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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.”

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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.

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.

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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.

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!

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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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Tesla stuns with another FSD approval in Europe, its second in two days

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Tesla has stunned by gaining yet another approval for its Full Self-Driving suite in Europe, its second in two days and its fifth overall.

Belgium will be the latest country to allow Tesla owners to utilize FSD on public roads in Europe, joining a quickly growing list that started with the Netherlands, Lithuania, and Estonia.

On Tuesday, Denmark announced its approval of the FSD suite, which has now been followed by Belgium just one day later.

The country’s Minister of Mobility, Annick De Ridder, announced the approval on her X account, stating that she had just signed the approval of Tesla FSD. It now goes to the country’s homologation department for the last step of the approval process.

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The Belgian approval is one of mighty importance because it truly shows how quickly countries in Europe could greenlight the FSD suite consecutively. Approvals are already coming in relatively quickly, which is a great sign.

Perhaps the next big development that could come from FSD approvals in Europe is an approval from a country like England, Italy, France, Spain, or Germany. It would be something to see how FSD would perform in a major European metro, such as London, Barcelona, Madrid, Paris, Rome, or Berlin.

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Full Self-Driving does an excellent job of roaming around major U.S. cities like New York and Los Angeles, but other high-profile international cities of significance would truly mark a line in the sand for Tesla, which can simply enable any vehicle in its customer-owned fleet to run FSD with the correct approvals.

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SpaceX’s Elon Musk relieves worries about orbital data centers

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Rendering of Elon Musk overlooking a Starship fleet (Credit: Grok)
Rendering of Elon Musk overlooking a Starship fleet (Credit: Grok)

SpaceX CEO Elon Musk recently confronted worries about orbital data centers and launching satellites in mass quantities in space, as some voiced concerns about crowding.

Musk’s SpaceX plans to combat the issue of needing data centers by launching them into space instead of taking up valuable real estate on Earth. It has been a major point of SpaceX’s future, including its looming IPO, which could be the largest ever.

In a recent interview filmed at SpaceX’s Starlink terminal factory in Bastrop, Texas, Elon Musk directly addressed concerns that deploying large numbers of AI satellites for orbital data centers could crowd Earth’s orbit. His message was straightforward and reassuring: space is vast beyond human intuition.

“Space is really big,” Musk said. “It’s not like space is gonna get crowded. Space is enormous. If you actually look at it relative to the Earth, the satellites are so tiny you can’t even see them.” He emphasized that even zooming in makes a satellite appear large, but from a planetary perspective, they are minuscule specks.

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Musk pointed to SpaceX’s real-world experience operating roughly 10,000 Starlink satellites as evidence that large constellations can be managed safely. “We’ve got a pretty good idea of how to operate just really large constellations and do it safely,” he noted. SpaceX remains the only operator with meaningful experience at this scale, giving the company unique insight into tight orbital packing without compromising safety

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The discussion highlighted SpaceX’s plans for “AI1” satellites—essentially orbiting racks of AI compute powered by massive solar arrays and cooled via radiative panels in space’s vacuum.

These satellites leverage proven Starlink V3 technology, making them simpler to design than communications satellites. A first-generation unit targets around 150 kW peak power, with a 70-meter wingspan for solar panels and radiators. Laser links will connect them to each other and the Starlink network, delivering low-latency access (on the order of a few milliseconds from low-Earth orbit).

FCC accepts SpaceX filing for 1 million orbital data center plan

Musk framed orbital data centers as a practical solution to Earth’s constraints on AI growth. Ground-based facilities face power shortages, water demands for cooling, and grid limitations. In space, constant sunlight (no day-night cycle), vacuum radiative cooling, and abundant solar energy offer clear advantages.

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Production will ramp up at an expanded “Gigasat” factory in Bastrop, with solar manufacturing already underway and full AI satellite output expected at reasonable volume by the end of 2027. Starship’s rapid, high-volume launch capability, aiming for multiple flights per hour, will make massive deployment feasible.

Critics sometimes raise risks like space debris or Kessler syndrome, but Musk’s response underscores scale: even a million satellites would represent an imperceptible fraction of available orbital volume when viewed against Earth’s size. SpaceX’s automated collision avoidance and deorbiting designs for Starlink further mitigate concerns.

This vision ties into broader ambitions. Musk sees orbital AI compute as a step toward harnessing more of the Sun’s energy, advancing humanity on the Kardashev scale from a Type 0 civilization toward Type 1 and eventually Type 2. By moving power-hungry data centers off-planet, SpaceX aims to unlock orders-of-magnitude more compute while preserving Earth’s resources.

Musk’s comments should ease public anxiety. With proven operational expertise, incremental engineering, and the immensity of space itself, orbital data centers represent not overcrowding, but smart expansion into the final frontier.

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Investor's Corner

Tesla Full Self-Driving hits Level 4? One analyst says yes

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Credit: Tesla

Tesla Full Self-Driving (Supervised) is currently listed as a Level 2 suite in terms of its passenger cars. As its Robotaxi platform continues to move quickly, it has been recognized as a Level 4 ride-sharing program by the State of Texas, as Tesla recently self-certified itself.

However, a Wall Street analyst is arguing that Tesla (NASDAQ: TSLA) has effectively achieved Level 4 autonomy in most conditions in all of its vehicles, drawing on personal experience and data released by the company.

Alex Potter of Piper Sandler said in a note to investors on Wednesday that “Tesla has solved the self-driving puzzle,” pointing to decisions to offer insurance discounts for FSD-enabled policies as a signal of confidence, which is backed up by stellar safety records compared to human driving.

Investing.com initially reported on Potter’s new note.

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Additionally, Potter looks at the recent start of Cybercab production at Giga Texas as a potential indication that Tesla is ready to offer some level of unsupervised driving at least in the near future. The Cybercab has no steering wheel or pedals, completely eliminating the ability for human input.

He also sees Tesla’s allocation of “several hundred million USD (if not $1B+)” as confidence internally, seeing as it would be tough to set aside that amount of capital toward a project that the company does not see as relatively near-term.

Forward thinking, especially as Cybercab has no human controls, it would make sense that Tesla is at least close to self-driving. How close is another question.

Tesla has routinely teased that unsupervised FSD is close, but there are still a lot of things it feels as if the company has to roll out some more capability, including unsupervised parking features, known as “Banish,” better operation with regional self-driving performance, and other improvements.

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That is not to say that Tesla FSD is super impressive already. It has already completed coast-to-coast drives across the United States and Canada, it routinely takes the stress out of driving for most people, and it has proven through Tesla Safety Reports that it is safer and involved in accidents less frequently than humans.

Even Potter believes it is capable, as he used it to go from Missoula, Montana, to Minneapolis, Minnesota, back in April.

“There’s no substitute for personal experience,” he wrote.

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