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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
Investor's Corner
Tesla unfolded its first European “folding Supercharger”
Tesla’s folding Supercharger just arrived in Europe and it changes how fast charging expands.
Tesla’s Folding Unit Supercharger has officially landed in Europe, with the company teasing a new installation in its effort for a broader rollout targeting major motorway rest stops across the European continent in Q3 2026. The arrival marks a notable shift in how Tesla is thinking about network expansion, moving from hardware performance alone to engineering the logistics chain itself.
While Tesla did not reveal the exact location for the new folding Supercharger in Europe, the photo shared on X heavily suggests that this maybe somewhere in Norway. Historically, whenever Tesla rolls out an entirely new infrastructure architecture in Europe, whether it was the original Supercharger stalls years ago or these brand-new modular V4 “Folding Units”, Norway is almost always the designated launch pad because of its unmatched EV adoption rate and supportive infrastructure
The Folding Unit, introduced in March 2026, is a factory pre-assembled V4 charging station built on an industrial hinge system mounted to a heavy-duty concrete base. The entire assembly arrives on site ready to unfold and connect. Tesla confirmed the units feature telescopic light poles specifically designed for easy transportation and fast on-site deployment, a detail that signals how carefully the logistics chain has been engineered alongside the hardware itself. The design allows 33% more stalls per delivery truck, cuts installation time roughly in half, and reduces overall deployment costs by more than 20% compared to traditional installations.
Tesla’s newest “Folding V4 Superchargers” are key to its most aggressive expansion yet
Tesla also noted telescopic light poles which provide benefits over traditional Supercharger installations that require fixed-height poles that are awkward to ship, slow to position on site, and often require separate crews and equipment to erect before charging hardware can even be staged. By engineering poles that compress for transit and extend on arrival, Tesla has removed one of the quieter bottlenecks in the physical deployment process. Every hour saved on a light pole installation is an hour redirected toward getting stalls energized. At scale, across dozens of new sites per quarter, those hours add up to a meaningful acceleration in how quickly a location goes from approved permit to serving its first customer.
Each Folding Unit pairs a single V4 power cabinet with eight charging posts. The V4 cabinet delivers up to 500 kW per stall for passenger vehicles and up to 1.2 MW for the Tesla Semi, supporting twice the stalls per cabinet at three times the power density of its predecessor. Longer cables make every new station immediately usable by non-Tesla vehicles, a priority as Tesla continues opening its network to Ford, GM, Rivian, Hyundai, Stellantis, and others.
As Teslarati reported when the Folding Unit was first unveiled, Tesla’s Gigafactory New York produced its final V3 Supercharger cabinet in March 2026 after more than seven years and 15,000 units, completing a full pivot to V4 production. The European arrival of the folding design is the next chapter in that transition.
Faster and cheaper deployment means Tesla can justify building in markets and corridors that were previously too expensive to serve, filling the coverage gaps that have slowed EV adoption outside major urban centers.
First Folding Unit Superchargers in Europe 🇪🇺 https://t.co/KNfYWJukkL pic.twitter.com/YR1udIpH1i
— Tesla Charging (@TeslaCharging) June 10, 2026
Tesla has stunned by gaining yet another approval for its Full Self-Driving suite in Europe, its second in two days and its fifth overall.
Belgium will be the latest country to allow Tesla owners to utilize FSD on public roads in Europe, joining a quickly growing list that started with the Netherlands, Lithuania, and Estonia.
On Tuesday, Denmark announced its approval of the FSD suite, which has now been followed by Belgium just one day later.
The country’s Minister of Mobility, Annick De Ridder, announced the approval on her X account, stating that she had just signed the approval of Tesla FSD. It now goes to the country’s homologation department for the last step of the approval process.
De @Tesla community houdt hier al geruime tijd de vinger aan de pols over de toelating voor de FSD-technologie op onze Vlaamse en Belgische wegen.
Uit waardering voor jullie niet-aflatende interesse (en aanmoediging 😉), krijgen jullie hierbij de primeur: ik heb net de toelating… pic.twitter.com/Yrps4OHTj8— Annick De Ridder (@AnnickDeRidder) June 10, 2026
The Belgian approval is one of mighty importance because it truly shows how quickly countries in Europe could greenlight the FSD suite consecutively. Approvals are already coming in relatively quickly, which is a great sign.
Perhaps the next big development that could come from FSD approvals in Europe is an approval from a country like England, Italy, France, Spain, or Germany. It would be something to see how FSD would perform in a major European metro, such as London, Barcelona, Madrid, Paris, Rome, or Berlin.
Getting Full Self-Driving in Spain and England will be such huge milestones for Tesla. I am so excited to see how FSD performs in Madrid, Barcelona, and London, specifically.
The ultimate test will always be Mumbai or New Delhi. Excited for India’s eventual approval! https://t.co/paw9Ch1qmL pic.twitter.com/9RdDERVSSJ
— TESLARATI (@Teslarati) June 9, 2026
Full Self-Driving does an excellent job of roaming around major U.S. cities like New York and Los Angeles, but other high-profile international cities of significance would truly mark a line in the sand for Tesla, which can simply enable any vehicle in its customer-owned fleet to run FSD with the correct approvals.
SpaceX CEO Elon Musk recently confronted worries about orbital data centers and launching satellites in mass quantities in space, as some voiced concerns about crowding.
Musk’s SpaceX plans to combat the issue of needing data centers by launching them into space instead of taking up valuable real estate on Earth. It has been a major point of SpaceX’s future, including its looming IPO, which could be the largest ever.
In a recent interview filmed at SpaceX’s Starlink terminal factory in Bastrop, Texas, Elon Musk directly addressed concerns that deploying large numbers of AI satellites for orbital data centers could crowd Earth’s orbit. His message was straightforward and reassuring: space is vast beyond human intuition.
“Space is really big,” Musk said. “It’s not like space is gonna get crowded. Space is enormous. If you actually look at it relative to the Earth, the satellites are so tiny you can’t even see them.” He emphasized that even zooming in makes a satellite appear large, but from a planetary perspective, they are minuscule specks.
Elon on concerns that AI satellites will crowd space:
“Space is really big. It’s not like space is gonna get crowded. Space is enormous. If you actually look at it relative to the earth, the satellites are so tiny you can’t even see them.” https://t.co/Mvr7NpL25Q pic.twitter.com/5Fi629Rii7
— Sawyer Merritt (@SawyerMerritt) June 8, 2026
Musk pointed to SpaceX’s real-world experience operating roughly 10,000 Starlink satellites as evidence that large constellations can be managed safely. “We’ve got a pretty good idea of how to operate just really large constellations and do it safely,” he noted. SpaceX remains the only operator with meaningful experience at this scale, giving the company unique insight into tight orbital packing without compromising safety
The discussion highlighted SpaceX’s plans for “AI1” satellites—essentially orbiting racks of AI compute powered by massive solar arrays and cooled via radiative panels in space’s vacuum.
These satellites leverage proven Starlink V3 technology, making them simpler to design than communications satellites. A first-generation unit targets around 150 kW peak power, with a 70-meter wingspan for solar panels and radiators. Laser links will connect them to each other and the Starlink network, delivering low-latency access (on the order of a few milliseconds from low-Earth orbit).
FCC accepts SpaceX filing for 1 million orbital data center plan
Musk framed orbital data centers as a practical solution to Earth’s constraints on AI growth. Ground-based facilities face power shortages, water demands for cooling, and grid limitations. In space, constant sunlight (no day-night cycle), vacuum radiative cooling, and abundant solar energy offer clear advantages.
Production will ramp up at an expanded “Gigasat” factory in Bastrop, with solar manufacturing already underway and full AI satellite output expected at reasonable volume by the end of 2027. Starship’s rapid, high-volume launch capability, aiming for multiple flights per hour, will make massive deployment feasible.
Critics sometimes raise risks like space debris or Kessler syndrome, but Musk’s response underscores scale: even a million satellites would represent an imperceptible fraction of available orbital volume when viewed against Earth’s size. SpaceX’s automated collision avoidance and deorbiting designs for Starlink further mitigate concerns.
This vision ties into broader ambitions. Musk sees orbital AI compute as a step toward harnessing more of the Sun’s energy, advancing humanity on the Kardashev scale from a Type 0 civilization toward Type 1 and eventually Type 2. By moving power-hungry data centers off-planet, SpaceX aims to unlock orders-of-magnitude more compute while preserving Earth’s resources.
Musk’s comments should ease public anxiety. With proven operational expertise, incremental engineering, and the immensity of space itself, orbital data centers represent not overcrowding, but smart expansion into the final frontier.
Tesla unfolded its first European “folding Supercharger”
Tesla stuns with another FSD approval in Europe, its second in two days
