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Tesla White House Petition Response Falls on Deaf Ears

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Tesla Motors direct sales proponents sent a “We the People Petition on Tesla Motors” petition to the White House asking the government to let the company sell directly to consumers. In typical modern politics, the Tesla White House response was vague, slippery and off-topic, showing once more how disconnected modern politics are from the constituent’s wishes.

Tesla White House petition response

Sometimes, the modern state of politics is enough to discourage even the most ardent liberty defender. The We the People Petition on Tesla Motors petition gathered only a few signatures, 138,469. The Tesla White House response seems to pass the bucket down. You can read the We the People Petition on Tesla Motors below. More than a year after its filing, according to ArsTechnica, the official White House response was signed by Dan Utech, Special Assistant to the President for Energy and Climate Change. The answer boils down to, it’s up to Congress to answer this matter. The call for Tesla to sell direct is now part of the left and right political maneuvers, unfortunately.

What the Tesla White House petition response asks

The Tesla White House response clearly asks to allow Tesla Motors to sell directly to consumers in all 50 states. It bases the premise on the fact most people ask for freedom of choice and that the 60 years old dealership association requirement are woefully out of date and do not represent our fast changing landscape. People want more choice and certainly, very little people can claim very positive experiences walking out of car dealerships.

What the Tesla White House petition response doesn’t answer

Utech’s Tesla White House response, goes into tangents about how the current administration has done a great job improving the choice in America and saving the environment. But it still views EV drivers as environmentalists. It’s fair to say that most Tesla drivers are more tech savvy than environmentalists. The spin Meisters response further dives and twists, avoiding to answer the petition directly. The answer hits rock bottom when it mentions: “significant progress in promoting vehicle efficiency”, talking about gasoline car, completely unrelated to the pure electric car Tesla Motors sells. To drive the point further, it states something every Tesla Motors loyalist knows by now, that the company repaid its loan nine years ahead of schedule.

This leaves us to wonder two things. Does democracy still have a place where lobbies command more decision making than what the constituents demand from their representatives, or was this befuddling answer because only 138,469 signed the petition? In the meantime, the Tesla White House response to selling directly just puts pressure on Congress.

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The We the People Petition on Tesla Motors petition response

tesla-white-house-petition

“Thanks for your We the People petition. We’re excited about the next generation of transportation choices, including the kind of electric vehicles that Tesla and others have developed. These companies are taking steps to help spur innovation in the promising area of advanced batteries and electric automobiles. Vehicle electrification and other advanced technologies are vital components of President Obama’s Climate Action Plan, and his commitment to addressing climate change and reducing carbon pollution, in addition to reducing our dependence on oil.

But as you know, laws regulating auto sales are issues that have traditionally sat with lawmakers at the state level.

We believe in the goal of improving consumer choice for American families, including more vehicles that provide savings at the pump for consumers. However, we understand that pre-empting current state laws on direct-to-consumer auto sales would require an act of Congress.

We are already making significant progress in promoting vehicle efficiency: new vehicle fuel economy has increased by 12% since 2008 and consumers now can choose from five times more car models with a combined city/highway fuel economy of 30 mpg or more, compared to just five years ago. In December 2013, the Environmental Protection Agency (EPA) announced that model year 2012 vehicles achieved an all-time high fuel economy, after increasing seven of the last eight years.

The President has taken historic action to spur more consumer choice — saving consumers money at the pump and reducing our dependence on oil. Here are some of the ways we’re helping to encourage the future generation of energy-efficient cars:

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In 2012, the Obama Administration finalized groundbreaking standards that will increase fuel economy to the equivalent of 54.5 mpg for cars and light-duty trucks by Model Year 2025. These standards will save consumers more than $1.7 trillion at the gas pump and reduce U.S. oil consumption by 12 billion barrels. And this spring, we also released standards for medium- and heavy-duty trucks, a move that will save vehicle owners and operators an estimated $50 billion in fuel, and save a projected 530 million barrels of oil. You can learn more about that here.

The Department of Energy (DOE) has a loan program to help spur the kinds of innovation needed to create the future of transportation. In fact, Tesla’s electric car won the 2013 Motor Trend Car of the Year while repaying its DOE loan 9 years early and earning the taxpayers about $17 million in profit. And DOE’s loan to Ford Motor Company to upgrade 13 factories across six states and to upgrade the fuel efficiency of a dozen popular vehicles has supported 33,000 jobs across the United States.

In September 2013, DOE awarded $45 million in funding for 38 new projects that to improve fuel efficiency, lower transportation costs, and protect the environment. The 38 new projects support the goals of the EV Everywhere Grand Challenge, a public-private initiative to make EVs as affordable and convenient to own and drive as gasoline-powered vehicles within 10 years. Also as part of EV Everywhere, DOE has launched the Workplace Charging Challenge, with a goal of achieving a tenfold increase in the number of U.S. employers offering workplace charging for plug-in electric vehicles in the next five years.

As these initiatives show, the Administration is in favor of fostering competition in the market to help spur the kinds of innovation needed to support ongoing U.S. leadership in vehicle manufacturing and a potential range of new technologies.

Again, thank you for your petition.

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Dan Utech is Special Assistant to the President for Energy and Climate Change”

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Investor's Corner

Tesla stock closes at all-time high on heels of Robotaxi progress

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Credit: Tesla

Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.

The price beats the previous record close, which was $479.86.

Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.

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This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.

Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing

It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.

Shares closed up $14.57 today, up over 3 percent.

The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.

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However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.

Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.

Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.

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Tesla needs to come through on this one Robotaxi metric, analyst says

“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”

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Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.

Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.

However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.

The analyst said:

“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”

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Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.

There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.

This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.

Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing

CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.

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Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.

Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.

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Investor's Corner

Tesla gets bold Robotaxi prediction from Wall Street firm

Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.

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Credit: Tesla

Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.

Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.

Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.

Tesla expands Robotaxi app access once again, this time on a global scale

By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.

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He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:

  1. Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
  2. Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
  3. Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.

Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.

Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.

So far, the program, which is active in Austin and the California Bay Area, has been widely successful.

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