News
The NJ mafia puts contract hit on Tesla
Elon Musk is always one step away from pushing the envelope further. Is calling New Jersey the mafia state enough of a wake up call?
Governor Chris Christie exemplifies modern politics clichés by turning around his previous decision legally working with Tesla Motors to follow suit with Texas and Arizona. Is there a pattern? Far from engaging in politics at Teslarati, we can’t help but wonder why those states known for their free markets ideals turned their back on the rhetoric? Where is competition and free market these days?
Does anybody remember freedom of choice?
Elon’s post rightfully reminds us of the disconnect between politicians and their constituents by saying: “the New Jersey Motor Vehicle Commission, composed of political appointees of the Governor, ended your right to purchase vehicles at a manufacturer store within the state” on his post. Governor Christie promised to put a vote to Tesla selling directly, but once the very big, and very powerful auto dealer lobby voiced their concerns, a backroom deal was cut, thus circumventing the legal process. Essentially, the auto dealer association pressures Chris Christie to force anyone buying a new vehicle through middlemen in New Jersey.
Essentially, Elon Musk accuses the Administration and the New Jersey Motor Vehicle Commission of: “going beyond their authority to implement the state’s laws at the behest of a special interest group looking to protect its monopoly at the expense of New Jersey consumers.”
Automotive Dealerships is a humongous lobby.
We’ll let you gauge how powerful the National Automotive Dealership Association is. Last year, there were 17,600 dealers of new cars and trucks in the US, yielding over $676 billion of sales, accounting for about 15 percent of all US retail activities. The automotive dealership is a substantial part of the country’s economy and its $86.8 million of dealership monies continuously spends $57 million funneled on state election across the country since 2003.
A few days back, we wrote about how the inevitable has to happen, bringing back our country to its foundation of freedom of choice. Dealerships don’t have the best reputation, and certainly very few people praise their services. Is it any wonder they push for an old, worn out self-serving business model? Tesla’s model is so modern, answers the needs of our current era and reflects a very real demand for freedom of choice. Simply put, dealerships do not offer the added services they once did, and are not able to change that quickly. Sounds familiar? Carmakers feel the same. Tesla Motors creeps under Detroit’s car manufacturers’ skin. They feel the inevitable, that change is a constant and you cannot turn around a big corporation instantly. Does that mean we don’t need car dealerships? Certainly not.
Tesla Motors is about now.
If we put everything into perspective, we find Tesla Motors answers our urgent need for elegant performance cars that run on an efficient energy means, electricity. Carmakers are left in the less enviable position of making petroleum derivative powered cars that pollute, smell bad and make awful noises. What truly isn’t fair is to expect these big carmaker and their dealerships to turn on a dime and start manufacturing batteries and electric motors. They are not tooled for this, and the investments would be gargantuan.
The Tesla stores frighten auto dealerships.
Why wouldn’t they be frightened by the Tesla stores, conveniently located inside malls, at the mercy of any onlooker? If you are relegated to the outskirts of the city, next to other car dealerships, knowing how people dread going to look for that new car, carefully maneuvering pushy salesmen, deciphering the unintelligible jargon and financing pitfalls, wouldn’t you fear Tesla? What do you do against a Tesla store that has a list of Model S drivers who will let you ride and sometimes drive their personal car? Know anyone who that with the internal combustion engine (ICE) drivers? Neither do we. But, why would you fight this marvelous system?
In the meantime, it’s hard not to feel sorry for politicians seeing constituents losing faith and car dealership lobbies facing better business models. Would you be frightened, or would you take the opportunity to change and adapt, once and for all?
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
Elon Musk says this part of Tesla ‘makes no sense’
