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Tesla blocked (again) in Connecticut after judge rules in-state activities illegal
Connecticut state court judge Joseph M. Shortall disagreed with Tesla’s “educational venue” defense of a vehicle display gallery in Greenwich, concluding in a December 6, 2018 ruling that its business activities are illegal under state law. The gallery, opened in October 2016, was ordered in May 2017 to “cease all functions” by Connecticut’s Department of Motor Vehicles (DMV), claiming it was operating its 340 Greenwich Ave. location like a dealership, an activity requiring a license for which Tesla is not eligible. Tesla subsequently filed a lawsuit primarily arguing the definition of sales-oriented terms; however, the Superior Court of the New Britain Judicial District affirmed the DMV’s ruling, beginning a period wherein Tesla may file an appeal.
Connecticut state law forbids direct vehicle sales by vehicle manufacturers in favor of a “franchise system”, a set of laws meant to protect independent car dealerships from predatory practices of larger car manufacturing companies. Elon Musk, Tesla’s CEO, has made it a company policy not to sell their electric vehicles to independent dealerships primarily because he believes franchises face a “fundamental conflict of interest” when selling both gas and electric vehicles. Also, Tesla would miss an important opportunity to educate potential buyers about its products in a traditional dealership setting.
“Existing franchise dealers have a fundamental conflict of interest between selling gasoline cars, which constitute the vast majority of their business, and selling the new technology of electric cars. It is impossible for them to explain the advantages of going electric without simultaneously undermining their traditional business. This would leave the electric car without a fair opportunity to make its case to an unfamiliar public.” – Elon Musk, October 22, 2012
It was the “educational” angle that the company took while operating their Greenwich location, claiming that prospective buyers were merely being given information about their unique technology along with a test drive opportunity. Any sales which followed were conducted online and delivery was out-of-state. The DMV, and later the Superior Court judge, disagreed, citing related activities conducted by the Greenwich team that were more sales-specific, such as commissions and bonuses tied to sales resulting from discussions at the gallery and the ability of Tesla to reclaim vehicles if they weren’t picked up by the customer within one week of delivery.
In the Superior Court’s ruling, decided by Judge Trial Referee Joseph M. Shortall, the term “selling” was also agreed to be all-inclusive of advertising and merchandising activities, a definition promoted by the Connecticut Automotive Retailers Trade Association (CARA). The association has been on the front-line of debates involving franchise systems, arguing that they ensure fair competition while demanding that Tesla comply with existing laws and license to independent dealerships as has been the tradition for decades. CARA was the party responsible for initiating the complaint about Tesla’s activities in the state, prompting the DMV’s investigation and order.
With regard to the recent ruling, a Tesla spokesperson tells Teslarati, “Tesla disagrees with the judge’s decision, and we stand by our mission to educate the public and raise awareness about the benefits of EVs because getting more EVs on the road is the right thing to do for the environment and for the battle against climate change.” Although the issue driving CARA’s objection surrounds the issue of “sales”, Tesla does not sell any vehicles at their Greenwich location.
Since Tesla does not license their vehicle sales to independent dealers, the company position is that its business should not be subject to the same laws as manufacturers with licensed franchises. As seen by this latest court ruling, Tesla’s position isn’t exactly a shared one. To date, the company has not been successful in convincing Connecticut’s legislature to revise the direct-sales laws and with organizations like CARA lobbying against such changes, the battle certainly seems uphill.
Connecticut state legislation to amend the direct-sales ban has been proposed twice before, both times stalling from lack of votes. Despite the potential for increased sales tax revenue and jobs from a distribution facility that would come from a Tesla presence in the state, CARA and the state legislators that are friendly to its positions are on the winning side of the matter, even if its tactics to paint a negative picture of the company are questionable. According to Tesla’s former vice president of business development, Diarmuid O’Connell, in a letter to state legislators, CARA previously sent secret shoppers into the Greenwich gallery to sway Tesla employees into illegally selling a vehicle from the storefront. The attempt, of course, failed.
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’
