Connect with us

News

Tesla Motors 2015 Strategy to Fight Dealer Laws, Stay Aggressive

Published

on

Source: Associate Press

Would Tesla ever build cars in Michigan? Musk: “It’s not out of the question. Maybe Michigan shouldn’t stop us from selling cars here.” (Image: Courtesy of Associate Press)

I was following the Elon Musk press conference from the International Car show via the Detroit Free Press on Tuesday afternoon and a whole lot of topics were addressed, including the Model X, dealership strategy, China sales, the Gigafactory and GAAP financials, among others.

During the interview portion of the event, Musk had the whole room laughing when he said (paraphrasing) “if I keep talking, we’ll be out of business very soon,” referring to Tesla’s stock sell-off once he said China sales numbers for December were down.

Musk also stated that “Tesla can make a few million cars a year by 2025.” If that happens, one would presume Tesla will be selling in all 50 states by 2025.

Musk responded to a dealership question and made a point of stating, “we need to have our own stores first,” before selling via dealerships. Musk’s subtle insistence on having his own stores, at first, didn’t make impression but could signify its stance with state legislators going forward.

Today, Rep. Tony Guerrera, a Democratic co-chairman of the Legislature’s Transportation Committee of Connecticut, proposed a new bill to allow the Tesla Motors to sell directly to the consumer. A supporter of that bill, Republican Art Linares, says,” “I think that Tesla is an innovative business. They’re creating jobs across the country. It’s a great vehicle. Just by passing this bill, we can create jobs here in Connecticut.”

-

I guess talk is cheap, but Pennsylvania opened its doors to five new Tesla stores last year and New Jersey has a stalled bill, A3216, which “would permit certain zero emission vehicle manufacturers to directly sell motor vehicles to consumers and requires them to operate service facilities.”

Maybe Chris Christie could tip the scales (sorry...could't resist) toward removing these antiquated laws.

Also noticeable in the Connecticut Tesla bill article is Tesla's lobbying or rebuttal to the state dealership association. It's usually non-existent in articles or maybe a blog post from Elon Musk.

In the article, James Chen, vice president for regulatory affairs at Tesla, says, "This is Tesla trying to introduce new technology, frankly what we believe to be a superior technology. The dealers should be embracing the idea of an American company trying to come in.”

Chen also counters the dealer association's assertion of what if Tesla goes out of business? Where will the Tesla owners go for service? According to the article, "Chen called it almost laughable that dealers are pitching themselves as the consumer’s advocate, saying there’s no guarantee they will remain in business."

So am I reading into his statement about "more of our stores" in Detroit and a more aggressive company response in Connecticut? Not sure yet, but as 2015 progresses, senators and ambitious representative might see the light in making the right call or aligning themselves with their principles, instead of ancient dealer laws.

Advertisement
-

And, I'll leave you this from yesterday's conference:

Reporter: Would Tesla ever build cars in Michigan?

Musk: "It's not out of the question. Maybe Michigan shouldn't stop us from selling cars here."

Related Content:
God Save the Luddites, Anti-Tesla Opponents Exposed

"Grant Gerke wears his Model S on his sleeve and has been writing about Tesla for the last five years on numerous media sites. He has a bias towards plug-in vehicles and also writes about manufacturing software for Automation World magazine in Chicago. Find him at Teslarati

Advertisement
Comments

Elon Musk

SpaceX just cleared a key FCC hurdle in its fight with Verizon and AT&T

The FCC accepted SpaceX’s bid for Grain’s 800 MHz spectrum, opening review for Starlink Mobile.

Published

on

By

A hand holds a smartphone displaying the Starlink Mobile app interface showing a strong “Connected – Direct to Cell” signal, with a Starlink satellite beaming connectivity signals down to Earth from orbit. The background features the planet’s night side glowing with city lights against the curve of the atmosphere, set above a scenic twilight landscape.

The Federal Communications Commission has formally opened its review of SpaceX’s plan to buy a nationwide block of 800 MHz spectrum from Grain Management, moving Starlink Mobile one step closer to operating as a full U.S. wireless carrier.

In a public notice issued Tuesday, the FCC’s Wireless Telecommunications Bureau said it accepted for filing the applications to transfer control of two Grain license companies, Prism License Co. 1 and Prism License Co. 2, to Starlink Spectrum Holdings, a wholly owned SpaceX subsidiary. The deal covers 546 paired licenses across 3,224 counties, reaching roughly 100% of the U.S. population in all 50 states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands. The proceeding sits under WT Docket No. 26-313.

Acceptance is not approval. It means the applications cleared an initial review and the public comment window is now open. Comments and petitions to deny are due December 1, and oppositions are due December 8. The bureau also said the conditions attached to Grain’s July purchase of the licenses from T-Mobile, which require rapid buildout for terrestrial and direct to device service, would carry over to SpaceX if the transfer is approved.

SpaceX announced the agreement on October 8, saying the new airwaves would let Starlink Mobile’s signal reach phones inside buildings, something its 2 GHz spectrum from EchoStar cannot do as well. The portfolio includes up to 14 MHz of paired spectrum in the 817 to 824 MHz and 862 to 869 MHz bands, which most existing phones already support. Elon Musk called it “the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America.”

According to the filing, SpaceX would hold up to 89 MHz of total spectrum in any given market after the deal closes, including up to 14 MHz below 1 GHz. That is far under the 385 MHz threshold the FCC uses to flag a transaction for closer competitive scrutiny, and well short of the roughly 300 MHz each of AT&T, Verizon and T-Mobile holds.

Advertisement
-

Tuesday’s notice does not decide how SpaceX can use the spectrum from orbit. A separate application SpaceX filed on October 27 seeking authority to provide supplemental coverage from space on the same frequencies, along with related waiver requests, is still pending before the commission.

The ground network is already taking shape. Last week, SpaceX picked Qualcomm to supply radios, baseband units and software for a nationwide 5G build, with deployment across tens of thousands of U.S. cell sites starting in 2027. The FCC also voted on October 29 to advance a proposal opening another 482 MHz to direct to device service, though AT&T, Verizon and T-Mobile hacritive pushed to strip nearly 300 MHz from it. SpaceX President Gwynne Shotwell has said service on SpaceX’s own airwaves is targeted for early 2028.

Continue Reading

Cybertruck

Tesla upfitter offers to keep Cybertruck alive

Published

on

Credit: Unplugged Performance

A Tesla upfitter has offered to take over Cybertruck lines from the company in a last-ditch effort to save the all-electric pickup from being completely canceled in the middle of 2027.

Unplugged Performance, the Hawthorne, California-based Tesla aftermarket specialist, has publicly offered to take over Cybertruck production from Tesla, funding the effort “through a consortium of investors.”

The proposal comes as Tesla prioritizes its Cybercab Robotaxi program and prepares to wind down Cybertruck assembly at Gigafactory Texas around mid-2027.

Founded in 2013 by Ben Schaffer and located adjacent to Tesla’s Design Studio and SpaceX, Unplugged Performance has become a leading provider of premium upgrades for Tesla vehicles, including extensive Cybertruck packages under its UP INVINCIBLE line.

Through its UP.FIT division, the company has also developed purpose-built police and fleet versions of the Cybertruck, including deliveries to agencies such as the Las Vegas Metropolitan Police Department.

In an X post on Tuesday, Unplugged said:

“An open offer to Tesla: We fully support putting Cybercab first, and we’d be glad to take the Cybertruck line off your hands. We’d fund it with a consortium of investors and run it at no cost to Tesla’s floor space, headcount, or focus. All of that goes to Cybercab. Cybercab gets first call on battery cells too. We’ll wait our turn. Tesla gains incremental profit: a license fee, plus FSD and Robotaxi network revenues on every vehicle built. We’d build the Cybertruck, a three-row CyberSUV, and an unmanned CyberCargo hauler. More autonomous miles, across every surface of this planet and beyond. Worth a conversation?”

The arrangement would free Tesla resources and manufacturing capacity for Cybercab while allowing continued production of the stainless-steel pickup and expanded variants. Unplugged Performance indicated it would wait for battery cells after Cybercab needs are met and would generate ongoing revenue for Tesla through licensing and software/network services on the vehicles it produces.

Following strong initial interest, Unplugged Performance posted a follow-up inviting potential investors and strategic partners to email cyber@unpluggedperformance.com. The company clarified that the outreach is solely to gauge interest and does not constitute an offer to sell securities or acceptance of funds at this stage.

The proposal arrives shortly after Elon Musk indicated that Cybertruck production in Texas would be phased out by roughly the middle of 2027 to expand Cybercab output.

Whether Tesla engages with the offer remains to be seen, but the public overture highlights both the aftermarket specialist’s deep experience with the Cybertruck platform and the growing focus on autonomy within Tesla’s manufacturing plans.

Continue Reading

Elon Musk

Elon Musk says Tesla Cybercab future is ‘obvious to anyone with eyes and a brain’

Published

on

Elon Musk said the Tesla Cybercab will perform “a majority of all passenger miles” where it is allowed to operate and that point is “obvious to anyone with eyes and a brain.”

Musk used the point to double down on the company’s decision to ax the cult-favorite Cybertruck, as its production space will be removed and transitioned into additional Cybercab lines. The move has catalyzed a polarizing conversation on whether its right or wrong.

Whatever side you are on — it’s happening.

Regardless, Musk seems to be getting to the point that he is done talking about the choice. At some point, you have to think that this was truly a difficult decision for him and the company as well, and this is not something he took lightly. In fact, he’s probably a little bit disappointed with it, too.

But the point remains that the Cybertruck is gone. Musk’s focus is purely on developing an autonomous platform that the world will utilize for transportation, and he’s telling you that anyone “with eyes and a brain” can see it:

Tesla is betting that all of its passengers in the future will be okay with not owning their own personal cars and will be fine with ride-hailing for the rest of their lives. Every dinner, every errand, every trip to the airport and transportation thereafter, will all be operated by ride-sharing, and in Tesla’s perfect world, it will happen in a Cybercab.

As of now, Cybercab is only active in Austin, but it has been spotted all over the country with a driver behind the wheel in those prototypes. In Austin, the car has no steering wheel or pedals for people to control the vehicle.

The Cybertruck dilemma is one that has truly come across the entire Tesla community and while it seems to be a great idea to keep it because people love it, the business side of things is steering Musk and Tesla in another direction.

Continue Reading