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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 has scaled back driver monitoring to be less naggy with the latest version of the Full Self-Driving (Supervised) suite, which is version 14.3.3.
The latest version is already earning praise from owners, who are reporting that the suite is far less invasive when it comes to keeping drivers from taking their eyes off the road. The first to mention it was notable Tesla community member on X known as Zack, or BLKMDL3.
14.3.3 nags less too https://t.co/IuiWzuYO6O
— Elon Musk (@elonmusk) May 18, 2026
Musk confirmed that v14.3.3 was made to nag drivers significantly less, something that Tesla has worked toward in the past and has said with previous versions that it is less likely to push drivers to look ahead, at least after looking away for a few seconds.
This refinement aligns with Tesla’s ongoing push toward unsupervised FSD. The update also brings faster Actual Smart Summon (now up to 8 mph), reliable “Hey Grok” voice commands, richer visualizations, smoother Mad Max acceleration, and an intervention streak counter that rewards consistent use. Reviewers describe the drive as more human-like and confident, with fewer twitches or unnecessary maneuvers.
Musk has repeatedly signaled this direction. In late 2025, he stated that FSD would allow phone use “depending on context of surrounding traffic,” noting safety data would justify relaxing rules so drivers could text in low-risk scenarios like stop-and-go traffic.
We tested this, and even still, the cell phone monitoring really seems to be less active in terms of alerting drivers:
Tesla Full Self-Driving v14.2.1 texting and driving: we tested it
Earlier, ahead of v14, Musk promised the system would “nag the driver much less” once safety metrics improved.
In 2023, he confirmed the steering wheel torque nag would be “gradually reduced, proportionate to improved safety,” shifting reliance to the cabin camera. Subsequent updates like v13.2.9 and v12.4 further loosened monitoring, cracking down on workarounds while easing legitimate distractions.
These steps reflect Tesla’s data-driven approach: FSD’s safety record—reportedly averaging millions of miles per crash—now outpaces human drivers in many scenarios, giving the company confidence to dial back interventions. Reduced nags improve usability and trust, encouraging more drivers to rely on the system rather than disengaging out of frustration.
However, there are certainly still some concerns. In many states, it is illegal to handle a cell phone in any way, requiring the use of hands-free devices. In Pennsylvania, it is illegal to use your cell phone at stop lights, which is definitely a step further than using it while the car is actively in motion.
v14.3.3 represents tangible progress. Making FSD less adversarial and more seamless is definitely a step forward, but drivers need to be aware of the dangers of distracted driving. FSD is extremely capable, but it is in no way fully autonomous, nor does its performance warrant owners to take their attention off the road.
Tesla has officially expanded its Full Self-Driving (FSD) suite in Europe once again, as it will now be offered to customer vehicles in Lithuania, marking a significant milestone as the second European Union country to offer the system.
Tesla confirmed FSD’s rollout in Lithuania this morning:
FSD Supervised now rolling out to Teslas in Lithuania 🇱🇹!
Making European roads safer, one by one pic.twitter.com/Uuj0bNG7pP
— Tesla Europe, Middle East & Africa (@teslaeurope) May 20, 2026
Tesla showed several clips of Full Self-Driving navigation in Lithuania to mark the announcement, while Lithuanian Transport Minister Juras Taminskas highlighted the system’s potential to assist with lane-keeping, speed adjustment, and traffic tasks on longer drives, while emphasizing that drivers must stay alert and ready to intervene.
Just a few weeks ago, Tesla officially entered Europe with Full Self-Driving in the Netherlands. The expansion of FSD on the continent is now officially underway.
Full Self-Driving’s European Journey
Europe has long posed one of the toughest regulatory challenges for Tesla’s autonomy ambitions due to stringent safety standards under the United Nations Economic Commission for Europe (UNECE) framework, particularly UN Regulation 171 for Driver Control Assistance Systems.
The Netherlands’ RDW authority granted the pioneering approval after over 18 months of rigorous testing, including 1.6 million kilometers on European roads and extensive data submissions.
This approval enables mutual recognition across the EU, allowing other member states to adopt it nationally without full re-testing. Lithuania quickly leveraged this mechanism, becoming the second adopter. Tesla positions FSD Supervised as a tool to incrementally improve road safety, with the company claiming it reduces incidents when used properly.
Bottlenecks slowing broader European deployment include fragmented national regulations, varying levels of regulatory skepticism, and requirements for robust driver monitoring. Some EU officials have raised concerns about performance in adverse conditions like icy roads or speeding scenarios, alongside frustrations over Tesla’s public advocacy approach.
Additional hurdles involve data privacy, liability frameworks, and the need for EU-wide harmonization. While countries like Belgium appear to be fast-tracking adoption, larger markets such as Germany, France, and Italy are expected to follow in the coming months, with potential EU-wide progress targeted for later in 2026.
Tesla Full Self-Driving Across the World
As of May, Full Self-Driving (Supervised) is available in approximately ten countries.
In North America, it has been live for years in the United States, Canada, Mexico, and Puerto Rico. Asia-Pacific additions include Australia, New Zealand, and South Korea, while China utilizes what Tesla calls “City Autopilot.” In Europe, the Netherlands and now Lithuania join the list, with more countries mulling the possibility of also approving FSD.
Tesla offers FSD via monthly subscriptions (around €99 in Europe) or one-time purchases (with deadlines approaching in many markets), shifting toward recurring revenue models. Today is the final day Europeans will be able to purchase the suite outright.
This expansion underscores Tesla’s push for global autonomy, starting with supervised and building toward greater capabilities. With Lithuania now online, momentum is building across Europe, though regulatory caution will continue shaping the pace. Owners in approved regions report smoother highway and urban driving, but the system remains Level 2, which requires human oversight.
Elon Musk
Tesla ditches India after years of broken promises
Tesla has ditched its plans to build a factory in India after years of failed negotiations.
Tesla’s long-running effort to establish a manufacturing presence in India is officially over. India’s Minister of Heavy Industries H.D. Kumaraswamy confirmed on May 19, 2026 that Tesla has informed authorities it will not proceed with a manufacturing facility in the country.
Tesla first signaled serious interest in India around 2021, when it began hiring local staff and lobbying the Indian government for lower import tariffs. The ask was straightforward: reduce duties enough for Tesla to test the market with imported vehicles before committing capital to a local factory. India’s position was equally firm, with an ask of Tesla to commit to manufacturing first, then receive tariff relief. Neither side moved, and the talks quietly collapsed.
Tesla to open first India experience center in Mumbai on July 15
India had offered a policy that would reduce import duties from 110% down to 15% on EVs priced above $35,000, provided companies committed at least $500 million toward local manufacturing investment within three years. Tesla declined to participate. The tariff standoff was only part of the problem. Analysts pointed to significant gaps in India’s local supply chain, inadequate industrial infrastructure, and a mismatch between Tesla’s premium pricing and the purchasing power of India’s automotive market as additional factors that made the investment difficult to justify.
First signs of an unraveling relationship came in April 2024, when Musk abruptly cancelled a planned trip to India where he was set to meet Prime Minister Modi and announce Tesla’s market entry. By July 2024, Fortune reported that Tesla executives had stopped contacting Indian government officials entirely. The government at that point understood Tesla had capital constraints and no plans to invest.
The more fundamental issue is that Tesla’s existing factories are currently operating at approximately 60% capacity, making a commitment to building new manufacturing capacity in a new market difficult to defend to investors. Tesla will continue selling imported Model Y vehicles through its existing showrooms in Mumbai, Delhi, Gurugram, and Bengaluru, but local production is no longer part of the plan.
Tesla scales back driver monitoring with latest Full Self-Driving release
Tesla Full Self-Driving expands in Europe, entering its second country
