesla Full Self-Driving v14 ‘Lite’ for older cars finally gets released

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He added:

“It includes destination options and speed profiles on city roads, but more importantly significantly improved safety. We hope you’ll enjoy it, once the build ships wide.”

Tesla will continue to roll out the v14 Lite suite more widely in the coming weeks, the company said.

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Tesla Full Self-Driving v14 ‘Lite’ for older cars finally gets released

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tesla model 3 model y
Credit: Tesla Inc.

Tesla has finally released its Full Self-Driving v14 ‘Lite’ suite for older cars that equip the Hardware 3 or AI 3 chip, which have not been able to handle the newest versions of the company’s driver assistance software.

Tesla officially started releasing the v14 Lite suite to owners in the Early Access Program last night. The company’s Head of AI, Ashok Elluswamy, said that the rollout will continue over the next few weeks. The build distills the driving behavior from AI4’s v14 series into both the camera and compute configurations of an AI3 car.

It also includes a variety of new features that were available to AI4 cars running v14, including:

  • Start Self-Driving from Park
  • Arrival and Parking Options
  • Speed Profiles

The release is highly anticipated because those owners with AI3 vehicles were early adopters into the FSD platform and were promised that their cars would be capable of achieving Full Self-Driving.

However, Tesla CEO Elon Musk admitted during the company’s recent Q1 Earnings Call that these vehicles would not be capable of achieving unsupervised Full Self-Driving, which is what Tesla had originally said.

Owners were not pleased with this answer, or the idea that their commitment to buying the suite outright for thousands of dollars would not yield the ability to drive without operating the car. Tesla gave some solutions for this, including a discount on a new car, or an upgrade to an AI4 or AI5 self-driving computer and new, upgraded cameras.

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Tesla owners do not seem pleased with these options, as they require giving the company more money.

Nevertheless, it is important to note that Tesla came through for owners here by releasing v14 Lite before the end of Q2, something it had promised owners during the previous Earnings Call. Tesla has had trouble keeping up with timelines, but this is a big achievement for the team.

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Tesla Q2 delivery consensus confirms this long-standing theory

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Credit: Joe Tegtmeyer/X

Tesla released what analysts believe the company will report in terms of deliveries and energy deployments for Q2, but the figures seem to confirm a long-standing theory on the company’s vehicle division.

For years, Tesla was just looked at as a car company. Now that it has established itself as a powerhouse in energy, AI, and tech as a whole, the company is now less hellbent on achieving quarterly growth, on a sequential basis, at least from a major standpoint.

Tesla topped out its annual deliveries in 2023 at 1.81 million, and in the two years since, the company has reported a decrease in deliveries for the entire 12-month term both times.

With Tesla delivering 358,023 cars in Q1, a 6.3 percent increase over Q1 2025, but falling short of Wall Street expectations at 365,000-370,000 units, the narrative around vehicle deliveries and their importance continued to change earlier this year. Some might say it is convenient, but others might say it is the typical evolution of a company that continues to change over time.

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For Q2, Tesla’s delivery consensus estimates sit at 406,024 units, analysts believe. They were surveyed from Daiwa, DB, Wedbush, Cowen, Canaccord, Baird, Wolfe, BMP Paribas, Goldman Sachs, RBC, Evercore ISI, Barclays, Bank of America, Wells Fargo, Morgan Stanley, Truist, UBS, Jefferies, JPM, Needham & Co., HSBC, and William Blair.

Credit: Tesla

Tesla is also expected to report deployments of 13.8 GWh this quarter.

The change to Tesla’s overall narrative now leans less on vehicle deliveries and more on its other projects. Most notably, Tesla’s Robotaxi project has taken the priority over most of its other business ventures, and investors and the public are more concerned about the deployment of vehicles into the fleet, the operation of a driverless ride-hailing service, Cybercab production and operation, and expansion into new cities.

Tesla analyst realizes one big thing about the stock: deliveries are losing importance

This big narrative switch happened when Tesla indicated it was looking at making transportation a service by launching a ride-hailing service that will operate using Tesla’s Full Self-Driving suite. Once unsupervised operation begins, Robotaxi could be a new way for people to get around, all without a driver in their car.

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Instead, they will rely on the billions of miles Tesla has accumulated from its real-world fleet.

It is important to note that Tesla remains significant in the automotive sector, and deliveries must continue as they have for years. Tesla still has a strong automotive business and needs to execute further on all facets to keep its investors happy.

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