News
Does the Dealer Association seriously think Tesla is doing a disservice to buyers?
Tesla Motors filed suit in the US district court against Michigan state officials after having been rebuffed in its quest to sell cars directly to customers. The suit asks the court to declare that Michigan’s franchise dealer law violates the due process and equal protection clauses of the Fourteenth Amendment to the U.S. Constitution as well as the Commerce Clause.
At the time the suit was filed, a spokesperson for the company said, “Solving this legislatively always has been and continues to be Tesla’s preferred option. For the last two years, Tesla has pursued legislation in Michigan that is fair to everyone and that would benefit Michigan consumers.”
Now Jeff Carlson, chairman of the National Automobile Dealers Association (NADA) has responded to Tesla’s legal action. Speaking to the Automotive Press Association, Carlson said policymakers should consider what customers want above all else. He is convinced that buyers want lower prices first and foremost.
As quoted in The Detroit News, Carlson said, “They can continue to support the franchised dealers who discount up to $700 … or … they can offer the consumer a vertically integrated model that prices vehicles at retail. The public policymakers are going to go to the consumers and say, ‘Which one do you want, the discounted product or the product at retail?’ I think they’ll make the right decision.”
In support of his position, Carlson cited a 2015 Phoenix Center study that found competition among dealers often results in discounts of hundreds of dollars. He is convinced that, given a choice, car buyers would prefer to do business with a dealer rather than a company that sells direct and does not negotiate prices.
Carlson seems to think that people love to drive from dealer to dealer to haggle over prices like rug merchants in a bazaar. He thinks they enjoy the games, the gimmicks, and the gymnastics buyers have to go through in order to get a dealer’s best price. Endless shuffling back and forth to manager. First pencil, second pencil, the full panoply of tricks and cajolery designed to do one thing and one thing only — avoid discounting the price of the car any more than necessary to make the sale. In the business, it is known as “holding gross” and it is the holy grail of the car business.
Decades worth of data show that people usually buy from a dealer located within 25 miles of home. Nobody wants to drive 100 miles to save a few hundred dollars. They want to buy from a local dealer who will give them good service. Dealers know this and use it parry any suggestion by a customer that they are going to go “shop around.” Some do but most don’t. They do the dance for a little while, then buy the car from the nearest dealer.
The favorite expression in the business is, “It’s not the deal you got; it’s the deal you think you got.” Car dealers negotiate prices every day. Customers negotiate prices once every three to four years. Who do you think is going to win the battle most of the time?
Studies show that most customers hate to haggle. They would rather have a root canal than arm wrestle with a car dealer. Mr. Carlson wants to offer people a choice — negotiate the old fashioned way or pay the price on the sticker. And he thinks the majority of people will choose haggling? What universe are you from, Jeff Carlson?
The arrogance of the franchise dealers is astonishing. They actually believe they are performing a valuable community service and are loved by their customers. In reality, they are an illegal monopoly that is conspiring to keep prices as high as possible.
If dealers only demonstrated a sliver of interest in promoting electric cars, perhaps they would have some credibility. But they don’t. They park their plug-in hybrids and electrics out back. They never charge the batteries and they try every trick they know to switch people away from an EV and toward a conventional car.
Dealers and manufacturers make their living building and selling conventional cars so they have no interest in making less money. They can’t be bothered with plug-ins and electrics. Jeff Carlson is dead wrong when he says customers prefer being raked over the coals by dealers. Ask people what they want and they will tell you they prefer never to have to haggle with a car salesman ever again in their lifetime.
Investor's Corner
SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching
SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger
SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.
The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures
All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.
If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.
News
SpaceX’s Gwynne Shotwell just made a quiet gesture toward Tesla
SpaceX president Gwynne Shotwell quietly followed Tesla on X, and merger watchers noticed right away.
SpaceX President and COO Gwynne Shotwell has started following Tesla’s official account on X, a small change that landed in the middle of a very loud merger conversation. Whole Mars Catalog joked about it on Sunday.
A follow is not an announcement, and neither company has said anything about a deal. What gives the moment weight is the timing. Barclays analyst Dan Levy has told clients that an agreement could come before Tesla’s annual meeting, which must be held by December 6, with SpaceX as the buyer in an all stock deal, as we reported after the Roadster unveiling. Wedbush’s Dan Ives has stuck with a 2027 timeline.
“Shit, I better start following their X account if i’m gonna be helping run the company”
— Whole Mars Catalog (@wholemars) October 18, 2026
Shotwell is the executive most worth watching if the two companies do move closer. When Musk was asked at the All In Summit why Tesla and SpaceX remain separate, Shotwell sat next to him and said SpaceX personnel had already moved into xAI to fill leadership and engineering gaps. The businesses were integrating “faster than I thought,” she said, though “not fully integrated yet.” Her responsibilities have also grown since SpaceX absorbed xAI, and she now oversees operations that include Grok and the company’s AI compute buildout.
The financial links are already there. Tesla’s $2 billion xAI investment turned into a stake of less than one percent in SpaceX, the two share the Terafab chip project in Austin, and Musk exercised his 2018 Tesla options a week after SpaceX began trading, a sequence analysts flagged as giving SpaceX public shares to use in a deal. Musk holds about 20 percent of Tesla and controls 85.1 percent of SpaceX’s voting power, according to our earlier breakdown.
The next test is close at hand. SpaceX reports its second earnings as a public company on Tuesday after the close, and Tesla follows on Wednesday. Musk told analysts in July that “we can’t talk about combining companies and that kind of thing on an earnings call,” so a direct answer is unlikely from either stage. Tesla shareholders can still submit and vote on questions through the Say portal until 4 p.m. EDT on Monday, and the merger is a recurring theme in the queue.
Elon Musk
Tesla Roadster owners to get “Flying Stunt Mode” and looping track access
Musk says Roadster owners can command the unveiling stunts autonomously, with a Texas looping track.
Elon Musk says owners of the new Tesla Roadster will be able to ask the car to perform the stunts Tesla showed at its unveiling, with the car doing the driving itself. Musk made the comment Saturday in a reply on X to tech blogger Robert Scoble, and he added a promise of a looping track at Tesla’s Texas headquarters.
Scoble had argued that the person in the Roadster is not really driving it. In his description, the driver operates a computer that tells another computer what to do, with steering, braking and acceleration all handled by wire. Musk answered, “True. You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient. Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.”
@Scobleizer True.
You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient.
Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.
— Elon Musk (@elonmusk) October 17, 2026
At the October 15 event outside Waco, the car drove up a curved ramp until it was upside down, flew off on cold gas thrusters, flipped and landed. It also hovered over a Cybercab, Cybertruck, Semi, Model Y and Model 3 while moving. As we noted in our breakdown of the three Roadster configurations, Musk said at the event that the car “literally is just going to puff itself up” to perform the maneuvers whenever an owner wants. Saturday’s reply adds that the car would run them on its own.
Tesla has described some of the hardware that would make that possible. The Roadster uses steer by wire with a yoke, and its cold gas thrusters rely on electric actuators for small adjustments in flight. A fan system under the car creates suction, which Tesla says is strong enough to hold it upside down, a setup we covered in our look at the Roadster’s fan system and thrusters.
Musk did not say when an autonomous stunt feature might arrive, how it would work, or what he means by sentient. He also gave no size, location or opening date for the Texas track. Production is planned for Giga Texas in 2027 or 2028, and Tesla says the car is not approved for public road use. The Rocket version, the one built to fly, is invite only.
The comment follows a week of Musk teasing the event, including his claim that the demo would be a banger, which we covered before the stream. Tesla reports third quarter earnings on October 21, and shareholders can submit and vote on questions through the Say portal until 4 p.m. EDT on October 20, according to our earnings Q&A preview. A question about autonomous Roadster stunts and the Texas track would be a quick way to get specifics from management.