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Tesla coming to the Heartland will be the inflection point big auto needs

(Credit: Tesla)

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From Fremont, California to Shanghai, China, Tesla is establishing a production chain that is poised to grow together with the electric vehicle movement. But with CEO Elon Musk’s announcement that Tesla was scoping out locations for a new Cybertruck Gigafactory central United States, Tesla is now seemingly getting ready to enter the Heartland of the country. That’s a place where the internal combustion engine still reigns supreme, and where Teslas are still stereotyped as vehicles that are not for the mainstream.

A Gigafactory in the center of the United States serves several purposes. Logistically, an electric vehicle facility in the area would cut down on vehicle delivery times, especially for the East Coast. It would also allow for a complete focus on the Cybertruck until Model Y production also begins at the plant. But apart from these efficiencies, Tesla’s upcoming facility also has the potential to break the final stereotypes around Tesla’s vehicles once and for all.

In a way, Tesla’s presence in the middle of America establishes the company’s footing in a section of the country that has been an evident battleground for the electric carmaker. Central United States is widely perceived as an area where Silicon Valley-style solutions such as Teslas are not effective, as places where farming, agriculture, and other hard-nosed industries do not seem compatible with the sleek, streamlined electric vehicles from the company. A big part of this is the impression that Tesla’s vehicles are only for those with money, and not for the working man.

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Interestingly enough, the same people who would benefit the most from a vehicle like the Cybertruck are also stereotyped as a demographic that is far from being able to “afford a Tesla.” While Tesla prices have dropped over the past few years thanks to increased battery production and manufacturing efficiencies, there is still a pervading idea that the company’s electric cars are still out of reach for most car buyers. This is, of course, untrue, with the Model 3, Model Y, and Cybertruck priced aggressively.

It has been speculated that Tesla’s new Cybertruck will need a separate production facility to keep up with demand for the vehicle. The polarizing design of the all-electric pickup with its unmistakeable stainless steel exoskeleton has already amassed an unconfirmed half-a-million reservations. Elon Musk has mentioned in the Q4 2019 earnings call that the Cybertruck is seeing a lot of demand as well.

With Tesla producing the Cybertruck in the heart of the United States, legacy automakers may find themselves surprised once more that a disruptive company has taken hold of their longtime demographic. It could, for one, end up accelerating the efforts of legacy automakers such as Ford and GM with regards to their respective electric vehicle programs. Ford will likely not give up its most loyal customers freely to the Cybertruck, after all, and the best way the veteran carmaker could rival Tesla’s pickup would be to release the Ford F-150 Electric.

There are relatively no tell-tale signs of where the Cyber Gigafactory will be built, though rumors of Nashville being a potential site are abounding. Still, one thing remains certain: the impact of a Tesla production plant in the heart of America would break through the long-lived stereotypes that innovation is confined only in places like California. It would prove that with vehicles like the Cybertruck, the electric transition is reaching all corners of the country.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla dispels reports of ‘sales suspension’ in California

“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.

Sales in California will continue uninterrupted.”

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Credit: Tesla

Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”

On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”

Tesla enters interesting situation with Full Self-Driving in California

Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”

The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.

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However, Tesla said that its sales operations in California “will continue uninterrupted.”

It confirmed this in an X post on Tuesday night:

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The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.

One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.

Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.

This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”

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New EV tax credit rule could impact many EV buyers

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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tesla showroom
Credit: Tesla

Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.

After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.

However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.

Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.

However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.

This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.

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Elon Musk takes latest barb at Bill Gates over Tesla short position

Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now

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Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.

Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.

Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’

Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.

The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.

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Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:

Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.

“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.

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Tesla CEO Elon Musk sends final warning to Bill Gates over short position

Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”

“Gates is a huge liar,” Musk responded.

It is not known whether Gates still holds his Tesla short position.

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