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Tesla Model S and X owners face discrimination at dealer-run auto show
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.
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,
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.
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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.
“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.
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In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
