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Tesla faces set back in Virginia as judge rules in favor of dealer association appeal

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Tesla has found itself in another round of legal warfare. This time, a judge has ruled that the Virginia Automobile Dealers Association has standing to challenge a Virginia Department of Motor Vehicles decision allowing Tesla to open its planned Richmond dealership, according to The Richmond Times-Dispatch.

After an hourlong hearing Monday, Richmond Circuit Court Judge Gregory Rupe ruled that VADA is an “aggrieved party” that can legally appeal to the circuit court to challenge the DMV’s December decision to grant Tesla’s application for a new dealership.

The ruling does not affect whether the store can open, but it does allow VADA’s challenge to proceed in court.

The dispute is over Tesla’s direct-to-consumer model, which allows the company to bypass traditional dealerships and sell through its showrooms or online design studio. VADA argues that Tesla should be required to sell its cars through independent dealerships, citing a state law that tightly restricts manufacturers owning dealerships.

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DMV’s decision to grant Tesla’s application for the Richmond location went against a hearing officer’s recommendation that the EV giant’s request be denied, saying that it did not meet the requirements to be exempt from the state law that VADA cited in its case.

“The court’s decision today is disappointing, but Tesla remains fully committed to doing business in Virginia and serving the public interest in sustainable energy better than any franchise auto dealer could,” Tesla said in a statement on Monday. “As the lawsuit proceeds, we will continue to vigorously defend the right of consumers in Virginia to purchase directly from Tesla.”

The Richmond dealership would be just the third Tesla showroom in the state, joining the company’s locations in McLean and Vienna, Virginia, both of which are near Washington, D.C.

This is just the latest courtroom showdown for the Silicon Valley-based electric carmaker, which has recently been in a high profile battle with Governor Rick Snyder of Michigan, as well as on the losing end of a bill signed by Louisiana Governor John Bel Edwards banning Tesla’s direct sales in the state. Both of those states, as well as Utah, Connecticut and Texas, ban Tesla sales, while New Jersey has strict constraints on the company’s sales. These states all cite dealership laws similar to the one in the Richmond case.

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Tesla CEO Elon Musk once compared local car dealers to a mafia protection racket, stating in a 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.”

Interim East Coast Editor for Teslarati, contributor for NextMobility. Share tips at mdolzer@teslarati.com

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Elon Musk

Tesla finalizes AI5 chip design, Elon Musk makes bold claim on capability

The Tesla CEO’s words mark a strategic shift. Tesla has long emphasized software-hardware co-design, squeezing maximum performance from every transistor. Musk previously described AI5 as optimized for edge inference in both Robotaxi and Optimus.

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Credit: Elon Musk | X

Tesla has finalized its chip design for AI5, as Elon Musk confirmed today that the new chip has reached the tape-out stage, the final step before mass production.

But in a brief reply on X, Musk clarified Tesla’s AI hardware roadmap, essentially confirming that the new chip will not be utilized for being “enough to achieve much better than human safety for FSD.”

He said that AI4 is enough to do that.

Instead, the AI5 chip will be focused on Tesla’s big-time projects for the future: Optimus and supercomputer clusters.

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Musk thanked TSMC and Samsung for production support, noting that AI5 could become “one of the most produced AI chips ever.” Yet, the key pivot came in his direct answer: vehicles no longer need the bleeding-edge silicon.

Existing AI4 hardware, which is already deployed in hundreds of thousands of HW4-equipped Teslas, delivers safety metrics superior to human drivers for Full Self-Driving. AI5 will instead accelerate Optimus robot development and massive Dojo-style training clusters.

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The Tesla CEO’s words mark a strategic shift. Tesla has long emphasized software-hardware co-design, squeezing maximum performance from every transistor. Musk previously described AI5 as optimized for edge inference in both Robotaxi and Optimus.

Now, with AI4 proving sufficient, the company avoids costly retrofits across its fleet while redirecting next-generation compute toward higher-value applications: dexterous robots and exponential training scale.

But is it reasonable to assume AI4 enables unsupervised self-driving? Yes, but with important caveats.

On the hardware side, the claim is credible. Tesla’s FSD stack runs end-to-end neural networks trained on billions of miles of real-world data. Internal safety data reportedly shows AI4-equipped vehicles already outperforming average human drivers by a significant margin in controlled metrics (collision avoidance, reaction time, edge-case handling).

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Dual-redundant AI4 chips provide ample headroom for the driving task, leaving bandwidth for future model improvements without new silicon. Musk’s assertion aligns with Tesla’s pattern of over-provisioning compute early, then optimizing ruthlessly, exactly as HW3 once sufficed before HW4 scaled further.

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Unsupervised autonomy, meaning Level 4 or higher, is not solely a compute problem. Regulatory approval remains the primary gate.

Even if AI4 achieves “much better than human” safety statistically, agencies like the NHTSA demand exhaustive validation, liability frameworks, and public trust.

Tesla’s supervised FSD has shown rapid gains in recent versions, yet real-world edge cases, like construction zones, emergency vehicles, and adverse weather, still require driver intervention in many jurisdictions. Competitors like Waymo operate limited unsupervised fleets, but only in geofenced areas with extensive mapping. Tesla’s vision-only, fleet-scale approach is more ambitious—and harder to certify globally.

In short, Musk’s post is both pragmatic and bullish. AI4 is likely capable of unsupervised FSD from a technical standpoint. Whether regulators and consumers agree, and how quickly, will determine if Tesla’s bet pays off.

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The company’s capital-efficient path keeps existing cars relevant while pouring future compute into robots. If the safety data holds, unsupervised autonomy could arrive sooner than many expect.

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Elon Musk signals expansion of Tesla’s unique side business

Long envisioning the Tesla Diner as more than a charging stop, Musk has clearly adopted the idea that the Supercharger and Restaurant combo is a good thing for the company to have. It’s a blend of classic American drive-in culture with futuristic Tesla flair, complete with a 1950s-inspired design, movie screens, and on-site dining.

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tesla diner
Credit: Tesla

Elon Musk has signaled an expansion of Tesla’s unique side business, something that really has nothing to do with cars or spaceships, but fans of the company have truly adopted it as just another one of its awesome ventures.

Musk confirmed on Wednesday that Tesla would build a new Diner location in Palo Alto, Northern California. After hinting last October that it “probably makes sense to open one near our Giga Texas HQ in Austin and engineering HQ in Palo Alto,” it seems one of those locations is being set into motion.

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Long envisioning the Tesla Diner as more than a charging stop, Musk has clearly adopted the idea that the Supercharger and Restaurant combo is a good thing for the company to have. It’s a blend of classic American drive-in culture with futuristic Tesla flair, complete with a 1950s-inspired design, movie screens, and on-site dining.

He first floated broader expansion plans shortly after the LA opening in July 2025, noting that if the prototype succeeded, Tesla would roll out similar venues in major cities worldwide and along long-distance Supercharger routes.

Earlier hints included a confirmed second site at Starbase in Texas, tied to SpaceX operations, underscoring the Diner’s role in enhancing Tesla’s ecosystem behind vehicles.

The Los Angeles location on Santa Monica Boulevard in West Hollywood has served as a high-profile test case. Opened in July 2025 at 7001 Santa Monica Blvd., it features the world’s largest urban Supercharging station with 80 V4 stalls open to all NACS-compatible EVs, over 250 dining seats, rooftop views, and 24/7 service.

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The retro-futuristic building replaced a former Shakey’s and quickly became a destination. Tesla reported selling 50,000 burgers in the first 72 days—an average of over 700 daily—drawing crowds with Cybertruck-shaped packaging, breakfast extensions until 2 p.m., and movie screenings.

Palo Alto stands out as a logical next step for several reasons. As Tesla’s longstanding engineering headquarters in the heart of Silicon Valley, the city is home to thousands of Tesla employees, engineers, and executives who could benefit from a convenient, branded gathering spot.

The area boasts high EV adoption rates, dense tech talent, and heavy traffic along key corridors, making a large Supercharger-diner an ideal fit for both daily commuters and long-haul travelers.

Proximity to Stanford University and the innovation ecosystem would amplify its appeal, potentially serving as a showcase for Tesla’s vision of integrated mobility and lifestyle experiences. It could be a great way for Tesla to recruit new talent from one of the country’s best universities.

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If Tesla and Musk decide to move forward with a Palo Alto diner, it would build directly on the LA prototype’s momentum while addressing Musk’s earlier calls for expansion near core Tesla hubs.

Whether it materializes as a full confirmation or evolves from these hints remains to be seen, but the pattern is clear: Tesla is testing ways to make charging stops memorable. For EV drivers and enthusiasts alike, a Silicon Valley outpost could blend cutting-edge tech with nostalgic comfort, further embedding Tesla into everyday culture. As Musk’s comments suggest, the future of the Diner looks promising.

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The Starship V3 static fire everyone was waiting for just happened

SpaceX completed a full duration of Starship V3 today clearing the path for Flight 12.

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SpaceX Starship V3 from Starbase, Texas on April 14, 2026

SpaceX is that much closer to launching their next-gen Starship after completing today’s full duration static fire out of Starbase, Texas. This marks a direct signal that Flight 12, the maiden voyage of Starship V3, is imminent. SpaceX confirmed the test on X, posting that the full duration firing was completed ahead of the vehicle’s next flight test.

The road to today started on March 16, when Booster 19 completed a shorter 10-engine static fire, also at the newly constructed Pad 2. That test ended early due to a ground systems issue but confirmed all installed Raptor 3 engines started cleanly. Booster 19 returned to the Mega Bay, received its remaining 23 engines for a full complement of 33, and rolled back out this week for the complete test campaign. Musk confirmed earlier this month that Flight 12 is now 4 to 6 weeks away.

Countdown: America is going back to the Moon and SpaceX holds the key to what comes after

The numbers behind the world’s most powerful rocket are genuinely hard to put in context. Each Raptor 3 engine produces roughly 280 tons of thrust, and with all 33 firing simultaneously from the super heavy booster, this generates approximately 9,240 tons of combined thrust, more than any rocket in history. For context, that’s enough thrust to lift the entire Empire State Building, and then some. V3 stands 408 feet tall and can carry over 100 tons to low Earth orbit in a fully reusable configuration. The V2 generation topped out at around 35 tons.

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Historically, a successful full-duration static fire is the last major ground milestone before launch. SpaceX has followed this pattern with every Starship iteration since the program began in 2023.  Musk has been direct about the ambition behind all of it. “I am highly confident that the V3 design will achieve full reusability,” he wrote on X earlier this year. Full reusability of both stages is the foundation of SpaceX’s plan to make regular flights to the Moon and Mars economically viable. Today’s test brings that goal one significant step closer.


Starship V3 delivers on two most critical promises of full reusability and in-orbit refueling. The reusability case is straightforward, and one we have seen with Falcon 9 wherein the rocket can fly again within a day rather than building a new one for every mission. It’s the only economic model that makes frequent lunar cargo runs viable. The in-orbit refueling piece is less obvious but equally essential. To reach the Moon with enough payload, Starship requires roughly ten dedicated tanker flights to fuel up a propellant depot in low Earth orbit before it can even begin its journey to the lunar surface. That capability has never been demonstrated at scale, and Flight 12 is the first step toward proving it works. As Teslarati reported, NASA’s Artemis II crew completed a historic lunar flyby earlier this month, the first humans to travel beyond low Earth orbit since 1972, but getting astronauts to actually land and eventually supply a permanent Moon base requires a cargo pipeline that only a fully reusable, refuelable Starship V3 can deliver at the volume and cost NASA’s plans demand.

SpaceX Starship full duration static fire on April 14, 2026 from Starbase, Texas (Credit: SpaceX)

SpaceX Starship full duration static fire on April 14, 2026 from Starbase, Texas (Credit: SpaceX)

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