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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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Tesla hosts Rome Mayor for first Italian FSD Supervised road demo

The event marked the first time an Italian mayor tested the advanced driver-assistance system in person in Rome’s urban streets.

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Credit: @andst7/X

Tesla definitely seems to be actively engaging European officials on FSD’s capabilities, with the company hosting Rome Mayor Roberto Gualtieri and Mobility Assessor Eugenio Patanè for a hands-on road demonstration. 

The event marked the first time an Italian mayor tested the advanced driver-assistance system in person in Rome’s urban streets. This comes amid Tesla’s push for FSD’s EU regulatory approvals in the coming year.

Rome officials experience FSD Supervised

Tesla conducted the demo using a Model 3 equipped with Full Self-Driving (Supervised), tackling typical Roman traffic including complex intersections, roundabouts, pedestrian crossings and mixed users like cars, bikes and scooters.

The system showcased AI-based assisted driving, prioritizing safety while maintaining flow. FSD also handled overtakes and lane decisions, though with constant driver supervision.

Investor Andrea Stroppa detailed the event on X, noting the system’s potential to reduce severe collision risks by up to seven times compared to traditional driving, based on Tesla’s data from billions of global fleet miles. The session highlighted FSD’s role as an assistance tool in its Supervised form, not a replacement, with the driver fully responsible at all times.

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Path to European rollout

Tesla has logged over 1 million kilometers of testing across 17 European countries, including Italy, to refine FSD for local conditions. The fact that Rome officials personally tested FSD Supervised bodes well for the program’s approval, as it suggests that key individuals are closely watching Tesla’s efforts and innovations.

Assessor Patanè also highlighted the administration’s interest in technologies that boost road safety and urban travel quality, viewing them as aids for both private and public transport while respecting rules.

Replies on X urged involving Italy’s Transport Ministry to speed approvals, with one user noting, “Great idea to involve the mayor! It would be necessary to involve components of the Ministry of Transport and the government as soon as possible: it’s they who can accelerate the approval of FSD in Italy.”

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Tesla FSD (Supervised) blows away French journalist after test ride

Cadot described FSD as “mind-blowing,” both for the safety of the vehicle’s driving and the “humanity” of its driving behaviors.

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Credit: Grok Imagine

Tesla’s Full Self-Driving (Supervised) seems to be making waves in Europe, with French tech journalist Julien Cadot recently sharing a positive first-hand experience from a supervised test drive in France. 

Cadot, who tested the system for Numerama after eight years of anticipation since early Autopilot trials, described FSD as “mind-blowing,” both for the safety of the vehicle’s driving and the “humanity” of its driving behaviors.

 

Julien Cadot’s FSD test in France

Cadot announced his upcoming test on X, writing in French: “I’m going to test Tesla’s FSD for Numerama in France. 8 years I’ve been waiting to relive the sensations of our very first contact with the unbridled Autopilot of the 2016s.” He followed up shortly after with an initial reaction, writing: “I don’t want to spoil too much because as media we were allowed to film everything and I have a huge video coming… But: it’s mind-blowing! Both for safety and for the ‘humanity’ of the choices.”

His later posts detailed FSD’s specific maneuvers that he found particularly compelling. These include the vehicle safely overtaking a delivery truck by inches, something Cadot said he personally would avoid to protect his rims, but FSD handled flawlessly. He also praised FSD’s cyclist overtakes, as the system always maintained the required 1.5-meter distance by encroaching on the opposite lane when clear. Ultimately, Cadot noted FSD’s decision-making prioritized safety and advancement, which is pretty remarkable.

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FSD’s ‘human’ edge over Autopilot

When asked if FSD felt light-years ahead of standard Autopilot, Cadot replied: “It’s incomparable, it’s not the same language.” He elaborated on scenarios like bypassing a parked delivery truck across a solid white line, where FSD assessed safety and proceeded just as a human driver might, rather than halting indefinitely. This “humanity” impressed Cadot the most, as it allowed FSD to fluidly navigate real-world chaos like urban Paris traffic. 

Tesla is currently hard at work pushing for the rollout of FSD to several European countries. Recent reports have revealed that Tesla has received approval to operate 19 FSD test vehicles on Spain’s roads, though this number could increase as the program develops. As per the Dirección General de Tráfico (DGT), Tesla would be able to operate its FSD fleet on any national route across Spain. Recent job openings also hint at Tesla starting FSD tests in Austria. Apart from this, the company is also holding FSD demonstrations in Germany, France, and Italy.

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Tesla Optimus shows off its newest capability as progress accelerates

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Credit: Tesla

Tesla Optimus showed off its newest capability as progress on the project continues to accelerate toward an ultimate goal of mass production in the coming years.

Tesla is still developing Optimus and preparing for the first stages of mass production, where units would be sold and shipped to customers. CEO Elon Musk has always marketed the humanoid robot as the biggest product in history, even outside of Tesla, but of all time.

He believes it will eliminate the need to manually perform monotonous tasks, like cleaning, mowing the lawn, and folding laundry.

However, lately, Musk has revealed even bigger plans for Optimus, including the ability to relieve humans of work entirely within the next 20 years.

Development at Tesla’s Artificial Intelligence and Robotics teams has progressed, and a new video was shown of the robot taking a light jog with what appeared to be some pretty natural form:

Optimus has also made several public appearances lately, including one at the Neural Information Processing Systems, or NeurIPS Conference. Some spectators shared videos of Optimus’s charging rig, as well as its movements and capabilities, most interestingly, the hand:

The hand, forearm, and fingers have been one of the most evident challenges for Tesla in recent times, especially as it continues to work on its 3rd Generation iteration of Optimus.

Musk said during the Q3 Earnings Call:

“I don’t want to downplay the difficulty, but it’s an incredibly difficult thing, especially to create a hand that is as dexterous and capable as the human hand, which is incredible. The human hand is an incredible thing. The more you study the human hand, the more incredible you realize it is, and why you need four fingers and a thumb, why the fingers have certain degrees of freedom, why the various muscles are of different strengths, and fingers are of different lengths. It turns out that those are all there for a reason.”

The interesting part of the Optimus program so far is the fact that Tesla has made a lot of progress with other portions of the project, like movement, for example, which appears to have come a long way.

However, without a functional hand and fingers, Optimus could be rendered relatively useless, so it is evident that it has to figure this crucial part out first.

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