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.
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Tesla FSD (Supervised) fleet passes 8.4 billion cumulative miles
The figure appears on Tesla’s official safety page, which tracks performance data for FSD (Supervised) and other safety technologies.
Tesla’s Full Self-Driving (Supervised) system has now surpassed 8.4 billion cumulative miles.
The figure appears on Tesla’s official safety page, which tracks performance data for FSD (Supervised) and other safety technologies.
Tesla has long emphasized that large-scale real-world data is central to improving its neural network-based approach to autonomy. Each mile driven with FSD (Supervised) engaged contributes additional edge cases and scenario training for the system.
The milestone also brings Tesla closer to a benchmark previously outlined by CEO Elon Musk. Musk has stated that roughly 10 billion miles of training data may be needed to achieve safe unsupervised self-driving at scale, citing the “long tail” of rare but complex driving situations that must be learned through experience.
The growth curve of FSD Supervised’s cumulative miles over the past five years has been notable.
As noted in data shared by Tesla watcher Sawyer Merritt, annual FSD (Supervised) miles have increased from roughly 6 million in 2021 to 80 million in 2022, 670 million in 2023, 2.25 billion in 2024, and 4.25 billion in 2025. In just the first 50 days of 2026, Tesla owners logged another 1 billion miles.
At the current pace, the fleet is trending towards hitting about 10 billion FSD Supervised miles this year. The increase has been driven by Tesla’s growing vehicle fleet, periodic free trials, and expanding Robotaxi operations, among others.
With the fleet now past 8.4 billion cumulative miles, Tesla’s supervised system is approaching that threshold, even as regulatory approval for fully unsupervised deployment remains subject to further validation and oversight.
Elon Musk
Elon Musk fires back after Wikipedia co-founder claims neutrality and dubs Grokipedia “ridiculous”
Musk’s response to Wales’ comments, which were posted on social media platform X, was short and direct: “Famous last words.”
Elon Musk fired back at Wikipedia co-founder Jimmy Wales after the longtime online encyclopedia leader dismissed xAI’s new AI-powered alternative, Grokipedia, as a “ridiculous” idea that is bound to fail.
Musk’s response to Wales’ comments, which were posted on social media platform X, was short and direct: “Famous last words.”
Wales made the comments while answering questions about Wikipedia’s neutrality. According to Wales, Wikipedia prides itself on neutrality.
“One of our core values at Wikipedia is neutrality. A neutral point of view is non-negotiable. It’s in the community, unquestioned… The idea that we’ve become somehow ‘Wokepidea’ is just not true,” Wales said.
When asked about potential competition from Grokipedia, Wales downplayed the situation. “There is no competition. I don’t know if anyone uses Grokipedia. I think it is a ridiculous idea that will never work,” Wales wrote.
After Grokipedia went live, Larry Sanger, also a co-founder of Wikipedia, wrote on X that his initial impression of the AI-powered Wikipedia alternative was “very OK.”
“My initial impression, looking at my own article and poking around here and there, is that Grokipedia is very OK. The jury’s still out as to whether it’s actually better than Wikipedia. But at this point I would have to say ‘maybe!’” Sanger stated.
Musk responded to Sanger’s assessment by saying it was “accurate.” In a separate post, he added that even in its V0.1 form, Grokipedia was already better than Wikipedia.
During a past appearance on the Tucker Carlson Show, Sanger argued that Wikipedia has drifted from its original vision, citing concerns about how its “Reliable sources/Perennial sources” framework categorizes publications by perceived credibility. As per Sanger, Wikipedia’s “Reliable sources/Perennial sources” list leans heavily left, with conservative publications getting effectively blacklisted in favor of their more liberal counterparts.
As of writing, Grokipedia has reportedly surpassed 80% of English Wikipedia’s article count.
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Tesla Sweden appeals after grid company refuses to restore existing Supercharger due to union strike
The charging site was previously functioning before it was temporarily disconnected in April last year for electrical safety reasons.
Tesla Sweden is seeking regulatory intervention after a Swedish power grid company refused to reconnect an already operational Supercharger station in Åre due to ongoing union sympathy actions.
The charging site was previously functioning before it was temporarily disconnected in April last year for electrical safety reasons. A temporary construction power cabinet supplying the station had fallen over, described by Tesla as occurring “under unclear circumstances.” The power was then cut at the request of Tesla’s installation contractor to allow safe repair work.
While the safety issue was resolved, the station has not been brought back online. Stefan Sedin, CEO of Jämtkraft elnät, told Dagens Arbete (DA) that power will not be restored to the existing Supercharger station as long as the electric vehicle maker’s union issues are ongoing.
“One of our installers noticed that the construction power had been backed up and was on the ground. We asked Tesla to fix the system, and their installation company in turn asked us to cut the power so that they could do the work safely.
“When everything was restored, the question arose: ‘Wait a minute, can we reconnect the station to the electricity grid? Or what does the notice actually say?’ We consulted with our employer organization, who were clear that as long as sympathy measures are in place, we cannot reconnect this facility,” Sedin said.
The union’s sympathy actions, which began in March 2024, apply to work involving “planning, preparation, new connections, grid expansion, service, maintenance and repairs” of Tesla’s charging infrastructure in Sweden.
Tesla Sweden has argued that reconnecting an existing facility is not equivalent to establishing a new grid connection. In a filing to the Swedish Energy Market Inspectorate, the company stated that reconnecting the installation “is therefore not covered by the sympathy measures and cannot therefore constitute a reason for not reconnecting the facility to the electricity grid.”
Sedin, for his part, noted that Tesla’s issue with the Supercharger is quite unique. And while Jämtkraft elnät itself has no issue with Tesla, its actions are based on the unions’ sympathy measures against the electric vehicle maker.
“This is absolutely the first time that I have been involved in matters relating to union conflicts or sympathy measures. That is why we have relied entirely on the assessment of our employer organization. This is not something that we have made any decisions about ourselves at all.
“It is not that Jämtkraft elnät has a conflict with Tesla, but our actions are based on these sympathy measures. Should it turn out that we have made an incorrect assessment, we will correct ourselves. It is no more difficult than that for us,” the executive said.
Tesla FSD (Supervised) fleet passes 8.4 billion cumulative miles
Elon Musk fires back after Wikipedia co-founder claims neutrality and dubs Grokipedia “ridiculous”
