Electric vehicle company Lucid Group Inc. is fighting back against the Lone Star State’s rules on auto dealerships. The state’s car dealership regulations, according to a federal complaint filed by the EV maker, are akin to “economic protectionism,” which makes it difficult for newcomers to market and sell vehicles in Texas.
In a lawsuit filed in Austin, the luxury electric vehicle maker claimed that by requiring businesses to sell their goods through established dealerships, Texas is engaging in anti-competitive behavior. Lucid also argued that because of the close relationship between its direct sales and in-house after-sales service, the utilization of independent franchised dealers would be detrimental to its business.
“That tight and fast feedback loop, and the benefits it brings to Lucid’s customers, would be impossible with third-party dealers interposed between Lucid and consumers,” Lucid wrote.
Lucid, for its part, has not issued a comment about the matter as of writing.
The company’s lawsuit against Texas’ dealership rules comes amid Lucid’s struggles to expand its business, according to a Bloomberg News report. The company currently only offers one vehicle, the Lucid Air luxury sedan, which costs more than $100,000 for now. Despite the company claiming over 37,000 reservations for the vehicle in Q2, however, Lucid was only able to deliver 1,398 Air sedans in the third quarter. It should also be noted that Lucid has already adjusted its production goals twice this year so far.
While a battle against dealership rules in Texas may seem futile, Lucid is following a playbook that has been used successfully by other electric vehicle makers in the past. Tesla, for example, was able to find success in Michigan after more than three years of litigation. Thanks to the EV maker’s efforts, Tesla owners in Michigan are now able to purchase vehicles and have them serviced in the state. Texas is a completely different animal, though, as even Tesla, which has its headquarters in Austin, is still not able to sell its vehicles directly to customers in the state.
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News
Tesla Robotaxi test units spotted in new region ahead of launch
These validation units are used to gain additional data for Tesla’s internal use, or even potentially for regulatory purposes that the company can share with agencies that will eventually grant a license to operate Robotaxi in the state.
 
														Tesla Robotaxi test units are being spotted in various new regions ahead of their launch in new states. Tesla is aiming to launch in at least a few new states in the coming months as it is ramping up hiring for the Robotaxi program and aiming to expand its ride-hailing service.
Already active in Austin, Texas, and the California Bay Area, Tesla is looking to expand its Robotaxi operations to new states. It’s had its eyes set on Nevada, Florida, and Arizona, which have seemed to have the most movement of the three prospects over the past month or so.
That trend is continuing.
Earlier this month, we reported on two Robotaxi units spotted testing with LiDAR rigs for ground truth validation in Gilbert, Arizona. Noted Cybertruck owner and enthusiast Greggertruck spotted the two units traveling on a highway.
Now, those same two units, or at least they appear to be, were spotted in Scottsdale, which is also a suburb of Phoenix, like Gilbert is, with the same LiDAR rigs:
Real world AI coming to Scottdale! Tesla robotaxi spotted beginning testing! @SawyerMerritt @elonmusk @CuriousPejjy pic.twitter.com/D2eUmQsiao
— MpWraps (@MWraps30584) October 29, 2025
These validation units are used to gain additional data for Tesla’s internal use, or even potentially for regulatory purposes that the company can share with agencies that will eventually grant a license to operate Robotaxi in the state.
Tesla is not a company that utilizes LiDAR for its everyday self-driving efforts, as it has utilized only cameras for the past several years.
Tesla Vision, as the company calls it, is what CEO Elon Musk feels is needed to achieve a fully autonomous network of vehicles, which will eventually need zero supervision for passenger transportation.
LiDAR is utilized by other companies, like Waymo, but Tesla has maintained that it is not necessary for several years. Musk has called it a “crutch” for achieving the proper self-driving tech, and the company only uses it for an additional bit of data.
Tesla has been operating its Robotaxi service in Austin since late June, and it has expanded its service area in the city to nearly 300 square miles, with its most recent expansion occurring earlier this week.
Elon Musk
Tesla’s popular side business is going to get bigger, Elon Musk says
It took several years to get the Diner developed, built, and opened. On July 21, Tesla launched the Diner to the public at 4:20 p.m. local time (of course), after years of development. Musk first offered the idea of a drive-in Supercharger Diner back in December 2018.
 
														Tesla will open two new Diner locations in the United States after its first location in Los Angeles has been a raging success, as it is constantly packed and serving food for 24 hours a day, every day.
Tesla CEO Elon Musk said that the initial Diner location on Santa Monica Boulevard is “going well,” and based on reviews and its constant out-the-door lines, it is safe to say it has been a major outlet of interest for people in the area.
It features two massive movie screens, a menu that is locally sourced and has been created by a world-class chef, and Supercharging for EVs. It truly is the perfect stop for those who are hungry, need entertainment, or need a quick charge.

Credit: Tesla
So far, Tesla has not released too many details on the success of the restaurant, but it did state in a graphic for its Q3 Supercharging stats that it sold roughly 50,000 burgers at the Diner in Q3, roughly 715 each day. Burgers are not the only thing on the menu, either.
With how well it has gone, Musk is now considering the possibility of new locations that are notable to Tesla, including Austin and Palo Alto.
On Friday, Musk revealed he believes it “probably makes sense to open one” near Gigafactory Texas and Engineering HQ in Palo Alto:”
The futuristic Tesla Diner is going well. Probably makes sense to open one near our Giga Texas HQ in Austin and engineering HQ in Palo Alto. 😋 https://t.co/l0DUtR8CFg
— Elon Musk (@elonmusk) October 31, 2025
It took several years to get the Diner developed, built, and opened. On July 21, Tesla launched the Diner to the public at 4:20 p.m. local time (of course), after years of development. Musk first offered the idea of a drive-in Supercharger Diner back in December 2018.
By 2023, Tesla had secured building permits and broken ground on the site in September of that year.
Since its launch, it has been a popular hotspot for Tesla fans and others to visit, although it has attracted unwanted attention from protestors as well.
Cringey protestors are outside the Tesla Diner in Los Angeles singing “Elon Musk has got to go”
These people are absolutely nuts pic.twitter.com/LZ0U6rpMIn
— TESLARATI (@Teslarati) October 27, 2025
They look hungry. If they walked inside and ordered some food, maybe they’d stop yelling into microphones and threatening Musk.
Elon Musk
Elon Musk’s AI empire grows as xAI leases Palo Alto space near Tesla
The expanding footprint of Elon Musk’s companies in Palo Alto bodes well for the CEO’s plans in the area.
 
														Elon Musk’s artificial intelligence startup, xAI, is expanding its Silicon Valley footprint, leasing roughly 105,000 square feet of office space at Palo Alto’s Page Mill Center, just blocks away from Tesla’s engineering complex.
Musk’s deepening Silicon Valley footprint
People familiar with the matter have informed the San Francisco Business Times that xAI’s lease at Page Mill Center may already have been finalized, adding to the company’s existing headquarters at 1450 Page Mill Road. The two offices share a parking lot, reflecting Musk’s strategy of consolidating his ventures. Tesla’s engineering hub is also just a few blocks away.
The new offices form a growing cluster of Musk-led companies in the heart of the Valley and come as xAI has listed over 250 job openings. These include listings for engineers, designers, and technical staff, among others.
xAI’s aggressive hiring push hints at rapid scaling, which makes quite a lot of sense considering the company’s ambitious projects. xAI oversees the large language model Grok and other AI initiatives such as the newly launched Grokipedia, and the startup has also acquired the social media platform X. Real estate owner Hudson Pacific Properties, the owners of Page Mill Center, have so far declined to comment.
AI demand and Silicon Valley’s office rebound
Silicon Valley’s office market, long subdued by remote work trends, is seeing renewed activity from AI firms. Hudson Pacific told investors this summer that tenant demand has reached a three-year high, with over half of new leases driven by artificial intelligence companies. Vacancy rates have now fallen for four straight quarters to 16.6% as well, CBRE reported.
The expanding footprint of Elon Musk’s companies in Palo Alto bodes well for the CEO’s plans in the area. Musk, after all, has previously butted heads with officials, resulting in his two biggest ventures, electric vehicle maker Tesla and private space company SpaceX, officially relocating their headquarters to Texas.
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