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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
News
Tesla already has a complete Robotaxi model, and it doesn’t depend on passenger count
That scenario was discussed during the company’s Q4 and FY 2025 earnings call, when executives explained why the majority of Robotaxi rides will only involve one or two people.
Tesla already has the pieces in place for a full Robotaxi service that works regardless of passenger count, even if the backbone of the program is a small autonomous two-seater.
That scenario was discussed during the company’s Q4 and FY 2025 earnings call, when executives explained why the majority of Robotaxi rides will only involve one or two people.
Two-seat Cybercabs make perfect sense
During the Q&A portion of the call, Tesla Vice President of Vehicle Engineering Lars Moravy pointed out that more than 90% of vehicle miles traveled today involve two or fewer passengers. This, the executive noted, directly informed the design of the Cybercab.
“Autonomy and Cybercab are going to change the global market size and mix quite significantly. I think that’s quite obvious. General transportation is going to be better served by autonomy as it will be safer and cheaper. Over 90% of vehicle miles traveled are with two or fewer passengers now. This is why we designed Cybercab that way,” Moravy said.
Elon Musk expanded on the point, emphasizing that there is no fallback for Tesla’s bet on the Cybercab’s autonomous design. He reiterated that the autonomous two seater’s production is expected to start in April and noted that, over time, Tesla expects to produce far more Cybercabs than all of its other vehicles combined.
“Just to add to what Lars said there. The point that Lars made, which is that 90% of miles driven are with one or two passengers or one or two occupants, essentially, is a very important one… So this is clearly, there’s no fallback mechanism here. It’s like this car either drives itself or it does not drive… We would expect over time to make far more CyberCabs than all of our other vehicles combined. Given that 90% of distance driven or distance being distance traveled exactly, no longer driving, is one or two people,” Musk said.
Tesla’s robotaxi lineup is already here
The more interesting takeaway from the Q4 and FY 2025 earnings call is the fact that Tesla does not need the Cybercab to serve every possible passenger scenario, simply because the company already has a functional Robotaxi model that scales by vehicle type.
The Cybercab will handle the bulk of the Robotaxi network’s trips, but for groups that need three or four seats, the Model Y fills that role. For higher-end or larger-family use cases, the extended-wheelbase Model Y L could cover five or six occupants, provided that Elon Musk greenlights the vehicle for North America. And for even larger groups or commercial transport, Tesla has already unveiled the Robovan, which could seat over ten people.
Rather than forcing one vehicle to satisfy every use case, Tesla’s approach mirrors how transportation works today. Different vehicles will be used for different needs, while unifying everything under a single autonomous software and fleet platform.
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Tesla Cybercab spotted with interesting charging solution, stimulating discussion
The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.
Tesla Cybercab units are being tested publicly on roads throughout various areas of the United States, and a recent sighting of the vehicle’s charging port has certainly stimulated some discussions throughout the community.
The Cybercab is geared toward being a fully-autonomous vehicle, void of a steering wheel or pedals, only operating with the use of the Full Self-Driving suite. Everything from the driving itself to the charging to the cleaning is intended to be operated autonomously.
But a recent sighting of the vehicle has incited some speculation as to whether the vehicle might have some manual features, which would make sense, but let’s take a look:
🚨 Tesla Cybercab charging port is in the rear of the vehicle!
Here’s a great look at plugging it in!!
— TESLARATI (@Teslarati) January 29, 2026
The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.
Now, it is important to remember these are prototype vehicles, and not the final product. Additionally, Tesla has said it plans to introduce wireless induction charging in the future, but it is not currently available, so these units need to have some ability to charge.
However, there are some arguments for a charging system like this, especially as the operation of the Cybercab begins after production starts, which is scheduled for April.
Wireless for Operation, Wired for Downtime
It seems ideal to use induction charging when the Cybercab is in operation. As it is for most Tesla owners taking roadtrips, Supercharging stops are only a few minutes long for the most part.
The Cybercab would benefit from more frequent Supercharging stops in between rides while it is operating a ride-sharing program.
Tesla wireless charging patent revealed ahead of Robotaxi unveiling event
However, when the vehicle rolls back to its hub for cleaning and maintenance, standard charging, where it is plugged into a charger of some kind, seems more ideal.
In the 45-minutes that the car is being cleaned and is having maintenance, it could be fully charged and ready for another full shift of rides, grabbing a few miles of range with induction charging when it’s out and about.
Induction Charging Challenges
Induction charging is still something that presents many challenges for companies that use it for anything, including things as trivial as charging cell phones.
While it is convenient, a lot of the charge is lost during heat transfer, which is something that is common with wireless charging solutions. Even in Teslas, the wireless charging mat present in its vehicles has been a common complaint among owners, so much so that the company recently included a feature to turn them off.
Production Timing and Potential Challenges
With Tesla planning to begin Cybercab production in April, the real challenge with the induction charging is whether the company can develop an effective wireless apparatus in that short time frame.
It has been in development for several years, but solving the issue with heat and energy loss is something that is not an easy task.
In the short-term, Tesla could utilize this port for normal Supercharging operation on the Cybercab. Eventually, it could be phased out as induction charging proves to be a more effective and convenient option.
News
Tesla confirms that it finally solved its 4680 battery’s dry cathode process
The suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Tesla has confirmed that it is now producing both the anode and cathode of its 4680 battery cells using a dry-electrode process, marking a key breakthrough in a technology the company has been working to industrialize for years.
The update, disclosed in Tesla’s Q4 and FY 2025 update letter, suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.
Dry cathode 4680 cells
In its Q4 and FY 2025 update letter, Tesla stated that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process. The confirmation addresses long-standing questions around whether Tesla could bring its dry cathode process into sustained production.
The disclosure was highlighted on X by Bonne Eggleston, Tesla’s Vice President of 4680 batteries, who wrote that “both electrodes use our dry process.”
Tesla first introduced the dry-electrode concept during its Battery Day presentation in 2020, pitching it as a way to simplify production, reduce factory footprint, lower costs, and improve energy density. While Tesla has been producing 4680 cells for some time, the company had previously relied on more conventional approaches for parts of the process, leading to questions about whether a full dry-electrode process could even be achieved.
4680 packs for Model Y
Tesla also revealed in its Q4 and FY 2025 Update Letter that it has begun producing battery packs for certain Model Y vehicles using its in-house 4680 cells. As per Tesla:
“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks.”
The timing is notable. With Tesla preparing to wind down Model S and Model X production, the Model Y and Model 3 are expected to account for an even larger share of the company’s vehicle output. Ensuring that the Model Y can be equipped with domestically produced 4680 battery packs gives Tesla greater flexibility to maintain production volumes in the United States, even as global battery supply chains face increasing complexity.
Tesla already has a complete Robotaxi model, and it doesn’t depend on passenger count
Tesla Cybercab spotted with interesting charging solution, stimulating discussion
