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Dealer franchise CEO says Tesla could be a ‘great Ponzi scheme’ and GM is ‘undervalued’
Mike Jackson, CEO of the largest auto dealership franchise AutoNation, commented about Tesla on Tuesday ahead of the upcoming New York Auto Show, calling the Silicon Valley darling a ‘great Ponzi scheme’. The often outspoken CEO shared his thoughts about Tesla’s recent meteoric rise in market value, which surpassed General Motors to become the most valuable U.S. automaker.
“Clearly General Motors is undervalued and Tesla is overvalued,” said Jackson from the J.D. Power Automotive Forum in New York City. “Anybody can see that.” The AutoNation CEO also took a swipe at Tesla’s financial position, saying that selling cars at a loss is “not very exciting”, but appreciates Tesla CEO Elon Musk’s ability to create a brand that has generated an unprecedented cult-like following.
“You have to tip your hat that he’s created a brand that has a strong cult-like following.” said Jackson. Adding, “[Tesla] has a lot of competition coming. Giving away vehicles at below what it cost you to make them is not very exciting.” However, “Selling vehicles at a profit would be very impressive,” said Jackson as reported by USA Today.
Despite Tesla being largely unprofitable, as the company burns through billions of dollars in order to execute on its vision of the future, the electric automaker and energy company is starting to win over Wall Street because of its long term positive outlook. Shares of Tesla soared to new highs yesterday when leading research firm Piper Jaffray raised its price target on Tesla by 65% to $368. Analyst Alexander Potter noted in his report that Tesla burns through cash at rate that “better-established companies would likely be crucified for”. However, the firm also makes it clear that investors are investing into something that simply can’t be replicated by competitors.
“More so than any stock we’ve covered, Tesla engenders optimism, freedom, defiance, and a host of other emotions that, in our view, other companies cannot replicate,” Potter said in his report. “As they scramble to catch up, we think Tesla’s competitors only make themselves appear more desperate.”
Amid ongoing rivalries between dealer franchises and Tesla which sells its vehicles directly to consumers, it doesn’t come as a surprise that the CEO of one of the nation’s largest auto retailers would question Tesla’s rising success. Tesla is “either one of the great Ponzi schemes of all time or it’s gonna work out,” says Jackson.
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Tesla lands approval for Robotaxi operation in third U.S. state
On Tuesday, Tesla officially received regulatory approval from the State of Arizona, making it the third state for the company to receive approval in.
Tesla has officially landed approval to operate its Robotaxi ride-hailing service in its third U.S. state, as it has landed a regulatory green light from the State of Arizona’s Department of Transportation.
Tesla has been working to expand to new U.S. states after launching in Texas and California earlier this year. Recently, it said it was hoping to land in Nevada, Arizona, and Florida, expanding to five new cities in those three states.
On Tuesday, Tesla officially received regulatory approval from the State of Arizona, making it the third state for the company to receive approval in:
BREAKING: Tesla has officially received approval from the Arizona Department of Transportation to launch its Robotaxi service on public roads in the state!
I just confirmed directly with the Arizona DOT that @Tesla applied for a Transportation Network Company permit on Nov 13th.… pic.twitter.com/iKbwfGfiju
— Sawyer Merritt (@SawyerMerritt) November 18, 2025
Tesla has also been working on approvals in Nevada and Florida, and it has also had Robotaxi test mules spotted in Pennsylvania.
The interesting thing about the Arizona approval is the fact that Tesla has not received an approval for any specific city; it appears that it can operate statewide. However, early on, Tesla will likely confine its operation to just one or two cities to keep things safe and controlled.
Over the past few months, Robotaxi mules have been spotted in portions of Phoenix and surrounding cities, such as Scottsdale, as the company has been attempting to cross off all the regulatory Ts that it is confronted with as it attempts to expand the ride-hailing service.
It appears the company will be operating it similarly to how it does in Texas, which differs from its California program. In Austin, there is no Safety Monitor in the driver’s seat, unless the route requires freeway travel. In California, there is always a Safety Monitor in the driver’s seat. However, this is unconfirmed.
Earlier today, Tesla enabled its Robotaxi app to be utilized for ride-hailing for anyone using the iOS platform.
News
Tesla ride-hailing Safety Monitor dozes off during Bay Area ride
We won’t try to blame the camera person for the incident, because it clearly is not their fault. But it seems somewhat interesting that they did not try to wake the driver up and potentially contact Tesla immediately to alert them of the situation.
A Tesla Robotaxi Safety Monitor appeared to doze off during a ride in the California Bay Area, almost ironically proving the need for autonomous vehicles.
The instance was captured on camera and posted to Reddit in the r/sanfrancisco subreddit by u/ohmichael. They wrote that they have used Tesla’s ride-hailing service in the Bay Area in the past and had pleasant experiences.
However, this one was slightly different. They wrote:
“I took a Tesla Robotaxi in SF just over a week ago. I have used the service a few times before and it has always been great. I actually felt safer than in a regular rideshare.
This time was different. The safety driver literally fell asleep at least three times during the ride. Each time the car’s pay attention safety alert went off and the beeping is what woke him back up.
I reported it through the app to the Robotaxi support team and told them I had videos, but I never got a response.
I held off on posting anything because I wanted to give Tesla a chance to respond privately. It has been more than a week now and this feels like a serious issue for other riders too.
Has anyone else seen this happen?”
My Tesla Robotaxi “safety” driver fell asleep
byu/ohmichael insanfrancisco
The driver eventually woke up after prompts from the vehicle, but it is pretty alarming to see someone like this while they’re ultimately responsible for what happens with the ride.
We won’t try to blame the camera person for the incident, because it clearly is not their fault. But it seems somewhat interesting that they did not try to wake the driver up and potentially contact Tesla immediately to alert them of the situation.
They should have probably left the vehicle immediately.
Tesla’s ride-hailing service in the Bay Area differs from the one that is currently active in Austin, Texas, due to local regulations. In Austin, there is no Safety Monitor in the driver’s seat unless the route requires the highway.
Tesla plans to remove the Safety Monitors in Austin by the end of the year.
Tesla has officially opened Robotaxi access to everyone and everyone, but there is one catch: you have to have an iPhone.
Tesla’s Robotaxi service in Austin and its ride-hailing service in the Bay Area were both officially launched to the public today, giving anyone using the iOS platform the ability to simply download the app and utilize it for a ride in either of those locations.
It has been in operation for several months: it launched in Austin in late June and in the Bay Area about a month later. In Austin, there is nobody in the driver’s seat unless the route takes you on the freeway.
In the Bay Area, there is someone in the driver’s seat at all times.
The platform was initially launched to those who were specifically invited to Austin to try it out.
Tesla confirms Robotaxi is heading to five new cities in the U.S.
Slowly, Tesla launched the platform to more people, hoping to expand the number of rides and get more valuable data on its performance in both regions to help local regulatory agencies relax some of the constraints that were placed on it.
Additionally, Tesla had its own in-house restrictions, like the presence of Safety Monitors in the vehicles. However, CEO Elon Musk has maintained that these monitors were present for safety reasons specifically, but revealed the plan was to remove them by the end of the year.
Now, Tesla is opening up Robotaxi to anyone who wants to try it, as many people reported today that they were able to access the app and immediately fetch a ride if they were in the area.
We also confirmed it ourselves, as it was shown that we could grab a ride in the Bay Area if we wanted to:
🚨 Tesla Robotaxi ride-hailing Service in Austin and the Bay Area has opened up for anyone on iOS
Go download the app and, if you’re in the area, hail a ride from Robotaxi pic.twitter.com/1CgzG0xk1J
— TESLARATI (@Teslarati) November 18, 2025
The launch of a more public Robotaxi network that allows anyone to access it seems to be a serious move of confidence by Tesla, as it is no longer confining the service to influencers who are handpicked by the company.
In the coming weeks, we expect Tesla to then rid these vehicles of the Safety Monitors as Musk predicted. If it can come through on that by the end of the year, the six-month period where Tesla went from launching Robotaxi to enabling driverless rides is incredibly impressive.
Tesla lands approval for Robotaxi operation in third U.S. state
Tesla ride-hailing Safety Monitor dozes off during Bay Area ride
