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Tesla Model S and X owners face discrimination at dealer-run auto show

(Photo: James Ransom/The Drive)

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A number of Tesla owners are calling foul on the organizers of the 2019 Kansas City Auto Show after the event’s organizers, the Automobile Dealers Association of Greater Kansas City (ADAKC), showed discrimination against a Model S and Model X by forcing the electric cars out of the event.

The annual exhibition is being held at the Bartle Hall convention center, and since the auto show itself did not fill the entire venue, the ADAKC allocated the south end of the exhibit hall to the Kansas City Auto Museum. The museum reached out to the local auto enthusiast community to look for volunteers who wish to display their vehicles as part of the event. Numerous locals answered the call, bringing their cars over to be part of the show. Among these vehicles were a Tesla Model S and Model X.

Tesla enthusiast James Ransom prepared the two electric cars for the auto show, dropping them off at the exhibition’s location. The next day, he received a call from the event’s organizers informing him that the Teslas are not welcome in the event. Ransom explained the circumstances in a statement to The Drive.

“I was called on Wednesday evening and asked to remove the Teslas. I was told that the cars were not allowed to stay because they were not part of the Dealers Association. Something about a higher-up in the association who said that the Teslas could not be at the show due to the manufacturer not using dealerships for their sales,” Ransom said.

(Photo: James Ransom/The Drive)

Fellow Tesla owner and prominent Kansas-based auto enthusiast Ken Smiley, whose 1956 Jaguar XK140 and 2016 Porsche GT4 are on display at the show, noted in an email to Teslarati that the ADAKC’s excuse for the removal of the two electric cars was questionable at best. Smiley mentioned in an email that there were several other vehicles on display from manufacturers who were not part of the ADAKC, such as Noble, Pontiac, Ariel, and Lamborghini. All these vehicles were welcomed and allowed to remain.

To address the situation, Ken sent an email to the organizers, calling them out on the discriminatory practice. Below is the Tesla owner’s email in full.

Dear Larry and Natalie,

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It has come to my attention that a particular make of automobile is being singled out for unfair discrimination at the KC Auto Show this year and that the owners of these cars were asked to remove them from Bartle Hall. The vehicles in question were two used Tesla automobiles owned by private individuals and put on display as part of the KC Auto Museum’s variety of cars display at the KC Auto Show. As an officer/member in multiple car clubs in Kansas City (Porsche, Jaguar, All British, Tesla) I find this action reprehensible and urge you to immediately reconsider your actions before something like this goes viral and brings negative publicity to the car show.

I understand that with regard to NEW cars that Tesla does not have a dealer network and does not participate in the Automobile Dealer Association of Greater Kansas City. I would understand if your association told Tesla that they could not bring new cars down and could not be represented at the show unless they joined the organization. However, this is NOT what is happening in this instance. These two cars are privately owned used cars brought by their enthusiastic owners to help support the KC Auto Museum display at the auto show. There were owners who brought Pontiacs, a Noble, a couple of Ariel Atoms and Lamborghinis ALL of which are NOT members of the ADAKC. So if you are going to discriminate against non-members, then you need to do it equally and ask that ALL non-member cars leave the show, not simply single out Tesla.

Please let me know whether or not the Teslas are welcome to come back or if the unfair discrimination against these owners and their vehicles is going to continue. Speaking of the owners, the people you are hurting are automotive enthusiasts, not the audience you want to hurt. These individuals took their time to clean up their cars and transport them down to Bartle Hall only to be told a few hours later that they had to take them back out. While I currently have two cars on display at the show (1956 Jaguar XK140 and 2016 Porsche GT4) I am not sure that I will be willing to support a show in the future that unfairly discriminates against a certain model car. I hesitate to think how Marion Battaglia would react if I told him that either my Jag or Porsche was being discriminated against and being asked to leave the show. As I mentioned, this unfair discrimination isn’t hurting Tesla the car company, which the association may have an issue with, but rather hurting individual automotive enthusiasts.

Sincerely,

Ken

The auto enthusiast notes that the ADAKC has not responded to his email yet. Due to the incident and the blatant act of discrimination, Ken notes that numerous car fans and Tesla owners are boycotting the event to show their frustration at the organizers. An ADAKC spokesperson did issue a statement to The Drive, but based on the organization’s stance, it appears that they are putting the blame on the offended Tesla enthusiasts.

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“This is a non-story. Ken Smiley is simply bringing this up because he seems to be angry and wants to stir the pot,” the spokesperson said, adding that the two Teslas do not fit the “Classic Car” theme of the exhibition. When pressed by the publication why other modern vehicles from non-ADAKC members, such as Ariel Atoms and Lamborghini Huracans, were allowed to remain, the spokesperson was less certain, stating that they “had to talk to the show’s producer.”

The 2019 Kansas City Auto Show was held from March 6-10, 2019.

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 calls Earth’s data centers “peanuts” next to what SpaceX is planning in orbit

Elon Musk says SpaceX capex efficiency is underestimated as orbital data centers loom by 2028.

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Elon Musk is pushing back on one of the biggest worries hanging over SpaceX stock. In a reply on X on Sunday, Musk said the company’s capital expenditure efficiency is severely underestimated. He was responding to a Milk Road Stocks post citing analyst Kyle Reidhead, who estimates SpaceX will need to spend roughly $470 billion over the next five quarters.

Reidhead built that figure around the target SpaceX set on its third quarter earnings call: 13 gigawatts or more of compute by the end of 2027. In his breakdown, Nvidia captures 83 to 89 percent of the spending. SpaceX ended the quarter with 1.7 GW of nameplate compute and guided to $35 billion to $40 billion in fourth quarter capex, as Teslarati reported.

Musk did not attach a number to his claim, but the earnings call shows the argument. CFO Bret Johnsen said new compute currently pays for itself in under a year at today’s pricing, and Musk said that window could shrink to six months next year. Using that pace, Reidhead argues about $230 billion of the $470 billion could come from operating cash flow and about $60 billion from SpaceX’s roughly $90 billion cash pile, leaving around $180 billion to borrow. Musk confirmed last week that SpaceX had already closed a new $40 billion debt raise to buy GPUs.

The ground buildout is not the end goal. It is what is meant to pay for the move to orbit. Replying on Friday to charts built from Sequoia partner Shaun Maguire’s SpaceX model, Musk wrote that “Terrestrial compute will be peanuts compared to orbital compute,” adding that orbital compute deployed per month “probably exceeds terrestrial around the end of 2028 and then far exceeds it in 2029.”

Maguire’s model shows how steep that path is. It has capex climbing from $88 billion this year to $290 billion in 2027 and $369 billion in 2028, with SpaceX burning $77.8 billion in cash this year and $122.6 billion next year before turning $114.9 billion cash positive in 2028. Musk’s response to the model was, “I think we can do better.”

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The orbital half runs through Starmind. SpaceX plans to operate up to 1 million AI satellites flying in clusters of about 10, linked by roughly 10 terabits of bandwidth, with deployment of thousands of units starting as soon as late 2027 out of its Gigasat factory in Bastrop, Texas, according to SpaceX’s space safety page. Musk has said each Starmind spacecraft will carry more than 250 kW of solar power.

Getting there depends on launch volume. Maguire’s model assumes 250 Starship flights in 2028, up from two this year and 38 next year. The nearer test is financial: SpaceX guided to $33 billion to $37 billion in first quarter 2027 revenue, more than double the $14.58 billion it booked in Q3, and Musk reposted that guidance again on Sunday morning.

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SpaceX President to gift Trump Accounts her SpaceX stock

Gwynne Shotwell’s 2 million SpaceX shares are headed to children’s Trump Accounts starting this December.

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Concept rendering of SpaceX President Gwynne Shotwell overlooks the company’s Hawthorne, California headquarters as an American flag flies over the campus at sunset.

SpaceX President Gwynne Shotwell said Friday that more than 2 million SpaceX shares belonging to her and her husband, Robert, will be distributed to children’s Trump Accounts in December, turning a pledge she made over the summer into an actual transfer. “Robert and I are thrilled that our gift of over 2 million shares of SpaceX stock will be distributed to children’s Trump accounts in December!” Shotwell wrote on X, adding that the shares are “transferring to escrow as we speak.”

The first round goes to children aged 11 to 17 who live in ZIP codes where the median family income is $57,000 or less, along with kids in ZIP codes with too few residents for the Census to report that figure. Shotwell said those families should receive a notice by Monday, Reuters reported.

A second gift is expected to be finalized in the next few weeks. That round will cover eligible children in military families serving overseas, children in foster care, and more kids in Texas counties near the Shotwells’ home where median family income is $90,000 or less. Elon Musk replied to the announcement with “Cool” and a heart emoji.

Shotwell first announced the donation on July 6, less than a month after SpaceX priced its record IPO at $135 per share on the Nasdaq. IPO filings showed Shotwell owned about 12.6 million SpaceX shares, Quartz reported at the time, which makes the gift roughly one sixth of her stake. At the roughly $146 per share used to value Musk’s own pledge earlier this month, 2 million shares are worth about $290 million.

How the stock would actually reach the accounts had been an open question since July. Treasury guidance acknowledged that stock donations could flow into Trump Accounts, but it did not explain the mechanics for a program whose contributions default into an S&P 500 index fund. Shotwell thanked the Treasury, the IRS, the Dell Foundation, Greater Horizons, Invest America and the law firms Morgan Lewis and Gibson Dunn for “working over the past few months to make this happen.”

The transfer also works as a dry run for a far larger gift. On October 19, Musk said he would give one of his SpaceX shares to every kid in America next year and called it “the first of many.” With roughly 72 million children in the country, that pledge is worth about $10.5 billion. President Donald Trump thanked Musk the same day and said the shares would go through Trump Accounts, though neither SpaceX nor the Treasury has published how or when that distribution will happen.

Shotwell’s recipients also fill a gap in the program itself. Trump Accounts launched on July 4, and the $1,000 Treasury deposit only goes to babies born between 2025 and 2028. Teenagers aged 11 to 17 receive no government seed money, so for many of the families getting a notice on Monday, SpaceX stock will be the first asset in the account. The accounts convert into retirement accounts when the child turns 18.

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Tesla Full Self-Driving becomes main pillar of new Referral Program

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Credit: Tesla

Tesla Full Self-Driving is now the centerpiece of the company’s newly revised Referral Program, which launched on October 29.

Instead of referring people to purchase vehicles and the referrer receiving $250 in Tesla Credit, the new program now incentivizes Full Self-Driving subscriptions.

If a Tesla owner is on an FSD trial and uses a referral code to subscribe to Full Self-Driving, the person whose Referral Link was used will receive one month of FSD (Supervised). Their code can be utilized 12 times per year, with January 1 marking the reset date.

Realistically, this means that if your Referral Code is used by 12 Tesla owners on an FSD trial, you will receive a full year of FSD for free.

The previous program made it pretty difficult to get referrals; buying a vehicle is obviously a much larger financial strain than subscribing to Full Self-Driving for a month.

Of course, the previous Referral Program also offered a tangible benefit: $250 in credits you could use on Service, Supercharging, or anything in the Tesla Shop. It truly could pay for someone’s travel for a year. It recently bought me a new backpack and a T-shirt.

However, this new program is much more attainable for those who do not have a massive online presence of a slew of friends in the Tesla community who will use the code and max out subscriptions for vehicle purchases.

The Full Self-Driving suite will now be the keystone of the Referral Program, which makes it more inclusive and more fun for everyone with an awesome benefit.

It also gives the impression that Tesla is truly focused on FSD subscriptions, something that saw a tremendous increase in volume in Q3, as 75 percent of deliveries for the quarter came with an FSD subscription attached.

Full Self-Driving data is so instrumental to the suite’s improvement that this kind of program benefits Tesla as much as it does the consumer.

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