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GM to void warranties of flipped vehicles to combat price gouging

Credit: @Benji_OOS | Hummer EV Page on Facebook

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General Motors has announced that vehicles sold too quickly after their initial sale will have their warranties stripped ahead of multiple hotly anticipated product releases.

According to FOX Business, a letter sent from GM North America President Steve Carlisle to dealers outlines that bumper-to-bumper, powertrain/EV propulsion system, sheet metal, tire, and accessory warranties would be removed from vehicles that are resold too quickly after the initial sale. Only the Hummer EV battery warranty will be allowed to transfer to the new owner after a quick re-sale.

The message from Carlisle states:

“When vehicles are quickly resold, particularly by unauthorized dealers or other resellers that do not adhere to GM’s standards, the customer experience suffers and GM’s brands are damaged.”

The report also stated that dealers who take part in this practice will be restricted from placing orders or reservations on some “high demand” models in the future.

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In the continued battle of many automakers to limit price gouging by dealers and private resellers alike, legacy brands have very few options. Because they cannot control the sale price of vehicles from any of the parties selling their cars, they have found new and creative ways to limit the activity. Ford has stated that it will restrict dealer allocations of new vehicles, particularly their new F-150 Lightning, if they engage in extreme price hikes or fraudulent customer order practices. And now, GM is initiating similarly aggressive measures to limit poor practices.

This announcement comes ahead of many key product launches for multiple GM brands. The Silverado EV will start deliveries next year, the Equinox EV and Blazer EV are not far behind. Even later this year, the new Corvette Z06 will start deliveries, and so will the Cadillac Escalade-V. Due to high demand and supply constraints that have rattled the industry for the past year, each of these vehicles could easily be targeted by dealers and private resellers to make a quick buck.

It is unclear at this time if vehicles that have already been flipped, such as many Hummer EVs, will have their warranties stripped as well or how dealers, re-sellers, and the market generally will respond to the change.

GMC Hummer EV Edition 1 sells for three times its MSRP at Las Vegas auction

This announcement poses a serious question for brands and owners: Do owners of vehicles have the right to sell the vehicle they own whenever they please? Perhaps more importantly, how much does it matter to brands if their vehicles get flipped? Why should they care? According to the Carlisle message, GM believes the practice damages their brands. This may be possible as consumers see vehicles as out of their price range and dealers as untrustworthy when they are presented with these price hikes, preventing valuable sales of GM products.

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Manufacturers will likely face this and many more questions in the coming months as in-demand EVs continue to be flipped and sold for exorbitant amounts.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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SpaceX reaches incredible milestone with Starlink program

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Credit: SpaceX

SpaceX reached an incredible milestone with its Starlink program with a launch last night, as the 3,000th satellite of the year was launched into low Earth orbit.

On Monday, SpaceX also achieved its 32nd flight with a single Falcon 9 rocket from NASA’s Kennedy Space Center.

The mission was Starlink 6-92, and it utilized the Falcon 9 B1067 for the 32nd time this year, the most-used Falcon booster. The flight delivered SpaceX’s 3000th Starlink satellite of the year, a massive achievement.

There were 29 Starlink satellites launched and deployed into LEO during this particular mission:

SpaceX has a current goal of certifying its Falcon boosters for 40 missions apiece, according to Spaceflight Now.

The flight was the 350th orbital launch from the nearby SLC-40, and the 3,000 satellites that have been successfully launched this year continue to contribute to the company’s goal of having 12,000 satellites contributing to global internet coverage.

There are over five million users of Starlink, the latest data shows.

Following the launch and stage separation, the Falcon 9 booster completed its mission with a perfect landing on the ‘Just Read the Instructions’ droneship.

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The mission was the 575th overall Falcon 9 launch, highlighting SpaceX’s operational tempo, which continues to be accelerated. The company averages two missions per week, and underscores CEO Elon Musk’s vision of a multi-planetary future, where reliable connectivity is crucial for remote work, education, and emergency response.

As Starlink expands and works toward that elusive and crucial 12,000 satellite goal, missions like 6-92 pave the way for innovations in telecommunications and enable more internet access to people across the globe.

With regulatory approvals in over 100 countries and millions of current subscribers, SpaceX continues to democratize space, proving that reusability is not just feasible, but it’s also revolutionary.

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Tesla expands new Full Self-Driving program in Europe

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Credit: Tesla Europe & Middle East/X

Tesla expanded its new Full Self-Driving program, which gives people the opportunity to experience the company’s suite, in Europe.

Tesla recently launched an opportunity for Europeans to experience Full Self-Driving, not in their personal vehicles, but through a new ride-along program that initially launched in Italy, France, and Germany back in late November.

People could experience it by booking a reservation with a local Tesla showroom, but timeslots quickly filled up, making it difficult to keep up with demand. Tesla expanded the program and offered some additional times, but it also had its sights set on getting the program out to new markets.

It finally achieved that on December 9, as it launched rides in Denmark and Switzerland, adding the fourth and fifth countries to the program.

Tesla confirmed the arrival of the program to Denmark and Switzerland on X:

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The program, while a major contributor to Tesla’s butts in seats strategy, is truly another way for the company to leverage its fans in an effort to work through the regulatory hurdles it is facing in Europe.

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Tesla has faced significant red tape in the region, and although it has tested the FSD suite and been able to launch this ride-along program, it is still having some tremendous issues convincing regulatory agencies to allow it to give it to customers.

CEO Elon Musk has worked with regulators, but admitted the process has been “insanely painful.”

The most recent development with FSD and its potential use in Europe dealt with the Dutch approval authority, known as the RDW.

Tesla says Europe could finally get FSD in 2026, and Dutch regulator RDW is key

Tesla said it believes some regulations are “outdated and rules-based,” which makes the suite ineligible for use in the European jurisdiction.

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The RDW is working with Tesla to gain approval sometime early next year, but there are no guarantees. However, Tesla’s angle with the ride-along program seems to be that if it can push consumers to experience it and have a positive time, it should be easier for it to gain its footing across Europe with regulatory agencies.

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Tesla ramps hiring for Roadster as latest unveiling approaches

Tesla published three new positions for the Roadster this week, relating to Battery Manufacturing, General Manufacturing, and Vision Engineering.

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Tesla Roadster at Tesla Battery Day 2020 Credit: @BLKMDL3 | Twitter

Tesla is ramping up hiring for positions related to the Roadster program, the company’s ultra-fast supercar that has been teased to potentially hover by CEO Elon Musk.

The company seems to be crossing off its last handful of things before it plans to unveil the vehicle on April Fool’s Day, just about four months away.

Tesla published three new positions for the Roadster this week, relating to Battery Manufacturing, General Manufacturing, and Vision Engineering. All three are located in Northern California, with two being at the Fremont Factory and the other at the company’s Engineering HQ in Palo Alto.

Technical Program Manager, Battery Manufacturing

Located in Fremont, this role specifically caters to the design of the Roadster to factory operations. It appears this role will mostly have to do with developing and engineering the Roadster’s battery pack and establishing the production processes for it:

“You will foster collaboration across design engineering, manufacturing, quality, facilities, and production to align with company priorities. Additionally, you will understand project opportunities, challenges, and dependencies; translate scattered information into concise, complete messages; and communicate them to every team member. As the business process development lead, you will develop, maintain, and implement tools and processes to accelerate battery manufacturing execution, achieve cross-functional alignment, and deliver highly efficient systems.”

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Manufacturing Engineer, Roadster

Also located in Fremont, this role also has to deal with the concept development and launch of battery manufacturing equipment. Tesla says:

“In this role, you will take large-scale manufacturing systems for new battery products and architectures from the early concept development stage through equipment launch, optimization, and handover to local operations teams.”

Manufacturing Vision Engineer, Battery Vision

This position is in Palo Alto at Tesla’s Engineering Headquarters, and requires the design and scale of advanced inspection and control systems to next-generation battery products:

“You’ll work on automation processes that directly improve battery performance, quality, and cost, collaborating with world-class engineers in a fast-paced, hands-on environment.”

Developing and deploying 2D and 3D vision and measurement systems from proof-of-concept to deployment on high-volume battery manufacturing lines is part of the job description.

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Roadster Unveiling

Tesla plans to unveil the Roadster on April 1, and although it was planned for late this year, it is nice to see the company put out a definitive date.

Musk said on the Joe Rogan Experience Podcast in late October:

“Whether it’s good or bad, it will be unforgettable. My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars. I think if Peter wants a flying car, he should be able to buy one…I think it has a shot at being the most memorable product unveil ever.”

Production should begin between 12 to 18 months after unveiling, so we could see it sometime in 2027.

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