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Tesla fends off new attack that will hurt consumers more than anyone else

Consumers stand to be hurt the most by a new bill that aims to take away Tesla’s Direct-to-Consumer licensing

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Credit: Tesla

Tesla is likely going to be forced to fend off a new attack that is much different than the petty vandalism, arson, and domestic terrorism it has faced from those who oppose the company and its CEO Elon Musk. It would hurt consumers more than anyone else.

Over the past several months, we have reported numerous instances of vandalism against Tesla. No victim is too big or too small to be a potential target, as everything from keying vehicles to having Molotov cocktails thrown at showrooms is sufficient in the eyes of perpetrators.

However, the latest attack appears to be politically motivated and could hurt Tesla, its consumers, and even other automakers, and it seems to be some form of retaliation against Musk due to his affiliation with President Trump.

The White House, Public domain, via Wikimedia Commons

President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)

Lawmakers in New York state are now attempting to shut down Tesla showrooms in a move that would force the company to sell through dealer franchises, complicating the sales process and making the direct-to-consumer platform the company has used for years obsolete.

The New York Times reported that New York State Sen. Patricia Fahy is one of several lawmakers that is looking to hit Tesla where it hurts the most: its accessible and stress-free showrooms.

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The problem is that this will hurt consumers more than Tesla.

Sen. Fahy said in March that the ease-of-sales platform Tesla uses has to be taken “from Elon Musk,” because “he’s part of an effort to go backwards.”

The licenses Tesla uses in the state allow it to sell cars directly to consumers instead of going through the traditional dealership model. These licenses, in Sen. Fahy’s perfect world, would be revoked from Tesla and given to other EV manufacturers. At one time, she was a proponent of Tesla and supported the company operating its D2C sales, stating it would cut emissions.

Now, Sen. Fahy believes Musk’s association with the Trump Administration is counterintuitive, as she says it is “killing all the grant funding for electric vehicle infrastructure, killing wind energy, killing anything that might address climate change.”

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Tesla could face New York store ban under this legislation

She continued by stating:

“The bottom line is, Tesla has lost their right to promote these when they’re part of an administration that wants to go backwards. Elon Musk was handed a privilege here.”

The bill is with the Senate and Assembly Finance committees.

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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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Elon Musk’s xAI celebrates nearly 3,000 headcount at Memphis site

The update came in a post from the xAI Memphis account on social media platform X.

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Credit: xAI Memphis

xAI has announced that it now employs nearly 3,000 people in Memphis, marking more than two years of local presence in the city amid the company’s supercomputing efforts. 

The update came in a post from the xAI Memphis account on social media platform X.

In a post on X, xAI’s Memphis branch stated it has been part of the community for over two years and now employs “almost 3,000 locally to help power Grok.” The post was accompanied by a photo of the xAI Memphis team posing for a rather fun selfie. 

“xAI is proud to be a member of the Memphis community for over two years. We now employ almost 3,000 locally to help power @Grok. From electricians to engineers, cooks to construction — we’re grateful for everyone on our team!” the xAI Memphis’ official X account wrote. 

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xAI’s Memphis facilities are home to Grok’s foundational supercomputing infrastructure, including Colossus, a large-scale AI training cluster designed to support the company’s advanced models. The site, located in South Memphis, was announced in 2024 as the home of one of the world’s largest AI compute facilities.

The first phase of Colossus was built out in record time, reaching its initial 100,000 GPU operational status in just 122 days. Industry experts such as Nvidia CEO Jensen Huang noted that this was significantly faster than the typical 2-to-4-year timeline for similar projects.

xAI chose Memphis for its supercomputing operations because of the city’s central location, skilled workforce, and existing industrial infrastructure, as per the company’s statements about its commitment to the region. The initiative aims to create hundreds of permanent jobs, partner with local businesses, and contribute to economic and educational efforts across the area.

Colossus is intended to support a full training pipeline for Grok and future models, with xAI planning to scale the site to millions of GPUs.

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Elon Musk confirms Tesla Cybercab pricing and consumer release date

Elon Musk has confirmed that Tesla does intend to sell a version of the Cybercab for less than $30,000 by 2027.

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Credit: @AdanGuajardo/X

Elon Musk has confirmed that Tesla does intend to sell a version of the Cybercab for less than $30,000 by 2027. He shared the update in a post on social media platform X. 

Amidst Tesla’s announcement that the first Cybercab has been produced at Giga Texas’ production line, some members of the Tesla community immediately started joking about how the milestone will affect a wager shared by popular YouTube tech reviewer Marques Brownlee (MKBHD.) 

Following Tesla’s We, Robot event in October 2024, MKBHD noted that while the Cybercab was impressive in a lot of ways, he is very skeptical about Elon Musk’s estimate that the autonomous two-seater could be sold to consumers for below $30,000 around 2027. 

“I think the obvious red flag, the biggest red flag to me is the timeline stuff. This is notorious Elon stuff. He gets on stage, he says we’re going to have this vehicle out for $30,000 before 2027,”  he said, adding “No, they’re not. There’s just no way that they’re actually going to be able to do that. I mean, if they do, let’s say they do, I will shave my head on camera because I’m that confident.”

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It was then no surprise that meme images of MKBHD with his head shaved immediately spread on X following Tesla’s announcement that the first Cybercab has been built at Giga Texas. One of these, which was posted by longtime FSD tester Whole Mars Catalog, received a response from Elon Musk. The CEO responded with the words “Gonna happen,” together with a laughing emoji. 

Apart from riding jokes about MKBHD’s wager, Musk also confirmed that Tesla will be selling a Cybercab to regular consumers before 2027, and the vehicle will be priced for $30,000 or less. In response to an X user who asked if the exact scenario will be happening, Musk responded with a simple “Yes.” 

While the first Cybercab has been produced at Giga Texas, it would not be surprising if the following months will only see low volumes of the autonomous two seater being produced. As per Elon Musk in previous comments, the Cybercab’s early production will likely be slow, but it will eventually be extremely fast. “For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” he said. 

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First Tesla Cybercab rolls off Giga Texas production line

Tesla’s official account on X shared an image showing employees gathered around the first Cybercab built at Gigafactory Texas.

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Credit: Tesla/X

Tesla has produced the first Tesla Cybercab at Texas Gigafactory, marking a key milestone ahead of the planned autonomous two-seater’s production in April. The two-seat Robotaxi, which was unveiled in 2024, is designed without pedals or a steering wheel and represents Tesla’s most aggressive step yet toward fully autonomous mobility.

Tesla’s official account on X shared an image showing employees gathered around the first Cybercab built at Gigafactory Texas. Elon Musk echoed the milestone, writing, “Congratulations to the Tesla team on making the first production Cybercab!”

Previous comments from Musk on X reiterated the idea that production of the Cybercab “starts in April.” The vehicle will launch without traditional driver controls, and it will rely entirely on Tesla’s vision-based Full Self-Driving (FSD) system.

The Cybercab is positioned to compete with autonomous services such as Waymo. While Tesla has deployed Model Y vehicles in limited Robotaxi operations in Austin and the Bay Area, a serious ramp of the service to other cities across the United States is yet to be implemented. The production of the Cybercab could then be seen as a push towards the company’s autonomy plans.

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Musk has linked the Cybercab to Tesla’s proposed “Unboxed” manufacturing process, which would assemble large vehicle modules separately before integrating them, rather than following a traditional production line. The approach is intended to cut costs, reduce factory footprint, and speed up output.

That being said, Elon Musk has set expectations for the Cybercab’s production ramp. As per Musk, it would likely take some time before meaningful volumes of the Cybercab are produced because it is such a new and different vehicle. But when the vehicle hits its pace, volumes will be notable. 

“Initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” Musk noted.

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