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Tesla Motors 2015 Strategy to Fight Dealer Laws, Stay Aggressive

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Source: Associate Press

Would Tesla ever build cars in Michigan? Musk: “It’s not out of the question. Maybe Michigan shouldn’t stop us from selling cars here.” (Image: Courtesy of Associate Press)

I was following the Elon Musk press conference from the International Car show via the Detroit Free Press on Tuesday afternoon and a whole lot of topics were addressed, including the Model X, dealership strategy, China sales, the Gigafactory and GAAP financials, among others.

During the interview portion of the event, Musk had the whole room laughing when he said (paraphrasing) “if I keep talking, we’ll be out of business very soon,” referring to Tesla’s stock sell-off once he said China sales numbers for December were down.

Musk also stated that “Tesla can make a few million cars a year by 2025.” If that happens, one would presume Tesla will be selling in all 50 states by 2025.

Musk responded to a dealership question and made a point of stating, “we need to have our own stores first,” before selling via dealerships. Musk’s subtle insistence on having his own stores, at first, didn’t make impression but could signify its stance with state legislators going forward.

Today, Rep. Tony Guerrera, a Democratic co-chairman of the Legislature’s Transportation Committee of Connecticut, proposed a new bill to allow the Tesla Motors to sell directly to the consumer. A supporter of that bill, Republican Art Linares, says,” “I think that Tesla is an innovative business. They’re creating jobs across the country. It’s a great vehicle. Just by passing this bill, we can create jobs here in Connecticut.”

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Also noticeable in the Connecticut Tesla bill article is Tesla's lobbying or rebuttal to the state dealership association. It's usually non-existent in articles or maybe a blog post from Elon Musk.

In the article, James Chen, vice president for regulatory affairs at Tesla, says, "This is Tesla trying to introduce new technology, frankly what we believe to be a superior technology. The dealers should be embracing the idea of an American company trying to come in.”

Chen also counters the dealer association's assertion of what if Tesla goes out of business? Where will the Tesla owners go for service? According to the article, "Chen called it almost laughable that dealers are pitching themselves as the consumer’s advocate, saying there’s no guarantee they will remain in business."

So am I reading into his statement about "more of our stores" in Detroit and a more aggressive company response in Connecticut? Not sure yet, but as 2015 progresses, senators and ambitious representative might see the light in making the right call or aligning themselves with their principles, instead of ancient dealer laws.

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And, I'll leave you this from yesterday's conference:

Reporter: Would Tesla ever build cars in Michigan?

Musk: "It's not out of the question. Maybe Michigan shouldn't stop us from selling cars here."

Related Content:
God Save the Luddites, Anti-Tesla Opponents Exposed

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"Grant Gerke wears his Model S on his sleeve and has been writing about Tesla for the last five years on numerous media sites. He has a bias towards plug-in vehicles and also writes about manufacturing software for Automation World magazine in Chicago. Find him at Teslarati

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Tesla Semi enters new Pilot Program with interesting challenge

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Credit: PTI

The Tesla Semi is entering a new Pilot Program with Paper Transport, LLC (PTI), a Wisconsin-based transportation provider. The company will test the Semi’s Long Range configuration through “dedicated operations within the Chicago market.”

Chicago presents an interesting challenge for the Semi, as it will be a colder-weather climate that will test the Semi’s ability to operate in lower temperatures and in potentially large accumulations of snow. This is something Tesla has been testing with the Semi in Alaska and even in Northern California during the colder months, but Chicago will present a truly tough midwestern winter.

Tesla Semi spotted on journey home after winter performance testing

PTI says it is using the Semi to evaluate its strategy of reducing transportation emissions while maintaining performance, reliability, and cost efficiency. These are major arguments for the Semi being introduced into new fleets.

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CEO of PTI Tyler Ellison said:

“PTI has been a leader in sustainable transportation solutions for over 15 years. We take a consultative approach to helping customers identify and implement the right transportation solution for their network. Our partnership with Tesla expands our portfolio alongside renewable natural gas and intermodal, giving customers more ways to reduce Scope 3 emissions without compromising service or economics.”

PTI is far from the first company to adopt the Semi within a fleet, as Tesla entered strategic agreements with PepsiCo. and its subsidiary Frito-Lay for a Pilot Program that extended throughout the California region.

Tesla has let companies like those utilize the Semi to determine whether it would be suitable for their operations. Additionally, Tesla gets valuable information regarding the Semi’s performance, knowing what to improve and what is ideal for companies that will utilize the all-electric truck for regional and nationwide logistics.

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PTI plans to utilize the Long Range configuration, which is priced at $290,000 and features a range of approximately 500 miles, a three-motor powertrain, up to 800 kW of drive power, and consumption of just 1.7 kWh per mile.

Tesla Semi pricing revealed after company uncovers trim levels

VP of Maintenance at PTI, Bryan Ellen, added:

“We are excited to partner with Tesla, leveraging their ever-evolving technology. We are bullish in our estimation of the parallels available between our dedicated model and the efficiency of their fully electric Class 8 tractor. We anticipate a growing synergy between our businesses as we work to facilitate this sustainable solution for our customers.”

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PTI has logged more than 87 million miles using sources like compressed and renewable gas, but now is looking to take it a step further with fully electric operations.

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Tesla is building a wheelchair-accessible Robotaxi

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A beautiful spring landscape at SoFi Stadium with lush green palm trees and plants with powerful clouds at sunset in Inglewood California USA. (Credit: Tesla)

Tesla revealed on Monday that it is building a new autonomous vehicle at Gigafactory Texas, its plant just outside of the City of Austin. This particular vehicle will be geared toward those who are in need of a wheelchair-accessible car that would require no human driver for operation.

According to a new report from Wired, Tesla’s Senior Policy Advisor, India Herdman, told members of the Washington D.C. City Council on Monday:

“We are in development for a purpose-built, wheelchair-accessible autonomous vehicle. We know that paratransit can be very difficult, and people who are confined to wheelchairs permanently should still be able to move around freely, so that is an active product being built by Tesla in Texas.”

This builds upon what CEO Elon Musk said last year on X, which confirmed the company was working on accessible rides within its Robotaxi platform, which currently is confined to the Model Y.

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Tesla is also developing the Cybercab, which started employee rides last week. However, this vehicle is not necessarily geared toward wheelchair accessibility.

That leaves a major gap in the autonomous ride-sharing program that Tesla is attempting to build; the company has been pretty clear that it does not want to complicate its manufacturing lines by bringing in a wide array of body styles.

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However, it seems necessary to have something larger that could help transport people to appointments when they cannot drive. For wheelchair accessibility, the Robovan, which was unveiled at the “We, Robot” event in October 2024, seems to be the most ideal solution:

Tesla unveils the Robovan at ‘We, Robot’ event

Herdman did not indicate whether she was referring to the Robovan or if Tesla is building yet another body style that is geared toward full autonomy but also caters to the handicapped.

Tesla might need to develop something specifically for the handicapped in order to align with the Americans with Disabilities Act, which prevents discrimination against people with disabilities in transportation services. Uber was hit with a lawsuit late last year for “refusing to reasonably modify its policies, practices, or procedures where necessary to avoid discriminating against riders with disabilities.”

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Tesla would obviously like to avoid this.

It will be interesting to see what Tesla will do with this project, and whether it will introduce something new to the market or just continue with the Robovan.

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Tesla weirdly confirms Cybercab employee rides, a huge milestone

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Credit: Tesla

Tesla weirdly confirmed that its steering wheel-less and pedal-less Cybercab vehicle is now in the process of giving employees rides, a huge milestone for the vehicle program.

But the entire thing was super strange. On Friday, Tesla released a video stating that there was “Cool news from Giga Texas” and that employees were now taking rides in Cybercabs that have no manual controls. The units seen on public roads are engineering vehicles that have manual controls inside, a necessity as Tesla moved through the testing phase.

However, Tesla removed the video and reposted it shortly after with a more vague title. It seems like the employee rides are still going, but the video was adjusted slightly. The initial upload showed employees doing things like watching movies and adjusting the climate, but these snippets were removed in the second upload.

Both images below were uploaded with the first video, but were removed after Tesla re-uploaded the announcement. These are not available in the second upload

tesla cybercab with no manual controls showing a movie with two employees inside

Credit: Tesla

tesla cybercab with no manual controls showing a movie with two employees inside

Credit: Tesla

Nevertheless, the announcement from Tesla is that the Cybercab is operating with employees inside who can control the vehicle’s audio, video, climate, and destination settings through their smartphone app.

Tesla has already been testing Cybercab engineering units, but last month, it was able to self-certify for SAE Level 4, which would enable unsupervised self-driving in Texas. The company is moving toward that, and the plans have always been to launch Cybercab rides this year.

The Cybercab is potentially looked at as the next generation of Tesla’s mobility leg. For the past 15 years, the company has been known as somewhat of an automaker, among many other things. However, these passenger vehicles that Tesla has manufactured are now moving into a new realm, as they will eventually drive themselves with no supervision thanks to the Full Self-Driving suite.

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Tesla flexes how it will help the blind with Cybercab

The Cybercab is just the next step of that: a true vehicle developed for the sole purpose of ride-hailing. It has no human controls, it has only two seats, and it will get passengers from Point A to Point B with no awkward driver, no need for manual inputs, and with no stress.

Tesla is moving forward with other developments related to the Cybercab project as well. However, the big announcement will come when Tesla finally announces that it is launching Cybercab rides to the general public, something that it plans to launch either late this year or early 2027.

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