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Tesla Motors 2015 Strategy to Fight Dealer Laws, Stay Aggressive

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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.”

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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.

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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

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"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

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Investor's Corner

Lucid denies rumors of bankruptcy after over 40% stock drop

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Credit: Lucid

Electric vehicle maker Lucid Group has denied rumors of an imminent bankruptcy after a report from this morning sent the stock on a dramatic drop on Wall Street, seeing losses of more than 40 percent during trading hours.

Lucid’s Director of Communications, Nick Twork, responded to the report from Eletric-Vehicles.com, which stated the company’s restructuring advisor, AlixPartners, was asked to review two decisions: taking Lucid shares private or filing for Chapter 11 bankruptcy protection.

The report also claims AlixPartners told the Lucid board to “concentrate on Gravity production while improving its quality, and to temporarily hold back the Lucid Air, the sedan that has defined the company since its launch.”

Twork said:

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Shares rebounded after the response to the report, halving its losses as the trading day neared 3 p.m. Eastern.

Lucid has struggled to get its sales off the ground and into more respectable numbers, but the company is in its early years, when things are hard to begin with. It is also backed by several notable investors, including the Saudi Public Investment Fund (PIF), which has nearly limitless money and likely would not ditch an investment of this size so soon.

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Lucid shares were down just 14 percent at the time of publication, a far cry from the 55 percent its losses topped out at during the day.

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Tesla owner attempts resale of Model S Signature Edition for over $260k

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Credit: Tesla

A Tesla owner who purchased a Model S Signature Edition, one of the final 250 units of the all-electric flagship vehicle that the company discontinued earlier this year, is attempting to sell the car despite a no-resale clause that prohibits reselling for the first year.

The car is being sold by J&S Autohaus in Ewing, New Jersey, and is priced at $260,490, well above the $159,420 that Tesla sold it for earlier this year.

To those who do not know, the Model S Signature was a highly exclusive, limited-run farewell variant of the Model S Plaid that was produced this year to mark the end of production of both the Model S and Model X, Tesla’s two flagship vehicles.

Limited to just 250 units with invite-only sales, it serves as a collector’s item celebrating the legacy of the Model S, which helped pioneer Tesla’s electric vehicle success since its 2012 launch.

It bundles top-tier performance with bespoke cosmetic and luxury upgrades, plus Tesla’s Luxe Package. Here’s what the Model S Signature has over the typical Model S Plaid:

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  • Exclusive Exterior – Unique Garnet Red Paint, matching door handles, gold Tesla “T” badges upfront, gold Plaid and Signature badging at the rear.
  • Premium Interior – White Alcantara upholstery with gold piping/accents, gold Plaid seat badges, Signature-marked door sills, individually numbered dashboard plaque, gold puddle lights, special interior lighting sequence, and a custom Signature key fob.
  • Performance Upgrades – Carbon-ceramic brakes with gold calipers
  • Bundled Luxe Package – Full Self-Driving (Supervised), four years of Premium Connectivity, free lifetime Supercharging
  • Performance Metrics – ~1,020 horsepower, sub-2-second 0-60 MPH, ~390-mile range

Tesla quickly introduced a No Resale Agreement for the Signature Editions of the Model S and Model X, which would penalize the seller for “the amount of $50,000 or the value received as consideration for the sale or transfer, whichever is greater.”

The company continues:

“If you sell or otherwise transfer the ownership of your Model S or Model X, the remainder of the Recommended Maintenance, Wheel and Tire Protection Plan, and Windshield Protection Plan will transfer automatically to the buyer. The Full Self-Driving (Supervised), Free Supercharging and Premium Connectivity will not transfer with the vehicle and will terminate once the ownership of the Model S or Model X is transferred.”

Tesla will likely come after the seller, especially as it has been about two months since Tesla launched deliveries.

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Tesla Full Self-Driving v14.3.5 Early Impressions: new features and early performance

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Credit: TESLARATI

Tesla rolled out Full Self-Driving (Supervised) v14.3.5 yesterday, and about fifty miles of driving on the new version has given me enough time to highlight what seems to be strong about the release and what is not.

Additionally, Tesla has added a few new features with this specific update, which we’ll highlight as well.

Tesla Full Self-Driving v14.3.5 Performance

The new update is business as usual. Things seem to be running completely normal and necessary, but there are a few things that we’ve seemed to pick up on based on our own experience with v14.3.5, as well as what other users are seeing.

Initially, it seems to be more aware of its surroundings, making moves that are incredibly courteous to other drives and operating just a tad more reserved than what the suite might have done previously.

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We had two instances where it showed this, the first being FSD needing to pass a Flagger Force vehicle that was placing down signage for the day. Their work truck was right at the front corner of a right-hand turn; typically where most cars travel when they take that turn.

FSD v14.3.5 recognized this, slowed down, and took the turn wide with no issues:

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Additionally, v14.3.5 backed up for a semi truck that was making a wide turn onto a road my car was on. This is not new, but it seemed to be backing up for courtesy; it didn’t seem completely necessary, but it might have put some peace of mind in the truck driver’s head:

X user Mike P, also a Pennsylvania native like myself, shared three clips of his Tesla running v14.3.5 performing similar maneuvers. He said:

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“FSD turns right into a small alley that only fits one car at a time, sees oncoming car, reverses out of alley to make space, realizes oncoming car is actually parking, re-enters alley.”

Check it out here:

It seems like Speed Profiles are still in need of some tweaking; I am adjusting what Speed Profile I’m in frequently, constantly changing it to get it to travel at the correct speed. This was an issue for me on v14.3.4. It seems like they’re just a little inconsistent.

Terrible Parking

Parking attempts on v14.3.5 were not good. There are quite a few people who have said this:

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David Moss, the Tesla owner who has taken multiple coast-to-coast drives without any interventions, also has had some issues with parking early on with v14.3.5:

New Features

Tesla has added the ability to open Camera Preview at any time. Previously, it was only available in Park. Here’s what that feature looks like in action:

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Check back later this week for a longer review of what we’ve noticed on Full Self-Driving v14.3.5.

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