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Volvo faces legal pushback in California on possible pivot to Tesla-style direct sales model
On Tuesday, the California New Car Dealers Association (CNCDA) filed a petition against Volvo USA with California’s New Motor Vehicle Board claiming the legacy car maker violates state franchise laws banning manufacturer competition with dealerships. The group claimed the “Care by Volvo” (CbV) subscription service launched in early 2018 which provides all-in-one packages of 24-month leases, premium insurance, concierge service, and most vehicle maintenance, was using Volvo dealers as de facto “agents” in an effective practice of dealing directly to consumers. The move is reminiscent of Tesla’s struggles, itself being the subject of dealer franchise-focused legal actions. However, the legal questions aside, the sum of CNCDA’s complaints additionally indicate its objection to Volvo’s possible ongoing shift to a Tesla-style overall direct-sales model.
In Volvo’s CbV subscription plan, buyers select from two currently offered models – the S60 and XC40, including customizations – via an app or a corporate-run website. Once the car selection is final, an agent from Volvo’s financial services company (the “Volvo Concierge”) contacts the buyer and finalizes the package particulars, after which delivery is scheduled at a local participating dealership. During the online process, the customer is given a guaranteed monthly subscription price with the option to upgrade after 12 months and chooses the dealership that will complete the sale. Volvo provides the financing directly through a separate financing branch, and the insurance is provided by Liberty Mutual. The dealer handles the final sales contract, payment, and vehicle hand-off.
While the dealerships participate in the CbV program voluntarily and receive an 8% sales commission, CNCDA claims the process significantly limits the dealer’s ability to build a (profitable) relationship with the customer and eliminates dealer earnings potentials stemming from financing services and other package “add-ons” during the sales process. On its face, this might seem like a reasonable argument, but Volvo’s perspective seems to be addressing customer preferences, a new era of sales strategies, and an effort to reach a new customer market. In an aim to make the brand more appealing to a younger generation accustomed to app-based ride-hailing and a la carte video entertainment services, Volvo may be hoping CbV will help them make inroads towards Millennials in particular.
In an interview with Global Fleet, Alan Visser, CEO of Volvo’s Chinese sister brand, Lynk & Co., detailed how the Millennial connection is explicitly part of that company’s subscription-only business model: “On the other [hand], there is [the] smartphone aspect…Millennials want maximum flexibility and all-inclusive pricing rather than long-term commitments and hassle. Our subscription model is more than just a private lease. It includes services like pick-up and delivery, cleaning, and lots of other things I cannot disclose just yet,” he stated. Also, Lynk & Co intends to only sell hybrids and/or battery electrics, adding yet another Volvo parallel to Tesla. That, and its plan for showcasing its vehicles prior to customer purchase: “In large urban areas we will have so-called offline stores: small, sociable brand boutiques,” Visser additionally explained in the interview.
In their petition, the California dealer’s group made the connection between Lynk & Co and Volvo USA a key part of their case for Volvo’s competition law violation. According to Jalopnik’s review of a pre-production model of Lynk’s first vehicle, the direct-sales subscription is possibly being tested in the US via the Care by Volvo program. “They’re very eager to try out this subscription model of car ownership, or subscribership…They’re sort of testing the waters with the Care by Volvo program, which is proving to be a good plan,” Torchinsky writes, summarizing his talks with the company’s representatives. This article was referenced in CNCDA’s petition against Volvo’s CbV program. Torchinsky goes on to further describe how the dealership experience “sucks” enough for consumers to have opened up a new market for doing car sales business which Lynk has intentionally capitalized on.
Protecting dealers doesn’t appear to be the main priority of CNCDA. In their petition, the New Car Dealers Association seems to be taking the biggest issue with Volvo’s possible negative position on the franchise model entirely, using the legal system as a toolkit to keep customers stuck in an aging infrastructure rather than innovating with the times and finding less restrictive ways to make everyone happy. “‘Subscription programs’ like CbV have been described as a way for the manufacturer to cut out the dealer and ultimately eliminate the franchise model,” the group stated in the introduction of their petition to the New Motor Vehicle Board. Where franchise laws were set up to protect dealers from forced manufacturer bidding, the association seems to be attempting to morph manufacturers wanting to do their own customers’ bidding into an attack on dealer rights. Tesla has certainly encountered this type of morphing even without the challenge of having private dealerships.
In December of last year, a Connecticut state court judge concluded that Tesla’s Greenwich Ave. gallery was operating like a dealership and required a license to do so, something the electric vehicle company is not eligible for because it doesn’t have franchises. The Connecticut Automotive Retailers Trade Association (CARA) was the party responsible for initiating the proceedings which led to the judgment, an organization often at the front lines of defending the state’s franchise laws from would-be offenders. CARA holds the position that vehicle sales should only be conducted through licensed independent dealerships, leaving direct-sales manufacturers like Tesla with limited options for providing its products to customers wanting to buy them.
The car subscription model isn’t unique to Volvo. Luxury car manufacturers especially seem to have also discovered the new market potential of app-driven car flexibility: Access by BMW has price tiers in the $2000-$3700 range for their packages (which include unlimited vehicle swapping), but it’s only available in Nashville, Tennessee for now. The UK-only Carpe by Jaguar Land Rover has $1200-$2900 packages with similar features as CbV, the Mercedez-Benz Collection is similar in price to Carpe, and a few others in that range are being developed and expanded by their respective manufacturers. Several third-party subscription services have also popped up with more flexible lease terms and more economical pricing. Clearly, the trend is showing data points that are worth investment attention.
With all the controversy, it might not even be dealerships that stand to lose the most with subscription models. The case has been made for classifying them as rental cars, which would be another market that might take issue with manufacturers latest ideas for doing business. Some of the services, like Flexdrive, are practically set up to be permanent rental solutions. As with all things, though, only time will tell.
2019-1-15 CNCDA Petition Re… by on Scribd
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Tesla Cybercab gets crazy change as mass production begins
Tesla has officially kicked off mass production of its groundbreaking Cybercab robotaxi at Giga Texas, and the first units rolling off the line feature a striking transformation that’s turning heads across the EV community.
Tesla Cybercab has evidently received a pretty crazy change from an aesthetic standpoint, as the company has made the decision to offer an additional finish on the vehicle as mass production is starting.
Tesla has officially kicked off mass production of its groundbreaking Cybercab robotaxi at Giga Texas, and the first units rolling off the line feature a striking transformation that’s turning heads across the EV community.
VIN Zero—the very first production Cybercab—showcases a vibrant champagne gold exterior with a high-gloss finish, a dramatic departure from the flat, matte-wrapped prototypes that debuted at the 2024 “We, Robot” event.
Presenting VIN Zero — the very first production Cybercab built at Giga Texas. pic.twitter.com/8bXo4CJAlr
— TechOperator (@TechOperator) April 23, 2026
This glossy sheen is a pretty big pivot from what was initially shown by Tesla. The company has maintained a pretty flat tone in terms of anything related to custom colors or finishes.
A specialized clear coat or process delivers the deep, reflective gloss without conventional painting. The result is a premium, mirror-like shine, and it looks pretty good, and gives the compact two-seater a more luxurious and futuristic presence than the subdued matte prototypes.
Photos shared by Tesla community members reveal VIN Zero in a showroom-like setting at Giga Texas, highlighting refined panel gaps, large aero wheel covers, and the signature no-steering-wheel, no-pedals interior optimized for full autonomy.
The open frunk in some images offers a glimpse of practical storage, while the overall build quality appears more polished than that of test mules.
This glossy evolution aligns with Tesla’s broader production ramp. After the first unit in February 2026, the company has shifted to volume manufacturing, with dozens of units already spotted in outbound lots. CEO Elon Musk and the team aim for hundreds per week, paving the way for unsupervised FSD robotaxi networks that could slash ride costs to pennies per mile.
The Cybercab holds Tesla’s grand ambitions of operating a full-service ride-hailing service without any drivers in its grasp. Tesla has yet to solve autonomy, but is well on its way, and although its timelines are usually a bit off, improvements often come through the Over-the-Air updates to the Full Self-Driving suite.
Tesla has confirmed today that its steering wheel-less and pedal-less Cybercab, the vehicle geared toward launching the company’s autonomous ride-hailing hopes, has officially entered production at its Giga Texas production facility outside of Austin.
The Cybercab is a sleek two-door, two-passenger coupe engineered from the ground up as an electric self-driving vehicle. It features no steering wheel or pedals, relying instead on Tesla’s advanced vision-only Full Self-Driving system powered by multiple cameras and artificial intelligence.
Purpose-built for autonomy
Cybercab in production now at Giga Texas pic.twitter.com/Y9qG3KyWBa
— Tesla (@Tesla) April 23, 2026
The minimalist cabin centers on a large display screen that serves as the primary interface for passengers, creating an open, futuristic space optimized for comfort during unsupervised rides. A compact 35-kilowatt-hour battery pack delivers exceptional efficiency at 5.5 miles per kilowatt-hour, providing an estimated 200-mile range.
Additional innovations include inductive charging compatibility and a lightweight design that enhances aerodynamics and performance.
Production at Giga Texas builds on earlier prototypes and initial units completed earlier in 2026. The facility, already a hub for Model Y and Cybertruck assembly, now ramps up dedicated lines for the Cybercab.
This shift to volume manufacturing reflects Tesla’s strategy to scale affordable autonomous vehicles rapidly.
By focusing on a dedicated platform rather than adapting existing models, the company aims to keep costs low while prioritizing safety and reliability through continuous AI improvements.
The Cybercab’s debut in production carries broad implications for urban mobility. As the cornerstone of Tesla’s Robotaxi network, it promises on-demand, driverless rides that could slash transportation expenses, reduce traffic accidents caused by human error, and lower emissions through its all-electric powertrain.
Accessibility features, such as space for service animals or assistive devices, further broaden its appeal. Regulators and cities worldwide will soon evaluate its deployment, but the vehicle’s design already addresses key hurdles in scaling unsupervised autonomy.
Challenges persist, including full regulatory clearance and building charging infrastructure. Yet this production launch signals momentum. With Cybercabs poised to roll out in increasing numbers, Tesla edges closer to a future where personal ownership meets shared fleets of intelligent vehicles.
The start of Cybercab production is more than just a new vehicle entering mass manufacturing for Tesla, as it’s a signal autonomy is near. Being developed without manual controls is such a massive sign by Tesla that it trusts its progress on Full Self-Driving.
While the development of that suite continues, Tesla is making a clear cut statement that it is prepared to get its fully autonomous vehicle out in public roads as it prepares to revolutionize passenger travel once and for all.
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Tesla Summon got insanely good in FSD v14.3.2 — Navigation? Not so much
There were two new lines of improvements in the release notes: one addressing Actually Smart Summon (ASS), and another that now allows drivers to choose a reason for an intervention via a small menu during disengagement.
Tesla Full Self-Driving v14.3.2 began rolling out to some owners earlier this week, and there are some notable improvements that came with this update.
There were two new lines of improvements in the release notes: one addressing Actually Smart Summon (ASS), and another that now allows drivers to choose a reason for an intervention via a small menu during disengagement.
Overall operation saw a handful of slight improvements, especially with parking performance, which has been the most notable difference with the arrival of FSD v14.3. However, there are still some very notable shortcomings, most notably with region-specific signage and navigation.
Tesla Assisted Smart Summon (ASS) improvements
There are noticeable improvements to ASS operation, which has definitely been inconsistent in terms of performance. Tesla wrote in the release notes for v14.3.2:
“Unified the model between Actually Smart Summon, FSD, and Robotaxi for more capable and reliable behavior.”
As recently as this month, I used Summon with no success. It had pulled around the parking lot I was in incorrectly, leaving the range at which Summon can be operated and losing a signal while moving in the middle of the lot.
This caused me to sprint across the lot to retrieve the vehicle:
It was pouring when I left the gym so I tried to Summon my Model Y
It turned the opposite way and drove out of range, stopping here and forcing me to walk even further across the lot in the rain for it 🤣
One day pic.twitter.com/iD10c8sriB
— TESLARATI (@Teslarati) April 5, 2026
Unfortunately, Summon was not dependable or accurate enough to use regularly. It appears Tesla might have bridged the gap needed to make it an effective feature, as two tests in parking lots proved that Summon was more responsive and faster to navigate to the location chosen.
It also did so without hesitation, confidently, and at a comfortable speed. I was able to test it twice at different distances:
🚨 Tesla FSD v14.3.2 ASS testing part 1
This was a significant improvement than recent tries using ASS. The parking lot was pretty empty but getting it to come to my location in one singular motion and maneuver was encouraging. https://t.co/vF7TS48GGV pic.twitter.com/sYt8tyHgNn
— TESLARATI (@Teslarati) April 23, 2026
Tesla Full Self-Driving v14.3.2 ASS testing part 2 https://t.co/lxfWfnLUxf pic.twitter.com/2R0r3ohI3M
— TESLARATI (@Teslarati) April 23, 2026
I plan to test this more thoroughly and regularly through the next few weeks, and I avoided using it in a congested parking lot initially because I have not had overwhelming success with Summon in the past. I wanted to set a low baseline for it to see if it could simply pull up to the place I pinned in the Tesla app.
It was two for two, which is a big improvement because I don’t think I ever had successful Summon attempts back-to-back. It just seems more confident than ever before.
New Disengagement Categories
This is a really good idea from Tesla, but there are some issues with it. The categories you can select are Critical, Comfort, Preference, and Other.
I think the reasons why people choose to take over would be a better way to prompt drivers, like, “Traveling Too Fast,” “Incorrect Maneuver,” “Navigation Error,” would be more beneficial.
I say this because it seems that how we each categorize things might be different. For example, I shared a video of an intervention because the car had navigated to an exit to a parking lot and put its left blinker on, despite left turns not being allowed there.
I disengaged and chose Critical as the reason; it’s not a comfort issue, it’s not a preference, it’s quite literally an illegal turn, and it’s also dangerous because it cuts across several lanes of traffic and is 180 degrees.
I chose to label this Navigation error as “Critical” while testing FSD v14.3.2
Here’s why:
✅ This intervention wasn’t “preference,” as the maneuver FSD routed was illegal
✅ If a police officer saw this maneuver, it would result in a ticket https://t.co/znhHb4haAo pic.twitter.com/bZOiLwWmQa— TESLARATI (@Teslarati) April 23, 2026
Some said I should not have labeled this as Critical, but that’s the description I best characterized the disengagement as.
Categorizing interventions is a good thing, but it’s kind of hard to determine how to label them correctly.
Inconsistency with Regional Traffic Patterns
Tesla Full Self-Driving is pretty inconsistent with how it handles regional or local traffic patterns and road rules. The most frequent example I like to use is that of the “Except Right Turn” stop sign, which has become a notorious sighting on our social media platforms.
In the initial rollout of v14.3, my Model Y successfully navigated through one of these stop signs with no issues. However, testing at two of these stop signs yesterday proved it is still not sure how to read signs and navigate through them properly.
🚨 Tesla FSD v14.3.2 attempts the “Except Right Turn” stop sign: https://t.co/W5MjAybaNK pic.twitter.com/P6oeUsk4PN
— TESLARATI (@Teslarati) April 23, 2026
Off camera, I approached another one of these signs and felt the car coming to a stop, so I nudged it forward with the accelerator pedal pressed.
This helped the car go through the sign without stopping, but I could feel the bucking of the vehicle as the car really wanted to stop.
Musk said on the earnings call earlier this week that unsupervised FSD would probably be available in some regions before others, including a state-to-state basis in the U.S.
“It’s difficult to release this like to everyone everywhere all at once because we do want to make sure that they’re not unique situations in a city that particularly complex intersection or — actually, they tend to be places where people get into accidents a lot because they’re just — perhaps there’s — and like I said, an unsafe intersection or bad road markings or a lot of weather challenges. So I think we would release unsupervised gradually to the customer fleet as we feel like a particular geography is confirmed to be safe.”
This could be one of those examples that Tesla just has to figure out.
Highway Operation
Full Self-Driving is already pretty good at routine roadway navigation, so I don’t have too much to report here.
However, I was happy with FSD’s decision-making at several points, including its choice not to pass a slightly slower car and remain in the right lane as we approached the off-ramp:
🚨 Tesla FSD v14.3.2 highway operation: generally happy with the performance here, especially behavior near the exit
Love that the car got over in the right lane after its final pass, and stayed there as the off ramp was approaching https://t.co/qVRVhg6XGR pic.twitter.com/1ELwHf2XKS
— TESLARATI (@Teslarati) April 23, 2026
Better Maneuvering at Stop Signs
Many FSD users report some strange operations at stop signs, especially four-way intersections where there is a stop sign and a line on the road, and they’re not even with one another.
I experienced this quite frequently and found that FSD would actually double stop: once at the stop sign and again at the line.
This created some interesting scenarios for me and I had many cars honk at me when the second stop would happen. Other vehicles that had waved me on to proceed through the intersection would become frustrated at the second stop.
FSD seems to have worked through this particular maneuver:
🚨 Tesla FSD v14.3.2 with a singular stop at the correct spot
No double stopping anymore in my experience https://t.co/Wd0TaNjc1R pic.twitter.com/CdQPvJHaAM
— TESLARATI (@Teslarati) April 23, 2026
FSD should know to go to the more appropriate location (whichever provides better visibility), and proceed when it is the car’s turn to move. The double stop really ruined the flow of traffic at times and generally caused some frustration from other drivers.
Tesla Cybercab gets crazy change as mass production begins
Tesla confirms Cybercab with no steering wheel enters production
