Tesla’s unique business model allows them to sell vehicles directly to consumers through both retail locations and Tesla’s online design studio. Direct-to-consumer sales of its vehicles have led to some turbulence with existing car dealerships in many states, including Utah, Louisiana, Connecticut, Texas and Michigan. New Jersey allowed Tesla to open direct sales in the state in 2015, but with conditions. New Jersey’s legislation limited the number of direct-to-consumer dealerships per manufacturer to four stores and required at least one service center in the state. Tesla CEO Elon Musk once compared local car dealers to a mafia protection racket, stating in a Tesla blog post, “The rationale given for the regulation change that requires auto companies to sell through dealers is that it ensures ‘consumer protection’…Unless they are referring to the mafia version of ‘protection’, this is obviously untrue.”
Tesla recently launched a lawsuit to overturn a sales ban put into effect in Michigan in 2014 that prevents the Elon Musk-led electric carmaker from selling directly to consumers within the state. The greatest opposition against Tesla’s plea for direct sales in Michigan comes from both auto dealers and manufacturers, who argue that Tesla disrupts the traditional franchise dealership model.
Courtesy of Teslanomics.co
Ironically, Michigan and Texas which bans Tesla’s direct sales model have public pensions that are significant investors in the Silicon Valley company. However, that isn’t the only financial interest states have in Tesla. All states in the US rely heavily on sales tax to generate revenue. States without stores are forcing owners to purchase and service their vehicles out-of-state, missing out on sales tax in the process, a major revenue loss.
Source: Bloomberg, September 2016
Bill Wolters, of the Texas Automobile Dealers Association, is claiming that the introduction of Tesla into the Texas car market would “reduce competition”, and will incur costs for Texas. However, this argument assumes that dealers are creating added value for their consumers, and if that argument holds, then dealers should be able to keep customers in the market after Tesla enters. Additionally, Tesla is competing against other manufacturers and not franchises.
Racecar driver and environmental activist Leilani Munter protest’s North Carolina’s ban on Tesla’s direct sales model (Photo: Medium/Leilani Munter)
Out of a presumed 400,000 reservations for the Tesla Model 3, it is estimated that roughly half originate from the United States, according to the distribution of early Model 3 reservation data from Model3Tracker.info. Using a loosely estimated assumption of Tesla Model 3 reservations originating from banned states via Model3.ocasual.com, we get the following numbers: 1,250 in Louisiana, 2,980 in Connecticut, 3,076 in Utah, 15,670 in Texas, and 4,230 in Michigan.
The sales tax for Michigan is 6%, Louisiana is 9%, Connecticut is 6.35%, Utah is 4.7%, and Texas is 6.25%
This equates to a loss of $8,883,000 for Michigan, $3,937,500 for Louisiana, $34,278,125 for Texas, $6,623,050 for Connecticut, and $5,060,020 for Utah. That’s a total of $59,791,695 in loss revenue, which does not factor in current sales of Model S and Model X.
| States with Tesla Ban | Sales Tax | Estimated Tesla Model 3 Reservations | Projected state revenue loss (in dollars) |
| Louisiana | 9% | 1250 | $3,937,500 |
| Texas | 6.25% | 15670 | $34,278,125 |
| Michigan | 6% | 4230 | $8,883,000 |
| Connecticut | 6.35% | 2980 | $6,623,050 |
| Utah | 4.70% | 3076 | $5,060,020 |
Navigant Research believes that sales electric vehicles, including hybrid/plug-in hybrid, are set to comprise 9 percent of total vehicle sale by 2025. Currently, EVs make up 3% of total vehicle sales, but the number in 2016 saw a 36 percent increase in sales in the US alone. In 2016, 4,500 EVs were sold in Texas, 2,470 in Michigan, 270 in Louisiana, 1,452 in Connecticut, 1,132 in Utah, and 70 in West Virginia. Texas, Connecticut, and Michigan ranked among states with some of the highest EV sales. Of electric vehicles sold total in 2016, the Tesla Model S was the leading electric vehicle with ringing in at 29,156 vehicles. The Tesla Model S also outsold its entire class of vehicles, combined. Tesla is expecting high demand for Model 3, which will start at roughly half the cost of the Model S.
Source: Topspeed.com
There are currently 223,319 estimated Model 3 reservations in the United States, far greater than the sales of comparable vehicles. The BMW 3 and 4 series which sold around 106,000 vehicles in 2016 and the Mercedes C-Class sold around 77,000 vehicles in 2016. Tesla CEO Elon Musk is expecting to produce 500,000 vehicles in 2018 and tens of thousands this year (Tesla hasn’t released Model 3 production guidance for 2017). Musk’s expectations could make the Model 3 the highest selling vehicle in its class in both 2017 and 2018. The states that ban Tesla dealerships not only miss out on sales tax revenue from Tesla vehicles but in turn create an inconvenience for residents. By instating a direct sales ban on Tesla before the launch of Tesla Model 3, states will not only lose millions of dollars in sales revenue per year but also interfere with and disrupt free market competition and consumer activities.
Feature image courtesy of Delanman via Twitter.
Ferrari’s first electric vehicle, the Luce, is fully sold out for 2027, according to CEO Benedetto Vigna.
Presenting third-quarter results, he stated: “Everything we plan to sell next year is already fully allocated. Client test drives, scheduled for next year, will help further boost demand. We have no critical issues, neither on manufacturing nor on the demand side. Obviously, the car is more complex because it has many new parts and many new technologies.”
First customer deliveries are expected before the end of 2026, with the model already commanding waitlists despite a turbulent debut.
The Luce is a five-seat, four-door liftback saloon—the longest Ferrari ever produced—powered by four electric motors producing approximately 1,035 horsepower.
It features an 800-volt architecture, a 122-kWh battery, a claimed WLTP range of around 329 miles, 0-62 mph acceleration in 2.5 seconds, and a starting price near €550,000 in Europe (roughly $560,800–$615,000 in the U.S. depending on configuration).
Developed in collaboration with Jony Ive and Marc Newson’s LoveFrom studio alongside Ferrari’s own Centro Stile, it represents a deliberate departure from the brand’s traditional mid-engine sports cars toward a more spacious, grand-touring format.
Its exterior has proven deeply polarizing. Unveiled in Rome in May 2026, the design features smooth, sweeping surfaces, a large glass roof, and restrained detailing that critics described as bland, generic, or more reminiscent of an Apple product or mass-market EV than a Ferrari.
Ferrari unveils its Luce EV, and its reception has been a disaster
Online reactions included memes comparing it to a Nissan Leaf or Polestar, while former Ferrari chairman Luca di Montezemolo publicly warned of “the destruction of a myth” and suggested the prancing horse logo be removed. Italian politicians and longtime owners joined the chorus of disappointment, and Ferrari’s shares dropped roughly 8% in a single day, erasing billions in market value.
Design experts noted the absence of the brand’s signature tension, aggression, and emotional drama.
Yet the controversy has not translated into weak demand among the ultra-wealthy clientele who actually buy Ferraris. Production volumes remain tightly limited, as reports suggest fewer than 500 units in the current year and a longer-term pace of roughly 600 annually through 2030, preserving exclusivity.
One early chassis sold for $40 million at auction. Vigna has indicated that seeing the car in person, along with upcoming client test drives, is expected to strengthen rather than weaken interest. Ferrari aims for fully electric models to comprise 20 percent of its lineup by 2030, with a second EV now delayed to 2028.
For a brand defined by scarcity and desirability, the Luce’s sell-out status suggests that among those who can afford it, the polarizing design has not proven to be a commercial liability.
Tesla and SpaceX shares fell on Wednesday after Democrats swept both chambers of Congress. The decline stood out as broader market securities recovered and turned positive, while both of Musk’s publicly traded companies lagged.
CEO Elon Musk already joked about the unsuccessful campaigning for the Republicans, but now the new party will make pretty drastic changes to how it handles Tesla and SpaceX, and those companies will adjust their outlook.
Let’s take a deeper look.
Tesla ($TSLA)
Tesla shares traded lower during the regular session after Democrats secured both the House and Senate. The stock was down 2.32 percent at around 1:45 p.m. on the East Coast, trading at around $389.30.
The pressure is tied to more than the raw scale of Musk’s political spending, estimated at $450–474 million this cycle with roughly $224 million directed at Texas. In that state, Tesla now faces a Democratic governor and a Democratic senator after Gina Hinojosa unseated Greg Abbott and James Talarico defeated Ken Paxton.
The Austin Gigafactory, Robotaxi pilot programs in multiple Texas cities, and any related AI compute expansion sit under a new state executive who campaigned against certain corporate subsidies and floated a moratorium on new data-center construction.
Federally, Democratic control of key committees opens the door to deeper examination of Tesla’s autonomous-driving safety record, federal energy-storage and manufacturing incentives, and the national-security implications of any combination with SpaceX.
Investors are also weighing whether the company’s historically close alignment with the prior Republican leadership will invite slower permitting, additional hearings, or tighter rules on Full Self-Driving deployment.
For Tesla, the political shift adds near-term friction around state permitting and federal regulatory approvals for autonomy and energy storage. A potential merger with SpaceX may face slower review even if it proceeds.
Core growth drivers such as vehicle deliveries, energy deployments, and robotaxi rollout remain intact, yet the stock now carries a higher political-risk premium that could weigh on valuation until the company demonstrates workable relationships with the new Texas leadership and congressional majorities.
SpaceX ($SPCX)
SpaceX shares also declined in live trading on November 4 following the Democratic midterm sweep. The stock traded at $134.97, down 4.49 percent. The drop occurred even as broader indexes stabilized, highlighting a company-specific reaction to the election outcome.
Musk’s large contributions, concentrated in Texas races that both companies lost, place SpaceX’s Starbase launch facility and headquarters under a new Democratic governor.
At the federal level, Democratic control of Congress enables greater scrutiny of NASA, the Department of Defense, and other contracts that support a meaningful share of revenue, along with reviews of Starlink national-security uses and any Tesla merger. Analysts have noted that empowered committees can hold hearings and request documents on these relationships.
For SpaceX, the results raise the risk of delayed contract awards, higher compliance costs, and tighter constraints on AI and satellite infrastructure expansion, particularly in Texas where a data-center moratorium has been discussed.
A merger with Tesla could encounter political friction that slows integration of launch, connectivity, and autonomy capabilities.
While Starlink growth and launch cadence continue as primary drivers, the company faces a more contested path for federal funding and state-level operations, requiring management to rebuild ties with the new congressional majorities and Texas leadership to limit the overhang.
Tesla’s new vehicle registrations in Germany rose sharply in October, nearly quadrupling from the same month a year earlier. That’s according to data from the KBA, Germany’s federal motor transport authority.
The KBA reported 2,932 Tesla vehicles registered in October, a 290.9 percent year-over-year- increase. For the first ten months of the year, Tesla’s cumulative registrations reached 47,742 units. This number is up 206.1 percent compared with the January-October period of 2025. These gains occurred against a backdrop of strong overall growth in the BEV sector as a whole.
Germany registered 94,086 new BEVs in October, a 79.5 percent rise that brought the BEV share of the passenger car market to 37 percent of the 254,492 total cars registered that month.
🇩🇪 Tesla’s new registrations in Germany nearly quadrupled in October, according to KBA data.
October: 2,932 units, +290.9% YoY Jan–Oct: 47,742 units, +206.1%
Germany’s overall BEV market grew 79.5% to 94,086 units last month. https://t.co/GMwNqsFAOC
— TESLARATI (@Teslarati) November 4, 2026
Despite the percentage surge, Tesla’s absolute numbers left it with a 1.2 percent share of all new car registrations for October. Chinese competitors did record higher volumes, as BYD registered 5,173 vehicles, a 2 percent share, Leapmotor with 3,661 cars, which equates to 1.4 percent, and Xpeng had a 0.5 percent share.
Year-to-date through October, BYD edged ahead of Tesla with 47,961 registrations versus Tesla’s 47,742.
The October results follow a notably strong September for Tesla in Germany, when it registered 12,552 vehicles, an increase of roughly 269 percent year-over-year and one of its strongest monthly totals on record in the country. That month, the Model Y led all EVs and ranked among the top-selling vehicles of any powertrain.
The figures form part of a broader recovery in Tesla’s European registrations after an extended period of softer demand. While monthly volumes remain subject to typical quarter-end patterns and competitive pressure from both established European brands and rapidly expanding Chinese manufacturers, the year-to-date growth indicates improved traction in Europe’s largest car market.
Tesla’s Gigafactory Berlin-Brandenburg continues to supply the region, positioning the company to capture a share of the expanding German BEV market as overall EV adoptions looks to be accelerating.
Ferrari Luce sold out for 2027 after design controversy
Musk’s Tesla and SpaceX decline after Democratic Midterm sweep
