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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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Elon Musk

Elon Musk hints at “official ceremony” with throwback photo to close Tesla Model S, Model X chapter

Elon Musk promises an official ceremony to mark the end of Tesla Model S and Model X production.

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lon Musk at the Tesla Model S production launch at the Fremont factory, June 2012. Photo shared by Musk on X, March 2026.

Tesla has officially begun winding down production of the Model S and Model X, sending farewell emails to U.S. customers on March 27 and updating the website to reflect the end of the line. Shoppers visiting Tesla.com now find only a limited set of Model S and Model X inventory units available for purchase, with no option to configure  a new factory build. The move formalizes what CEO Elon Musk announced on the company’s Q4 2025 earnings call in January, when he said it was “time to basically bring the Model S and X programs to an end with an honorable discharge.”

Musk posted on X a throwback photo of himself speaking at the Model S production launch in 2012, and noting “We will have an official ceremony to mark the ending of an era. I love those cars.”

The mention of an official ceremony is notable. Tesla has not held a formal farewell event for a vehicle before, and Musk’s wording suggests this will be something deliberate rather than a quiet line shutdown. Given that Musk’s X post shows a photo of him on stage with a microphone in front of an audience at the Fremont factory, it wouldn’t be too far-fetched to expect a closing ceremony to take place at the same location. Perhaps? Whether it becomes a public event, a private gathering for employees, or a livestreamed moment on X remains to be seen.

The Model S first went on sale nearly fifteen years ago and was Tesla’s first fully in-house designed vehicle, proving that an electric car could be fast, desirable, and capable of long distance on a single charge. The Model X followed in 2015, turning heads with its unmistakable and distinctive falcon-wing doors, while becoming one of the first all-electric SUVs on the market. Tesla’s two flagship vehicles would ultimately push legacy automakers to take all-electric transportation seriously and help fund development of the more affordable Model 3 and Model Y.

By 2025, however, both models had been reduced to a rounding error in Tesla’s sales figures. Musk was direct about what comes next, stating “We are going to convert that production space to an Optimus factory. It’s part of our overall shift to an autonomous future.”

Elon Musk’s $10 Trillion robot: Inside Tesla’s push to mass produce Optimus

That shift is already underway. Tesla officially started Optimus Gen 3 production at its Fremont factory in January 2026, with the line targeting a run rate of one million units per year. The Gen 3 robot features 22 degrees of freedom per hand, runs on Tesla’s AI5 chip, and shares the same neural network architecture as Full Self-Driving. A dedicated Optimus factory at Gigafactory Texas is also under construction, with a planned annual capacity of 10 million units. The production lines that once built the Model S and Model X are being converted to support that ramp.

Tesla confirmed it will continue to support existing owners with service, software updates, and parts for as long as people own the vehicles. For buyers still interested in a new example, remaining U.S. inventory is discounted and the window is closing fast.

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Elon Musk

Elon Musk announces disappointing Tesla Optimus update

In a post on X on March 31, Musk stated that Optimus 3 is mobile but requires some finishing touches before it is ready to be shown to the world. This update comes on the final day of the first quarter, a period when Tesla had previously signaled expectations for a Gen 3 reveal.

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Credit: Tesla China

Elon Musk announced a disappointing update to the unveiling of Tesla Optimus and its third-generation iteration, missing a timeline it aimed to hit in the first quarter of the year.

Musk has confirmed that the highly anticipated Optimus Gen 3 humanoid robot is already walking around and operational, yet the public unveiling will face a short delay as the company applies final refinements.

In a post on X on March 31, Musk stated that Optimus 3 is mobile but requires some finishing touches before it is ready to be shown to the world. This update comes on the final day of the first quarter, a period when Tesla had previously signaled expectations for a Gen 3 reveal.

The announcement follows reports of Optimus Gen 3 appearing at the Tesla Diner in Los Angeles, where it was observed serving and moving about until sunset. Images and videos shared by observers captured the robot in action, highlighting its progress in real-world mobility.

Tesla had aimed to showcase the production intent version of Optimus Gen 3 during the first quarter of 2026, positioning it as a major step toward factory deployment and eventual commercial availability. Musk has described the robot as featuring advanced capabilities, including highly dexterous hands with significant degrees of freedom, powered by Tesla’s AI systems for complex tasks.

This minor postponement aligns with Tesla’s iterative approach to development. Earlier statements from Musk indicated that Gen 3 would represent the most advanced humanoid robot yet, designed primarily for internal factory use before scaling to external customers.

Elon Musk’s $10 Trillion robot: Inside Tesla’s push to mass produce Optimus

Production timelines point toward low-volume output starting in the summer of 2026, with volume ramp-up targeted for 2027. The delay underscores the company’s commitment to quality over speed, ensuring the robot meets rigorous standards for safety and performance in practical environments.

Optimus represents a cornerstone of Tesla’s long-term vision beyond electric vehicles. Musk has repeatedly emphasized that successful humanoid robotics could transform industries by addressing labor shortages and enabling new forms of productivity.

Competitors in the space continue to advance their own platforms, yet Tesla’s vertical integration, from custom actuators to end-to-end AI training, positions Optimus as a potential leader. Community reactions on social media range from excitement over visible progress to impatience with shifting timelines, a familiar pattern in Tesla’s innovation journey.

Investors and enthusiasts view Optimus as critical to Tesla’s valuation, potentially surpassing its automotive business in scale. With the robot already demonstrating walking and basic interactions, the finishing touches likely involve software polishing, hardware fine-tuning, and reliability enhancements.

Musk’s update suggests the reveal could arrive in the coming weeks or months, maintaining momentum toward broader deployment.

As Tesla pushes the boundaries of physical artificial intelligence, this latest development keeps Optimus in the spotlight. The company continues to prioritize rapid iteration while delivering on its promises to shareholders and customers. The robotics revolution at Tesla appears closer than ever, promising profound impacts on manufacturing, services, and daily life in the years ahead.

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Elon Musk

Countdown: America is going back to the Moon and SpaceX holds the key to what comes after

NASA’s Artemis II launches Wednesday, sending humans near the Moon for the first time since 1972.

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For the first time since Apollo 17 touched down on the lunar surface in December 1972, the United States is sending humans back toward the Moon. NASA’s Artemis II mission is set to launch as early as this week from Kennedy Space Center in Florida, carrying four astronauts on a 10-day journey around the Moon and back to Earth. It will not land anyone on the surface this time, but it is the first crewed flight in over half a century to travel beyond low Earth orbit, and it sets the stage for Elon Musk’s SpaceX missions to follow.

The mission uses NASA’s Space Launch System rocket and the Orion spacecraft, which will fly around the Moon before splashing down in the Pacific Ocean around April 10. For context, an uncrewed Artemis I flew the same path in 2022, proving the hardware worked. Artemis II now tests it with people aboard.

According to NASA’s official countdown blog, launch preparations are on track with an 80 percent chance of favorable weather. “Hey, let’s go to the moon!” Commander Wiseman told reporters upon arriving at Kennedy Space Center.

Source: NASA

Beyond Artemis II lies the lander question, and that is where SpaceX enters directly. In 2021, NASA awarded SpaceX a $2.89 billion contract to develop the Starship Human Landing System, a modified version of Starship designed to ferry astronauts from lunar orbit to the surface. The original plan called for SpaceX to deliver that lander for Artemis III, which was to be the first crewed lunar landing. Timing for Starship development, however, caused NASA to restructure the mission sequence entirely.

Before SpaceX’s Starship Human Landing System (HLS) can put anyone on the Moon, it has to solve a problem no rocket has demonstrated at scale, which is refueling in orbit. Because the Starship HLS requires approximately ten tanker launches worth of propellant loaded into a depot in low Earth orbit before it has enough fuel to reach the lunar surface, SpaceX plans to conduct this refueling process using its upgraded V3 Starship. And until that demonstration flies and succeeds, the Starship moon lander remains a question mark.

SpaceX’s Starship V3 is almost ready and it will change space travel forever

In February 2026, NASA Administrator Jared Isaacman confirmed that Artemis III, now planned for mid-2027, and will instead test lunar landers in low Earth orbit, with the actual landing pushed to Artemis IV that’s targeted for 2028.

Musk responded to earlier criticism of SpaceX’s schedule by posting on X that his company is “moving like lightning compared to the rest of the space industry,” and added that “Starship will end up doing the whole Moon mission.” The contract competition was also reopened in October 2025 by then NASA chief Sean Duffy, who cited Starship’s delays and said the agency needed speed given China’s own stated goal of landing astronauts on the Moon by 2030.


Artemis came from the first Trump administration’s 2017 Space Policy Directive 1, which directed NASA to return humans to the Moon. The program picked up pace through the 2020s, with the Orion spacecraft and SLS taking years to develop at enormous costs. SpaceX entered the picture in 2021 as the chosen lander contractor, tying the commercial space sector into what had historically been an all government undertaking.

Whether SpaceX’s Starship ultimately carries astronauts to the lunar surface or shares that role with Blue Origin’s competing lander, this week’s Artemis II launch is the necessary first step. Getting four humans to the Moon’s vicinity and back safely is the proof of concept everything else depends on.

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