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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 Full Self-Driving (Supervised) showed a record attach rate at delivery for new vehicles in the third quarter of 2026.
75 percent of new vehicle deliveries in North America included a subscription to FSD software, up from 55 percent in the prior quarter, a 20-percentage-point sequential gain in the company’s most mature market.
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
Tesla shed light on the Q3 Shareholder Deck that 75 percent of new deliveries came with an FSD subscription:
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets. “
The higher attach rate accompanied strong growth in the overall FSD consumer base, as active subscriptions rose to 1.75 million, a 67 percent year-over-year increase. For the first time, more than half of paid customers are on the monthly subscription, which is priced at $99 per month in the U.S.
People are buying FSD with a car attached, not the other way around
— Elon Musk (@elonmusk) October 21, 2026
The transition to subscriptions has accelerated since Tesla discontinued the one-time purchase option in most markets earlier this year. The recurring model improves revenue visibility and margins compared with large upfront payments. With three-quarters of North American deliveries now including FSD, the software is now an evidently large contributor to Tesla’s economics and ancillary revenue.
Geographic expansion remains important for further gains. FSD is now available in nine countries in the EU, and more than 100,000 customers have driven over 160 million kilometers. Tesla is pursuing broader EU-wide approval, with a related vote expected in December. Similar progress in additional markets could support higher attach rates beyond North America.
These results came as Tesla had a strong quarterly delivery performance of 486,532 vehicles in the quarter, which came with its largest passenger-vehicle backlog in four years. Battery supply continued to limit volume, but the company has pointed to FSD as a clear difference-maker that is helping sustain demand. As supervised capabilities improve, the attach rate will likely continue to improve.
At face value, it is a key measure of how Tesla is converting sales into autonomy progress.
Update: 10/22 10:51a – Para 1 consumers changed to “customers” for accuracy.
Tesla Cybercab units finally got a definitive date for when they will be able to be purchased by customers, ending speculation regarding whether the fully autonomous vehicle would be available in the near term.
During Tesla’s third-quarter 2026 earnings call on October 21, Vice President of Engineering Lars Moravy said the company is aiming to begin delivering its purpose-built Cybercab robotaxi to customers before year-end.
🚨 In short, Cybercabs are slated to go to customers by end of the year. All units are going into Robotaxi fleet currently, per @larsmoravy
Cybercab will be “transport-as-a-service,” but vast majority of Cybercab will be “Tesla-owned,” @elonmusk says https://t.co/R8Qu8QWdmp
— TESLARATI (@Teslarati) October 21, 2026
“We’re trying to get Cybercabs to customers by the end of this year, 2026,” Moravy said. He added that production is underway on the line at Gigafactory Texas, but “all of those are currently going to our own internal Robotaxi fleet.”
Moravy explained that as operations scale, Tesla will “mainly deliver fully designed autonomous vehicles to our customers,” with the Cybercab as the first such vehicle. Initial customer deliveries will start small while the company gains experience with delivery logistics, ownership models, fleet management, and operating autonomous vehicles outside its direct control.
CEO Elon Musk reinforced the limited nature of private sales, describing the Cybercab primarily as a “transport-as-a-service” offering rather than a personal ownership vehicle like the Model 3, Model Y, or upcoming Roadster. “The vast majority of the Cybercab stuff will be Tesla-owned and transport-as-a-service,” Musk said.
The Cybercab is a two-seater vehicle developed by Tesla without a steering wheel or pedals. It relies completely on Tesla’s Full Self-Driving suite and has been in production since February. Early units have been put in Tesla’s Robotaxi service as of early September, when the company launched rides to the public. Tesla previously indicated it would aim to sell Cybercabs for about $30,000.
Unsupervised Full Self-Driving is expected to ship to consumer cars during Q2 2027, Ashok Elluswamy, Tesla’s Head of AI, indicated during the call. Early buyers or fleet operators may receive vehicles whose autonomous operation remains geographically restricted due to lagging regulatory agencies. There are some hurdles that remain ahead of Cybercab deliveries.
Tesla (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla buyers are buying for Full Self-Driving and not for the car, data shows
Tesla Cybercab gets a for sale date at last
