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US state hosting Tesla’s Cybertruck factory targets EV owners with higher fees
Texas may have welcomed Tesla warmly with its support for the electric car maker’s Gigafactory TX project, but the state, or at least some of its officials, still seem to operate under the premise that EV adoption is something that could be stopped. This was highlighted recently by Rep. Ken King, a Panhandle Republican who wishes to add fees imposed on electric vehicle drivers in the state.
Under King’s proposal, electric car owners would be hit with an additional $200 registration and annual renewal fee to help shore up the state’s road funds, which rely on gas taxes. King’s proposal also penalizes owners of hybrid vehicles, though not as much, with the representative suggesting an additional $100 for registrations and renewals.
As noted in a report from the Houston Chronicle, revenue from the proposed additional EV registration and renewal fees would be going to the state highway fund. The Texas Comptroller has reported about $14.2 billion in revenue during 2019, and estimates suggest that 2020 revenues would be at around $14.6 billion.
Drivers of gas-powered vehicles in Texas pay a state tax of $0.20 per gallon, which is used to support the highway fund. As vehicles became more efficient and amidst the emergence of electric cars and hybrids, however, the state’s annual gas tax revenues have flattened and even declined. During the fiscal year 2020, Texas collected $2.6 billion in gas tax revenue. That’s about 7% less than the $2.8 billion collected in the fiscal year 2019.
King is not only aiming for higher EV registrations and renewals, either. This week, he also introduced a bill that would add a $0.01 tax to every kWh of energy generated by wind, solar, coal, and nuclear power. Interestingly enough, power generated from natural gas sources would be exempt under King’s bill.
If the Texas representative’s efforts prove successful, car buyers in the state may very well be disenchanted to purchase all-electric vehicles, especially considering that one of the most notable advantages of EVs is their affordable operating costs. By imposing higher fees on electric cars, the state would give the impression that it is more financially sound for consumers to go for gas guzzlers instead.
In several other states where EVs are targeted with extra fees, the additional charges could climb so high that electric car owners can end up paying more than what they would have paid in gas taxes had they owned fossil fuel-powered cars instead. Consumer Reports noted that in some cases, EV owners end up paying up to four times more than what they would have paid in gas taxes.
Overall, the proposal from the TX official is unfortunate, especially considering that Tesla is building its roots in the state. Gigafactory Texas is poised to be the electric car maker’s most impressive vehicle production facility yet, and it would build what could very well be the defining EV of the post-Tesla Model S era. The Cybertruck is a unique all-American vehicle that will be made in Texas, after all, so it would be pretty nonsensical if the vehicle ends up costing its buyers more in registration and renewal fees just because it doesn’t pollute the air.
Elon Musk
Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package
The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla.
The Delaware Supreme Court has overturned a lower court ruling, reinstating Elon Musk’s 2018 compensation package originally valued at $56 billion but now worth approximately $139 billion due to Tesla’s soaring stock price.
The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla. Musk quickly celebrated the outcome on X, stating that he felt “vindicated.” He also shared his gratitude to TSLA shareholders.
Delaware Supreme Court makes a decision
In a 49-page ruling Friday, the Delaware Supreme Court reversed Chancellor Kathaleen McCormick’s 2024 decision that voided the 2018 package over alleged board conflicts and inadequate shareholder disclosures. The high court acknowledged varying views on liability but agreed rescission was excessive, stating it “leaves Musk uncompensated for his time and efforts over a period of six years.”
The 2018 plan granted Musk options on about 304 million shares upon hitting aggressive milestones, all of which were achieved ahead of time. Shareholders overwhelmingly approved it initially in 2018 and ratified it once again in 2024 after the Delaware lower court struck it down. The case against Musk’s 2018 pay package was filed by plaintiff Richard Tornetta, who held just nine shares when the compensation plan was approved.
A hard-fought victory
As noted in a Reuters report, Tesla’s win avoids a potential $26 billion earnings hit from replacing the award at current prices. Tesla, now Texas-incorporated, had hedged with interim plans, including a November 2025 shareholder-approved package potentially worth $878 billion tied to Robotaxi and Optimus goals and other extremely aggressive operational milestones.
The saga surrounding Elon Musk’s 2018 pay package ultimately damaged Delaware’s corporate appeal, prompting a number of high-profile firms, such as Dropbox, Roblox, Trade Desk, and Coinbase, to follow Tesla’s exodus out of the state. What added more fuel to the issue was the fact that Tornetta’s legal team, following the lower court’s 2024 decision, demanded a fee request of more than $5.1 billion worth of TSLA stock, which was equal to an hourly rate of over $200,000.
Delaware Supreme Court Elon Musk 2018 Pay Package by Simon Alvarez
News
Tesla Cybercab tests are going on overdrive with production-ready units
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the vehicle being reported across social media this week.
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the autonomous two-seater being reported across social media this week. Based on videos of the vehicle that have been shared online, it appears that Cybercab tests are underway across multiple states.
Recent Cybercab sightings
Reports of Cybercab tests have ramped this week, with a vehicle that looked like a production-ready prototype being spotted at Apple’s Visitor Center in California. The vehicle in this sighting was interesting as it was equipped with a steering wheel. The vehicle also featured some changes to the design of its brake lights.
The Cybercab was also filmed testing at the Fremont factory’s test track, which also seemed to involve a vehicle that looked production-ready. This also seemed to be the case for a Cybercab that was spotted in Austin, Texas, which happened to be undergoing real-world tests. Overall, these sightings suggest that Cybercab testing is fully underway, and the vehicle is really moving towards production.
Production design all but finalized?
Recently, a near-production-ready Cybercab was showcased at Tesla’s Santana Row showroom in San Jose. The vehicle was equipped with frameless windows, dual windshield wipers, powered butterfly door struts, an extended front splitter, an updated lightbar, new wheel covers, and a license plate bracket. Interior updates include redesigned dash/door panels, refined seats with center cupholders, updated carpet, and what appeared to be improved legroom.
There seems to be a pretty good chance that the Cybercab’s design has been all but finalized, at least considering Elon Musk’s comments at the 2025 Annual Shareholder Meeting. During the event, Musk confirmed that the vehicle will enter production around April 2026, and its production targets will be quite ambitious.
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Tesla gets a win in Sweden as union withdraws potentially “illegal” blockade
As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Swedish union Vision has withdrawn its sympathy blockade against Tesla’s planned service center and showroom in Kalmar. As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Vision’s decision to pull the blockade
Vision announced the blockade in early December, stating that it was targeting the administrative handling of Tesla’s facility permits in Kalmar municipality. The sympathy measure was expected to start Monday, but was formally withdrawn via documents sent to the Mediation Institute and Kalmar Municipality last week.
As noted in a Daggers Arbete report, plans for the strike were ultimately pulled after employer group SKR highlighted potential illegality under the Public Employment Act. Vision stressed its continued backing for the Swedish labor model, though Deputy negotiation manager Oskar Pettersson explained that the Vision union and IF Metall made the decision to cancel the planned strike together.
“We will not continue to challenge the regulations,” Petterson said. “The objection was of a technical nature. We made the assessment together with IF Metall that we were not in a position to challenge the legal assessment of whether we could take this particular action against Tesla. Therefore, we chose to revoke the notice itself.”
The SKR’s warning
Petterson also stated that SKR’s technical objection to the Vision union’s planned anti-Tesla strike framed the protest as an unauthorized act. “It was a legal assessment of the situation. Both for us and for IF Metall, it is important to be clear that we stand for the Swedish model. But we should not continue to challenge the regulations and risk getting judgments that lead nowhere in the application of the regulations,” he said.
Vision ultimately canceled its planned blockade against Tesla on December 9. With Vision’s withdrawal, few obstacles remain for Tesla’s long-planned Kalmar site. A foreign electrical firm completed work this fall, and Tesla’s Careers page currently lists a full-time service manager position based there, signaling an imminent opening.
Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package
Tesla Cybercab tests are going on overdrive with production-ready units
