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Tesla faces lawsuit from New Jersey auto dealer association

Original Tesla Roadster on display at Cherry Hill, NJ showroom [Credit: @vivivandeerlin via Twitter]

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Tesla is currently facing a lawsuit from an auto dealer association operating in New Jersey. In a filing submitted on Wednesday to the state’s Superior Court, the New Jersey Coalition of Automotive Retailers (NJ CAR) called for legal action against the electric car maker for what it alleged were violations of multiple laws. 

The dealer association argued in its filing that the New Jersey Motor Vehicle Commission, together with a number of state agencies, have so far failed to enforce consumer protection laws, advertising laws, and franchise and dealer licensing laws regarding the electric car maker. In a statement to Automotive News, Jim Appleton, president of New Jersey’s Coalition of Automotive Retailers, argued that the group does not fear competition from Tesla. Instead, it simply objects to unfair competition. 

“It may appear ironic that the head of a trade association that represents new car dealers is suing the State of New Jersey to urge enforcement of the strict laws that regulate new car dealers. But NJ CAR has spent decades advocating for firm and fair rules that create a level playing field and promote a competitive marketplace that benefits consumers and honest business owners, alike. Neighborhood new car dealers don’t fear competition from Tesla — which accounts for less than 1% of the new car market in New Jersey — they simply object to unfair competition which places consumers at risk and local businesses at a competitive disadvantage,” he said. 

Original Tesla Roadster on display at Cherry Hill, NJ showroom [Credit: @vivivandeerlin via Twitter]

At the center of the dealer association’s lawsuit against Tesla is the electric car maker’s expanding presence in the state. In 2015, New Jersey allowed Tesla to operate four direct sales locations, a rule that the coalition argues was violated when Tesla decided to open a fifth location in the form of a gallery. According to the auto dealers, the fifth location’s distinction as a “gallery” does not mean anything since the electric car maker conducts sales-related actions in the location. Interested customers, for example, could configure their vehicle orders on the gallery. 

“Whether or not any sales are finalized at Tesla’s gallery, the above-mentioned activities that take place at the gallery are designed and intended to lead to a sale and certainly constitute ‘offering vehicles for sale,’” the complaint read. It should be noted that while the dealers’ concerns appear valid, the lawsuit fails to account for the fact that customers do not need to be in a Tesla gallery or store to configure their vehicle order. Due to the company’s simple online configurator, vehicle orders could be completed in any location with mobile internet access

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Apart from its grievances about Tesla’s fifth location, the dealer association also alleged that the state failed to enforce consumer protection laws when the electric car maker pulled a “bait and switch” with the Model 3 by announcing a $35,000 variant of the vehicle and later encouraging its customers to purchase more expensive versions of the electric sedan. This complaint will likely be easily rebutted, considering that the $35,000 Model 3 is available today, albeit as an off-menu item. Business practices that incentivize consumers to purchase higher-end products are pretty common as well, in both the auto and tech sphere. 

Tesla’s volunteer owners help out during the company’s end-of-quarter push in Q3 2018. [Credit: Sean M Mitchell/Twitter]

Lastly, the New Jersey Coalition of Automotive Retailers also accused Tesla of misleading consumers by describing its Autopilot system as a “Self-Driving” solution and listing incentives and estimated gas savings in its vehicle pricing. “There is simply no justifiable basis for the State to continue to permit Tesla’s conduct here. When taken together, the actions make it clear that state defendants have chosen to actively ignore Tesla’s unlawful acts and have permitted them to continue,” the coalition wrote in its complaint. 

Similar to its other allegations, the dealers’ complaints about Tesla appear to be the result of misinformation. For example, Autopilot, which comes standard with any Tesla except the $35,000 Model 3, is not advertised as a “self-driving” solution. Tesla’s autonomous driving suite is its Full Self-Driving system, which is separate from Autopilot. Tesla’s configurator also allows customers to view a vehicle’s default purchase price and one that includes potential savings. An explainer on incentives is also present on Tesla’s official website, where all vehicle purchases are made. 

Neither Tesla nor the New Jersey Motor Vehicle Commission has issued a comment about the recently-filed lawsuit. 

Tesla operates differently from traditional automakers since the company does not utilize a dealer network to sell its vehicles. Instead, it sells its cars directly to consumers. This allows Tesla to have full control of vehicle pricing, ensuring that the purchase price of its electric cars is regulated, while making the car buying experience as simple as possible. This strategy is akin to what is being adopted by tech companies such as Apple, whose stores provide interested customers with an opportunity to interact with its products.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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SpaceX secures FAA approval for 44 annual Starship launches in Florida

The FAA’s environmental review covers up to 44 launches annually, along with 44 Super Heavy booster landings and 44 upper-stage landings.

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Credit: SpaceX

SpaceX has received environmental approval from the Federal Aviation Administration (FAA) to conduct up to 44 Starship-Super Heavy launches per year from Kennedy Space Center Launch Complex 39A in Florida. 

The decision allows the company to proceed with plans tied to its next-generation launch system and future satellite deployments.

The FAA’s environmental review covers up to 44 launches annually, along with 44 Super Heavy booster landings and 44 upper-stage landings. The approval concludes the agency’s public comment period and outlines required mitigation measures related to noise, emissions, wildlife, and airspace management.

Construction of Starship infrastructure at Launch Complex 39A is nearing completion. The site, previously used for Apollo and space shuttle missions, is transitioning to support Starship operations, as noted in a Florida Today report.

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If fully deployed across Kennedy Space Center and nearby Cape Canaveral Space Force Station, Starship activity on the Space Coast could exceed 120 launches annually, excluding tests. Separately, the U.S. Air Force has authorized repurposing Space Launch Complex 37 for potential additional Starship activity, pending further FAA airspace analysis.

The approval supports SpaceX’s long-term strategy, which includes deploying a large constellation of satellites intended to power space-based artificial intelligence data infrastructure. The company has previously indicated that expanded Starship capacity will be central to that effort.

The FAA review identified likely impacts from increased noise, nitrogen oxide emissions, and temporary airspace closures. Commercial flights may experience periodic delays during launch windows. The agency, however, determined these effects would be intermittent and manageable through scheduling, public notification, and worker safety protocols.

Wildlife protections are required under the approval, Florida Today noted. These include lighting controls to protect sea turtles, seasonal monitoring of scrub jays and beach mice, and restrictions on offshore landings to avoid coral reefs and right whale critical habitat. Recovery vessels must also carry trained observers to prevent collisions with protected marine species.

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Texas township wants The Boring Company to build it a Loop system

The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge.”

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Credit: The Boring Company

The Woodlands Township, Texas, has formally entered The Boring Company’s tunneling sweepstakes. 

The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge,” which offers up to one mile of tunnel construction at no cost to a selected community.

The Woodlands’ proposal, dubbed “The Current,” features two parallel 12-foot-diameter tunnels beneath the Town Center corridor near The Waterway. Teslas would shuttle passengers between Waterway Square, Cynthia Woods Mitchell Pavilion, Town Green Park and nearby hotels during concerts and large-scale events, as noted in a Chron report.

Township officials framed the tunnel as a solution for the township’s traffic congestion issues. The Pavilion alone hosts more than 60 shows each year and can accommodate crowds of up to 16,500, often straining Lake Robbins Drive and surrounding intersections.

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“We know we have traffic impacts and pedestrian movement challenges, especially in the Town Center area,” Chris Nunes, chief operating officer of The Woodlands Township, stated during the meeting.

“The Current” mirrors the Loop system operating beneath the Las Vegas Convention Center, where Tesla vehicles transport passengers through underground tunnels between venues and resorts.

The Boring Company issued its request for proposals (RFP) in mid-January, inviting cities and districts to pitch local uses for its tunneling technology. The Woodlands must submit its application by Feb. 23, though no timeline has been provided for when a winning community will be announced.

Nunes confirmed that the board has authorized a submission for “The Current’s” proposal, though he emphasized that the project is still in its preliminary stages.

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“The Woodlands Township Board of Directors has authorized staff to submit an application to The Boring Company, which has issued an RFP for communities interested in leveraging their technology to address community challenges,” he said in a statement. 

“The Board believes that an underground tunnel would provide a safe and efficient means to transport people to and from various high-use community amenities in our Town Center.”

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Tesla Model Y wins 2026 Drive Car of the Year award in Australia

The Model Y is already Australia’s best-selling EV in 2025 and the tenth best-selling vehicle overall.

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Credit: Tesla

The Tesla Model Y has been named 2026 Drive Car of the Year overall winner, taking the top honor after being judged as the vehicle that “moves the game forward the most for Australian new car buyers.” 

The Model Y is already Australia’s best-selling EV in 2025 and the tenth best-selling vehicle overall, but the vehicle’s Juniper update strengthened its case with new ownership benefits and expanded software capability.

Drive’s overall award compares category winners and looks at which model most significantly advances the local new car market. In 2026, judges pointed to the Model Y’s five-year warranty and the availability of Full Self-Driving (Supervised) as a monthly subscription as key differentiators.

Priced from AU$58,900 before on-road costs, the all-electric crossover SUV offers a lot of value compared to similarly sized petrol and hybrid rivals. The ability to access Tesla’s Supercharger network across Australia also reduces friction for buyers moving to EV ownership.

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Owners can add FSD (Supervised) for AU$149 per month. While it still requires driver oversight, the system expands the vehicle’s advanced driver-assistance capabilities and reflects Tesla’s software-first approach.

“The default choice for a reason. The Tesla Model Y makes the transition to electric both effortless and rewarding,” Drive wrote.

The 2025 Model Y facelift also sharpened the vehicle’s exterior, highlighted by a distinctive rear light bar that gives the crossover SUV a more modern road presence.

Drive described the Model Y as a benchmark for combining practicality, efficiency and technology at an accessible price point. With eligibility for federal Fringe Benefit Tax exemptions through novated leasing, its value proposition has improved for numerous buyers.

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For 2026, the Model Y’s combination of range efficiency, charging access and software capability proved decisive. Ultimately, the award all but cements the Model Y’s position as one of the most influential vehicles in Australia’s evolving new-car market today.

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