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Tesla, Rivian still face complicated direct sales laws across U.S. states

Credit: Alex Guberman at E for Electric

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Executives from both Tesla and Rivian have commented on the decades-long fight to overturn direct vehicle sales bans across many U.S. states, reigniting a long-held conversation in the electric vehicle (EV) community about dealership policy lobbying groups and online sales models.

Tesla has managed to side-step direct sales bans in many states through legal loopholes such as leasing-only models, processing purchases as out-of-state transactions, or simply opening stores in exempted tribal territories where the company’s stores will be exempt from dealership mandates. In other states, the company is still completely prohibited from selling vehicles, such as in Louisiana, where a U.S. appeals court just upheld Tesla’s right to sue the state over the direct-sales ban in August.

In Connecticut last July, Tesla managed to open a store on sovereign Mohegan tribal land, effectively side-stepping the U.S. state’s ability to prohibit direct sales. The Connecticut Automotive Retailers Association (CARA), a dealership lobbying group, immediately spoke out against the decision, though it gained support from Governor Ned Lamont.

Elsewhere, Tesla, Rivian, and many others sporting a direct sales model also face state store limits, and some executives have recently highlighted the decades-long fight to overturn these kinds of laws.

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Other states have bans on service centers, storefronts, or both, while some only allow Tesla to sell vehicles online, though they must make deliveries through a service center. The latter includes Texas, where Tesla’s headquarters is located and where it operates a U.S. Gigafactory. As for Rivian, it faces a similar situation through its Seattle retail “Space,” since company representatives are prohibited from sharing specific details on prices or receiving orders.

As such, the state-to-state laws can be difficult for EV companies like Tesla and Rivian to wade through and operate under, so it shouldn’t come as much of a surprise when they point to dealership lobbying practices that keep them in place as being bad—or to their local teams who are working on overdrive.

Rivian CEO on state-to-state dealership laws

In a report published on Thursday, Rivian CEO RJ Scaringe said that dealership franchise laws were “as close as you can get to corruption,” as stated during a discussion with InsideEVs about whether Rivian’s recent Volkswagen partnership could let the startup work through VW dealerships. The report has reignited long-held discussions about states where Tesla, Rivian, and others aren’t allowed to operate—and seemingly due to powerful lobbying from dealership groups.

“Unfortunately, in the United States, it’s not an easy question,” Scaringe said as to the proposition of selling through VW’s dealers. “We have this horrific state-by-state level of rules that are as close as you can get to corruption.

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“I think you essentially have, like, lots of dealers have paid for laws that make it really hard for us to interact directly with the consumer,” the Rivian CEO adds.

RELATED: Tesla granted license for direct vehicle sales in Kentucky

Tesla VP of Finance on state-to-state dealership laws

As a follow-up to the story, Tesla VP of Finance Sendil Palani shared his thoughts in a post on Saturday, praising the company’s local teams in states where direct sales are actively banned:

Tesla has been pursuing the direct-to-consumer model for two decades, and it has been an enormous challenge to pursue what we believe is the best model for customers.

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I spent a portion of this past week visiting our Northeast region, and was reminded about how these laws are among our most prominent challenge for Sales and Delivery. Local teams make a heroic effort across the entire customer journey: from allowing customers to learn about our product at non-licensed locations while observing restrictions on sales activities, to managing a large flow of deliveries through a small number of licensed locations, to ensuring that we can properly perform vehicle registration paperwork for multiple states and customer circumstances at each licensed location.

Our customers have to make heroic efforts of their own, from traveling long distances to pick up their vehicle to patiently enduring any kinks in the process.

Sadly, this is common throughout much of the country, resulting in higher costs and a worse customer experience for the affected regions.

U.S. states with bans on direct sales models like at Tesla, Rivian

  • Alabama (includes service centers)
  • Arkansas
  • Connecticut (leasing is allowed; tribal land loophole)
  • Iowa
  • Kansas (includes storefronts)
  • Kentucky
  • Louisiana (Tesla allowed through special license, “service center” model)
  • Nebraska
  • New Mexico (includes service centers; tribal land loophole)
  • Oklahoma
  • South Carolina (includes service centers)
  • Texas (Tesla sells through online loophole, “service center” model)
  • West Virginia (includes storefronts)
  • Wisconsin

U.S. states with store limits on direct sales models like at Tesla, Rivian

  • Illinois (limited to 13)
  • Maryland (limited to 4)
  • Mississippi (limited to 1)
  • New Jersey (limited to 4)
  • New York (limited to 5)
  • North Carolina (limited to 6)
  • Ohio (limited to 3)
  • Pennsylvania (limited to 5)
  • Virginia (limited to 5)

What are your thoughts? Did I miss anything, or do you have a story or opinion to share regarding direct auto sales? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

DOJ echoes Tesla argument in Louisiana direct sales appeal
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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla Full Self-Driving gets first-ever European approval

Tesla owners in the Netherlands with a Full Self-Driving subscription will receive a software update “shortly,” the company said, activating the operation of the company’s semi-autonomous driving tech for the first time in Europe.

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Credit: Tesla AI | X

Tesla Full Self-Driving (Supervised) got its first-ever European approval, as the Netherlands gave the suite the green light to begin operation.

Tesla owners in the Netherlands with a Full Self-Driving subscription will receive a software update “shortly,” the company said, activating the operation of the company’s semi-autonomous driving tech for the first time in Europe.

The Dutch vehicle authority RDW granted the type approval after more than 18 months of rigorous testing on both closed tracks and public roads. FSD Supervised complies with UN R-171 standards and benefits from Article 39 exemptions under EU Regulation 2018/858. Importantly, it is not a fully autonomous vehicle.

The RDW stressed that the driver remains fully responsible and must maintain attention at all times. “Safety is paramount for the RDW,” the authority stated. “Proper use of this driver assistance system contributes positively to road safety.” Sensors monitor driver alertness, issuing warnings if eyes leave the road or hands are unavailable to take control immediately.

CEO Elon Musk also commented on the approval in a post on X, saying:

“First (supervised) FSD approval in Europe! Congratulations to the Tesla team and thank you to the regulatory authorities in the Netherlands for all of the hard work required to make this happen.”

Trained on billions of kilometers of real-world driving data, FSD Supervised allows the vehicle to handle residential streets, dense city traffic, and highways under constant supervision. Tesla’s post declared:

“It can drive you almost anywhere under your supervision – from residential roads to city streets & highways. No other vehicle can do this.”

The company added that it is “excited to bring FSD Supervised to more European countries soon.”

This national approval paves the way for broader EU adoption. Other member states can recognize the Dutch certification individually, with a potential bloc-wide rollout via European Commission committee vote anticipated by this Summer. The decision underscores Europe’s stricter safety and documentation requirements compared to U.S. self-certification.

Tesla Europe shares FSD test video weeks ahead of launch target

The Netherlands’ approval represents a pivotal step for Tesla in Europe, where complex regulations and mixed traffic have delayed rollout. Musk added that the RDW was “rigorous” in its assessment of FSD.

By proving the system’s safety in one of the continent’s most bicycle- and tram-heavy nations, Tesla positions itself to transform mobility across the EU—delivering greater convenience while keeping drivers firmly in control.

As the first domino falls, anticipation builds for FSD Supervised to reach additional countries soon.

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Tesla is using a redesigned Cybertruck battery cell to mitigate Semi challenges

It is perhaps the most recent example of Tesla using unique engineering prowess and cross-pollinating vehicle elements to solve common problems, something it does better than most companies out there.

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Credit: Tesla

Tesla revealed that it is utilizing redesigned Cybertruck battery cells in its Long Range Semi to mitigate some pertinent challenges that come with long-haul logistics.

It is perhaps the most recent example of Tesla using unique engineering prowess and cross-pollinating vehicle elements to solve common problems, something it does better than most companies out there.

Tesla’s long-awaited Semi truck is entering production at its Nevada Gigafactory, and fresh factory footage reveals a clever evolution in its battery technology.

The Long Range variant, designed for up to 500 miles of real-world range, relies on a structural battery pack that uses the same 4680-form-factor cells found in the Cybertruck.

However, Tesla engineers have completely redesigned the pack’s architecture—shifting from the flat, pancake-style modules typical in passenger vehicles to a compact, vertical cubic layout. This change isn’t just about cramming more energy into the chassis; it’s a targeted solution to one of electric trucking’s biggest headaches: range loss in cold climates.

Dan Priestley, Head of the Tesla Semi program, said:

“We’re using essentially the same cell out of Cybertruck, but our cars packs are more like a pancake. Whereas these are more like a cube. You get a lot of energy stored in a small space. You can only do this if you design the vehicle to be electric from the ground up.”

In conventional EVs, battery packs are laid out horizontally in wide, flat arrays to fit under the floor. While this works for cars and even the Cybertruck’s structural pack, it exposes a large surface area to the elements.

Heat escapes quickly, especially overnight when the truck is parked. Cold temperatures slow chemical reactions inside lithium-ion cells, reducing available energy and forcing the vehicle to expend extra power warming the battery and cabin.

Real-world tests on vehicles like the Cybertruck show winter range losses of 20-40 percent, depending on conditions. For long-haul truck drivers operating in Canada, Scandinavia, or the northern U.S., this “silent killer” means unplanned stops, reduced payloads, and higher operating costs.

From personal experience, cold weather still impacts EV batteries even with various inventions and strategies that companies have come up with. In the cold Pennsylvania winter, charging was much more frequent for me due to range loss due to temperatures.

Tesla’s cubic battery pack flips the script. By arranging the 4680 cells in tall, dense vertical stacks, the pack minimizes external surface area relative to its volume—essentially turning the battery into its own thermal blanket.

Factory video from the Semi assembly line shows these large, yellow-green structural modules mounted directly onto the chassis, forming a near-cube shape.

The reduced exposure helps the pack retain heat generated during operation, keeping cells closer to their optimal temperature even after hours in sub-zero conditions.

The design doesn’t stop there. Tesla pairs the cubic pack with an advanced heat pump system that actively recycles thermal energy from the motors, brakes, and even ambient air.

Tesla reveals various improvements to the Semi in new piece with Jay Leno

Unlike passive systems in earlier EVs, this architecture transfers waste heat back into the battery, maintaining readiness for morning departures without draining the pack.

Executives have noted that the combination, cubic geometry plus intelligent thermal management, dramatically cuts overnight cooldown and range degradation, making the Semi viable for 24/7 fleet operations in harsh winters.

Beyond cold-weather performance, the redesigned pack integrates structurally with the truck’s frame, enhancing rigidity while simplifying assembly. Production footage shows workers installing the massive modules early in the line, signaling that the Semi’s battery is now a core chassis component rather than an add-on.

Using proven 4680 cells keeps costs down and leverages Tesla’s scaled manufacturing know-how from Cybertruck and Model Y lines.

Tesla’s focus on ramping up Semi output will lean on small innovative steps like this one. Truckers are not immune to traveling in cold weather conditions, and changes like this one will help make them more effective while also increasing output by logistics operators who choose to go all-electric with the Tesla Semi.

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SpaceX is keeping the Space Station alive again this weekend

SpaceX’s Falcon 9 launches Northrop Grumman’s Cygnus NG-24 to the ISS with 11,000 pounds of cargo Saturday.

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SpaceX is targeting April 11 for the launch of Northrop Grumman’s Cygnus XL cargo spacecraft to the International Space Station, carrying over 11,000 pounds of supplies, science hardware, and equipment for the Expedition 73 crew aboard. Liftoff is set for 7:41 a.m. ET from Space Launch Complex 40 at Cape Canaveral Space Force Station, with a backup window available April 12 at 7:18 a.m. ET.

The mission, officially designated NG-24 under NASA’s Commercial Resupply Services program, names its spacecraft the S.S. Steven R. Nagel in honor of the NASA astronaut who flew four Space Shuttle missions and logged over 723 hours in space before his death in 2014. Unlike SpaceX’s own Dragon capsule, which docks autonomously, Cygnus relies on NASA astronauts to capture it using a robotic arm before it is berthed to the space station’s module for unloading. When the mission wraps up around October, the Cygnus will depart loaded with station trash and burn up on reentry.

Countdown: America is going back to the Moon and SpaceX holds the key to what comes after

This is the second flight of the Cygnus XL configuration, which debuted on NG-23 in September 2025 and offers a roughly 20% increase in cargo capacity over the previous design. Northrop Grumman switched to Falcon 9 launches after its own Antares 230+ rocket was retired in 2023 following supply chain disruptions from the war in Ukraine.

The upcoming cargo includes a new module to advance quantum research, and an investigation studying blood stem cell production in microgravity with potential therapeutic applications on Earth.

The NG-24 mission is one piece of a much larger picture for SpaceX and the U.S. government. As Teslarati reported, SpaceX has become an indispensable launch provider for U.S. national security missions, picking up a $178.5 million Space Force contract in April 2026 to launch missile tracking satellites, while also holding roughly $4 billion in NASA contracts tied to the Artemis lunar program.

At a time when no other American rocket can match the Falcon 9’s combination of reliability, cost, and launch cadence, Saturday’s mission is a straightforward reminder of how much the U.S. government now depends on a single commercial provider to keep its astronauts supplied and its satellites flying.

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