News
CT Dealership said “direct sales EVs like Tesla are a very small percentage of the vehicles sold”
A Connecticut dealership employee said at a planning and zoning meeting that “direct sales EVs like Tesla are expensive luxury vehicles and they are a very small percentage of the vehicles sold.” The dealership employee who made that claim works for Hoffman Auto Group.
This is a follow-up to our earlier report that Tesla cut ties with South Windsor after siding with the local dealerships.
Tesla was looking to purchase a new location for a new service center and gallery. In this area, Tesla would complement stores such as Apple. All Tesla would need the town to do is adjust the zoning laws to allow car sales and service.
The South Windsor, CT Facebook page shared a live stream of the meeting and you can watch the replay here.
Dealership sales rep: “Direct sales EVs Tesla are a very small percentage of the vehicles sold”
Tyrrell Dabrowski, sales director at Hoffman Auto Group could be seen laughing at around 1:30:10 which is when the statement about Hoffman suing towns was read aloud.
He also spoke beginning at 1:58 into the meeting. In his speech, he claimed that Tesla owners can’t get good service. I’m not sure if he was boasting or actually taking himself seriously about this since Hoffman Auto Group is blocking Tesla from serving its customers.
“The Hoffman Auto Group, you know, we’re committed to defending the dealer franchise system because it provides the consumers with benefits and protections.”
Dabrowski added that the dealer franchise system “keeps prices low by fostering fair and healthy competition on a level playing field. Direct sales by manufacturers is not necessary for the rapid introduction of EVs in the State of Connecticut. Direct sales EVs like Tesla are expensive luxury vehicles and they are a very small percentage of the vehicles sold.”
Other Dealership Testimonies
Mitchell Sealing Ford testified that Tesla is terrible and illegal. And the Connecticut Automotive Retailers Association claimed that Tesla is trying to sell vehicles in South Windsor which is illegal.
Unfortunately for Tesla, the change was voted down and the location is dead. It’s another win for dealerships–especially those who are spreading misinformation.
Hoffman Auto Group’s Claim Debunked
The claim that direct sales EVs like Tesla are only luxury cars and make up a small percentage of sales is highly misleading.
Tesla is not only the global EV leader, but during the first half of 2022 alone, Tesla delivered 564,000 vehicles which represented a growth increase of 27% year-over-year.
During Tesla’s Q2 2022 earnings call, Elon Musk said that he is confident that Tesla would be able to get to 5,000 cars a week in Austin and Berlin by the end of this year.
“There’s always a lot of uncertainty like the production looks like S-curve, and that intermediate part of S-curve the difficult to bridge that with high certainty. But the end part of the S-curve, you can say, I think you can have a lot more certainty.”
“And so that’s why I’m confident we’ll get to 5,000 cars a week at — in Austin and Berlin by the end of this year or early next year and probably but not certainly, 10,000 cars a week at both locations by the end of next year.”
Statement from Tesla Owners of Connecticut
The Tesla Owners Club of Connecticut shared the following statement with me in an email:
“Unfortunately, once again Tesla was kicked to the curb. Legacy dealerships have an awful reputation. South Windsor didn’t want to open up pandora’s box to any dealership coming into this beautiful part of their town. “
“It was painful to listen to the dealer’s disparaging testimony. Their backward thinking and anti-competitive remarks will lead them to bankruptcy eventually. “
My Previous coverage of Hoffman Auto Group & Tesla
When I wrote for CleanTechnica, I extensively covered the ongoing drama that Hoffman Auto Group caused.
- In June 2021, Hoffman Auto Group sued Tesla and the Town of East Hartford because they didn’t want Tesla to sell to customers.
- In June 2021, Hoffman’s Bradley Hoffman told Senator Haskell, that dealers have spent millions on charging stations and solar panels. I replied to him on Twitter asking him to share where he got that information from. He never replied.
- In August 2021, East Hartford approved the Tesla Service Center—but that didn’t last for long.
- Once the Tesla service center was approved, Hoffman sued Tesla.
- In September 2021, I wrote about why dealerships don’t want to compete with Tesla.
- And in March 2022, I reported on East Hartford ruling in favor of Hoffman and other dealerships regarding Tesla and its new service center.
- My interview with Senator Will Haskell
Elon Musk
Elon Musk strikes down reports on SpaceX IPO rumors
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Elon Musk
Tesla’s Robotaxi dreams just took a massive step toward reality
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.