Tesla’s unique business model allows them to sell vehicles directly to consumers through both retail locations and Tesla’s online design studio. Direct-to-consumer sales of its vehicles have led to some turbulence with existing car dealerships in many states, including Utah, Louisiana, Connecticut, Texas and Michigan. New Jersey allowed Tesla to open direct sales in the state in 2015, but with conditions. New Jersey’s legislation limited the number of direct-to-consumer dealerships per manufacturer to four stores and required at least one service center in the state. Tesla CEO Elon Musk once compared local car dealers to a mafia protection racket, stating in a Tesla blog post, “The rationale given for the regulation change that requires auto companies to sell through dealers is that it ensures ‘consumer protection’…Unless they are referring to the mafia version of ‘protection’, this is obviously untrue.”
Tesla recently launched a lawsuit to overturn a sales ban put into effect in Michigan in 2014 that prevents the Elon Musk-led electric carmaker from selling directly to consumers within the state. The greatest opposition against Tesla’s plea for direct sales in Michigan comes from both auto dealers and manufacturers, who argue that Tesla disrupts the traditional franchise dealership model.
Courtesy of Teslanomics.co
Ironically, Michigan and Texas which bans Tesla’s direct sales model have public pensions that are significant investors in the Silicon Valley company. However, that isn’t the only financial interest states have in Tesla. All states in the US rely heavily on sales tax to generate revenue. States without stores are forcing owners to purchase and service their vehicles out-of-state, missing out on sales tax in the process, a major revenue loss.

Source: Bloomberg, September 2016
Bill Wolters, of the Texas Automobile Dealers Association, is claiming that the introduction of Tesla into the Texas car market would “reduce competition”, and will incur costs for Texas. However, this argument assumes that dealers are creating added value for their consumers, and if that argument holds, then dealers should be able to keep customers in the market after Tesla enters. Additionally, Tesla is competing against other manufacturers and not franchises.

Racecar driver and environmental activist Leilani Munter protest’s North Carolina’s ban on Tesla’s direct sales model (Photo: Medium/Leilani Munter)
Out of a presumed 400,000 reservations for the Tesla Model 3, it is estimated that roughly half originate from the United States, according to the distribution of early Model 3 reservation data from Model3Tracker.info. Using a loosely estimated assumption of Tesla Model 3 reservations originating from banned states via Model3.ocasual.com, we get the following numbers: 1,250 in Louisiana, 2,980 in Connecticut, 3,076 in Utah, 15,670 in Texas, and 4,230 in Michigan.
The sales tax for Michigan is 6%, Louisiana is 9%, Connecticut is 6.35%, Utah is 4.7%, and Texas is 6.25%
This equates to a loss of $8,883,000 for Michigan, $3,937,500 for Louisiana, $34,278,125 for Texas, $6,623,050 for Connecticut, and $5,060,020 for Utah. That’s a total of $59,791,695 in loss revenue, which does not factor in current sales of Model S and Model X.
States with Tesla Ban | Sales Tax | Estimated Tesla Model 3 Reservations | Projected state revenue loss (in dollars) |
Louisiana | 9% | 1250 | $3,937,500 |
Texas | 6.25% | 15670 | $34,278,125 |
Michigan | 6% | 4230 | $8,883,000 |
Connecticut | 6.35% | 2980 | $6,623,050 |
Utah | 4.70% | 3076 | $5,060,020 |
Navigant Research believes that sales electric vehicles, including hybrid/plug-in hybrid, are set to comprise 9 percent of total vehicle sale by 2025. Currently, EVs make up 3% of total vehicle sales, but the number in 2016 saw a 36 percent increase in sales in the US alone. In 2016, 4,500 EVs were sold in Texas, 2,470 in Michigan, 270 in Louisiana, 1,452 in Connecticut, 1,132 in Utah, and 70 in West Virginia. Texas, Connecticut, and Michigan ranked among states with some of the highest EV sales. Of electric vehicles sold total in 2016, the Tesla Model S was the leading electric vehicle with ringing in at 29,156 vehicles. The Tesla Model S also outsold its entire class of vehicles, combined. Tesla is expecting high demand for Model 3, which will start at roughly half the cost of the Model S.

Source: Topspeed.com
There are currently 223,319 estimated Model 3 reservations in the United States, far greater than the sales of comparable vehicles. The BMW 3 and 4 series which sold around 106,000 vehicles in 2016 and the Mercedes C-Class sold around 77,000 vehicles in 2016. Tesla CEO Elon Musk is expecting to produce 500,000 vehicles in 2018 and tens of thousands this year (Tesla hasn’t released Model 3 production guidance for 2017). Musk’s expectations could make the Model 3 the highest selling vehicle in its class in both 2017 and 2018. The states that ban Tesla dealerships not only miss out on sales tax revenue from Tesla vehicles but in turn create an inconvenience for residents. By instating a direct sales ban on Tesla before the launch of Tesla Model 3, states will not only lose millions of dollars in sales revenue per year but also interfere with and disrupt free market competition and consumer activities.
Feature image courtesy of Delanman via Twitter.
News
Tesla Robotaxi vs. New York Taxi: Why the Yellow Cab has a lot to lose
Tesla Robotaxi could spell the beginning of the end of the New York City yellow cab.

Tesla appears to be on its way into the Big Apple, and a traditional Yellow Cab in New York City might be a thing of the past in the near future.
As Tesla continues to put an immense focus on the rollout of its Robotaxi platform, it is evident that driverless ride-hailing modes of transportation could truly be the way that many choose to get around. This is especially prevalent in cities like New York, where many people do not own cars. Instead, they choose to walk to hail a cab.
Tesla Robotaxi is headed to New York City, but one thing is in its way
But the limited number of medallions available for taxi drivers in New York City, as well as several other points of emphasis, seem to show the future is here and yellow cabs might soon be a thing of the past.
Instead of working tirelessly to pay off the debt from medallions, entrepreneurs could soon just buy a Tesla and have it work autonomously in New York City. Tesla executives have mentioned figures as high as $50,000 per year in terms of passive income from Robotaxi operation.
That is just the tip of the iceberg, and Robotaxi presents not only one but at least five distinct advantages over the traditional cab platform. With Tesla starting to seek employees to operate Robotaxi rides in New York, according to recent job postings, New York City cabs should prepare for the disruption Tesla could potentially cause.
Lower Operational Costs and Cheaper Fares
Uber and Lyft have already undercut the costs of New York City taxis, but Robotaxi is starting to undercut even those ride-sharing programs in Austin, Texas.
In terms of how much cheaper Robotaxi will be than cabs, it is an exponential measurement over time. Robotaxi will not require salaries, benefits, or tips, and the cost of Robotaxi could end up being just a fraction of what the same ride would cost in a cab.
This feeds right back into medallion expenses and union wages: even buying a Tesla in the next few years that has the capability to operate as a Robotaxi will be a fraction of what medallions cost, which is sometimes $200,000.
Availability and Scalability
Cabs are available at all hours of the day, but at certain times, they are less available.
Robotaxis can technically operate without breaks, other than charging. Tesla has an immense focus on scaling its Robotaxi platform anyway, and once it is available for the public to use in their personal cars, Model Ys and Cybercabs could be roaming the streets of the five boroughs with more reliability and lower wait times than traditional cabs could ever offer.
This is an issue that is even more relevant in smaller cities or less congested portions of New York.
Safer and More Efficient Rides
Tesla’s Full Self-Driving technology has reported recent safety figures that are ten times less likely to be involved in an accident than a human. Tesla releases a Safety Report for each quarter that proves its safety against human drivers.
As Full Self-Driving continues to advance, it will get better. Riders who want a stable and safe ride could seek Robotaxi instead of going with a human driver. This is something that we’ll likely see more of in the future as sentiment on autonomous driving grows.
Trust in autonomous vehicles has increased substantially over the past ten years. In 2015, surveys showed that trust in autonomous vehicles was low, with only 23 percent of Americans showing that they’d ride in a driverless car.
In 2021, another study performed that asked the same question showed 57 percent of adults would try an autonomous car for their travel.
Seamless App Integration and User Experience
Taxis are not always the most entertaining to ride in, and sometimes they are even more difficult to get a ride in. Robotaxi has already shown to be an incredibly user-friendly experience, with riders being able to choose what temperature the cabin is and what music they want to listen to in the cabin.
The addition of a rear screen also allows riders to choose from a selection of games or YouTube videos in the car.
One thing going for @robotaxi: the rear screen is seriously really good. Very responsive screen and well designed UI. Your music app is synced from your Tesla account and you can easily control music, watch videos, etc.
Blows away Waymo’s entertainment options, weird Google… pic.twitter.com/fep2yIGzWq
— Ethan McKanna (@ethanmckanna) July 19, 2025
Hailing a vehicle was basically resolved with the use of Uber and Lyft. Robotaxi is just as good, if not better, from an app standpoint, especially as the in-car climate is able to be adjusted from the Robotaxi app.
Music from one Robotaxi will continue to play in your next one, too. It’s a small luxury, but it’s a feature that is an improvement over a traditional taxi.
The Push for Sustainability by New York City
New York is pushing for a city-owned fleet of all-electric vehicles by 2027.
Its green initiatives, including the Green Rides Initiative, have pushed the city’s rideshare trips to be conducted by either zero-emission or wheelchair accessible vehicles by 2030.
Tesla Model 3 taxis drive NY’s resolution for more all-electric yellow cabs
The focus by consumers to use green or zero-emission vehicles could also steer right into the direction of Tesla Robotaxi, as none of the vehicles in the Robotaxi fleet will be anything but all-electric Teslas.
Carbon neutrality is a goal of the City and its residents. Moving forward, we could see these programs start to put immense pressure on the yellow cab, which could eventually be a thing of the past.
News
Tesla plans to use Unreal Engine for driver visualization with crazy upgrade
This could change the way Driver Visualization looks for Tesla owners.

Tesla looks to be planning a major upgrade to its driver visualization for Autopilot with a crazy upgrade from its current version.
Tesla’s driver visualization appears on the center screen and shows the vehicle, its surroundings, and, when it is operating on Autopilot or Full Self-Driving, shows the route of travel.
It has improved over the years, and even includes things like pedestrians, pets, and the shapes of other vehicles. It also helps with manual driving because it can be a good representation of your surroundings when trying to change lanes or merge in traffic.
However, it appears Tesla is planning a pretty substantial upgrade with the
Coding found in the 2025.20 firmware by Tesla hacker greentheonly showed the company is planning to utilize Unreal Engine for Autopilot visualization. He said the one Tesla currently uses is “godot-based.”
Hm, I did not notice it at first, but it looks like Tesla is adding unreal-engine based AP viz (the one you see today is godot-based).
The binaries are already shipping starting from firmware 2025.20 only on amd-based s and x cars for nowtime to see if that could be activated…
— green (@greentheonly) August 8, 2025
Unreal Engine is a 3D computer graphics game engine that was developed by Epic Games, the developer of the popular third-party shooter game Fortnite. It was first released back in 1998, and the most recent version is Unreal Engine 5. The sixth version is in development, and it could be out in 2027 or 2028.
However, Tesla could use it for a more realistic representation of vehicle surroundings. It would undoubtedly improve driver visualization, creating a smoother and freer-flowing depiction of what is outside of the car.
Tesla’s Autopilot visualization could look like this with Unreal Engine https://t.co/OOKNpeDM6F pic.twitter.com/mnjaxW36tO
— The Tesla Newswire (@TeslaNewswire) August 13, 2025
News
SpaceX is rolling out a new feature to Starlink that could be a lifesaver
Starlink now has a new Standby Mode that will enable low-speed internet access in the event of an outage.

SpaceX is rolling out a new feature to Starlink that could be a lifesaver in some instances, but more of a luxury for others.
Starlink is the satellite internet service that Elon Musk’s company SpaceX launched several years ago. It has been adopted by many people at their homes, many airlines on their planes, and many maritime companies on their ships.
It has been a great way for customers to relieve themselves of the contracts and hidden fees of traditional internet service providers.
Now, Starlink is rolling out a new service feature on its units called “Standby Mode,” which is part of Pause Mode. The company notified customers of the change in an email:
“We’re reaching out to you to let you know the Pause feature on your plan has been updated. Pause now includes Standby Mode, which comes with unlimited low-speed data for $5.00 per month, perfect for backup connectivity and emergency use. These updates will take effect in 30 days. All of your other plan features remain the same. You are able to cancel your service at any time for no charge.”
SpaceX did not define how fast these “low speeds” will be. However, there are people who have tested the Standby Mode, and they reported speeds of about 500 kilobytes per second.
The mode is ideal for people who might deal with internet or power outages, but still need to have some sort of internet access.
It could also be used as a backup for people who want to stay with their ISP, but would like to have some sort of alternative in case of an outage for any reason.
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