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    Musk Says Tesla Model 3 Owners Will Have To Pay To Use Supercharger Stations


    • Model 3 Owners who were hoping to have free access to the various Supercharger stations will be disappointed with this news

    One of the key benefits of owning a Telsa is having access to the various Supercharger stations around U.S. for free. But if you're one of the 300,000-plus buyers for the Model 3, you'll have to pay to have your vehicle charged at the station.

     

    “Free Supercharging fundamentally has a cost,” said Telsa CEO Elon Musk at the company's annual shareholders meeting yesterday.

     

    "The obvious thing to do is decouple that from the cost of the Model 3. So it will still be very cheap, and far cheaper than gasoline, to drive long-distance with the Model 3, but it will not be free long distance for life unless you purchase that package.”

     

    That package in question would give Model 3 owners the previlage of charging for free at Supercharger stations like owners of the Model S and X. Bloomberg says Musk didn't provide any more details of this package.

     

    A key benefit of the Supercharger station is how fast it can charge up a Tesla vehicle. Within 30 minutes, the station will charge the battery back up to provide a range of 170 miles.

     

    Source: Bloomberg

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    I think we all fully expected this. Let's see how the pre-orders go now. 

     

    But here's the deal. Electricity ain't free. So this is a sound business decision. But will people be taken aback? Certainly. But then you look at where the automaker is, it simply cannot afford any mistakes or unnecessary costs. at this time.

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    I think he had to move to this cost model eventually.  I bet eventually even the Model S and X will start to have to charge for it too.

     

    The problem is one of assholes... people who park their Tesla at a supercharger station all day and clog up the system. 

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    Yeah, and GM will suddenly start expanding the the electric infrastructure which Mary Barra went on record to say GM isn't interested in supporting fast charging for its cars at this time.

     

    Yep, that's the rule of every industry. Look at personal finance/credit - people with modest means have many times been forced to use payday loans with tremendous EAR's. Poor people get shafted everywhere. Cheap GM cars once were cost cutted in such a simple place - we all know where. Ford with the Pinto did a cost/benefit analysis by placing a value on the lives of people (the cost of settling litigation versus the cost of re-engineering the placement of the fuel tank. Toyota in a treacherous bout of Japanese greed started to fall in love with its products that had poor quality.  

     

    It's the same as luxury buyers getting free car detailing and other perks of paying high premiums.

     

    Or are you going to say that suddenly GM has the means to pay for Bolt owner's charging in their own specific charging stations?

     

    Most likely this way...Tesla can get some or all of the cost recovery of the supercharger network and expand it even more rapidly.

     

    See that's the thing... I was talking about this even before this announcement was made. Electric cars will have to become viable, and that means doing things right - which aren't always favored by all.

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    No Big Deal as electricity is cheap here, so I am more than happy to charge my bolt at home or at the thousands of 240v and DC fast charge stations around washington state. :)

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    Horrible optics all the same. The high-rollers roll for free while the plebes pay to play?

     

    The high rollers probably spent enough to buy two Model-3s... so why wouldn't it come with?

    Equus buyers get a "free" iPad. while genesis 3.8 sedan buyers get nothing.

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    And honestly, if I were buying a Model-3, I'm probably not going to worry about unfettered access to the Supercharger network.  Most of the time, I'll be driving within range of my house anyway, so I would just fill up at home.  The few times a year I need to take it on a long trip, I would pay the fee to use the Supercharger.... no biggie.   It's still cheaper than gas in the long run, and in that scenario, probably cheaper than paying the unlimited use supercharger fee. 

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    Horrible optics all the same. The high-rollers roll for free while the plebes pay to play?

    This is not a new concept, especially in the automotive world, and is not that big of a deal.

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    Suddenly Tesla making a very good choice, something that will keep them going is to be frowned upon, because it changes the vision, and it proves that they have to be humble to themselves and be honest to their future, more mainstream customers.

     

    Well we all want the world to improve, but many of us don't want it to change.

     

    It's unbearably naive to think this is yet another occasion of the rich preying on the masses. Their purchases of the Roadster and S, and X are what got this automaker here. The willing shareholders eventually want profits, and the company has to grow up, but not compromise itself. And I don't expect the free superchargers to last for anyone. Part of the problem is that again, what was meant for occasional use suffered the tragedies of the commons. Free-for-all means a destruction of a resource for all to enjoy in the sparing moments. Sure, you had to pay to play, when have we not? 

     

    We all cry about the price of gas, yet suck it up and pump it, shove it into our vehicles

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    first step to adding taxes to vehicle charging to make up what is lost in gas tax, and to be honest, that is fair, as long as the amount is fair.  People need to realize once electrics take off, the taxation shift will probably follow.  Again, fair in concept, if you want the roads still.  Tesla doing this would be a great way to test the acceptance of that tax replacement.

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    i think they could charge for Supercharger use on every car, and probably eventually they will.  Gas stations aren't giving away unlimited free gas, if it costs $5 at the Supercharger station to fill up no big deal.  And you can charge at home.

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    hyperv6

    Posted (edited) · Report

    Yes the frosting is off the cake. I should make up Tesla Shirts that say A$$, Grass or Electric no one rides free. 

     

    The free is going to go away as Tesla has to start making money and these add on items are where it is at. 

     

    The S model people paid for the Superchargers in the price of the car and just never knew it. Nothing in life is free and if it is then odds are no one wants it like Pickeled Herring. 

     

    Tesla is in a bind. They have put out billions and not yet really seen much return on the investment and even the 3 is not going to be the cheap car that it was made out to be. Yes it will be cheaper than a S but not Cheap as in Bolt Cheap with all the options. People tend to not understand the Bolt comes with most everything while the Elon basement price is going to be bare bones. Even he said $35K is not going to be the price by the time it arrives. 

    He went on a media blitz again this week promising people to Mars by 2025 and that the three styling would be done in 3 weeks? Generally even GM has the Show car done before they show it.  I figure he will proclaim himself Tony Stark next. 

     

    For growth now Tesla is going to be like a car trying to go faster. The First 100 MPH is easy but the next comes at x to the third power and the next 100 MPH is x to the sixth power. Unlike his rivals he has nothing else paying the bills but brain washed investors and risk taking speculators that will grow tires at some point if they do not see a return. If they do not get this return they will bail fast to make their own return. 

     

    Look for free superchargers to go away and free over the air updates to vanish. I expect they will sell packages with the cars to where you can get them for free if you pay up front. Tesla may be different in some ways but Options are still the place all makers including Tesla make money. 

     

    The key to the Superchargers is they are more plentiful than any other charging system. If you plan to travel away from home they are one way to get there. Other wise between the oceans there are few other options and will be few moving forward for a good while as so little investment is going on in charging stations in most areas. In Ohio there are very few options and we are one of the most auto populated areas in the country. There are just not enough cars to make it a good investment yet as you will have to ride out the time till they become more common. Also you have to pray that there would be no other breakthroughs that may move the auto in another direction. 

     

    Better investment in the cars is only half the battle the other in going to be the infrastructure. Musk was doing well to start this but it has slowed as his money was going else where in Tesla. If you are on the west coast you are golden in most areas but else where no so much. Local use is fine but trips are out for many especially in many areas where there is no plug in's. 

     

    I think this will help with GM and the Bolt as it is mostly considered a commuter car. Also I am sure they will offer charging at all their dealers like they have with the Volt. Not a pure solution but a good use of too many dealers. 

    Edited by hyperv6
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    In the history of oil and gasoline...

     

    When was it ever "free" for ANYBODY, ANYWHERE on the PLANET to fill up for home heating or as automobile fuel?

     

    A dozen or so of car dealerships in the Montreal area spanning different manufactures from  GM to Mercedes Benz(yes even Mercedes) all have had special offers in offering free gas for a year on a purchase of a new car the last couple years, but other than that....when was oil and gasoline offered for free for a good amount of time from a manufacturer or home builder ever?

     

    We could say that Tesla Model S owners actually did pay for that in the price of the car....because nothing in life is free.

     

    NO SHYTE!!!!!

     

    "Nothing in life is free" is such a general statement it aint even funny!!!!

    Even in death....I should know....I just finished with all that red tape in burying my mom...and although I knew about it before....a just got reacquainted with the fact that death is big business....oh....and I still have to file her taxes next year too for the 2 months she was alive in 2016....so as we were saying...

     

    Nothing in life is free....

     

    Tesla still has the electricity  bills to pay from the electricity service providers that provide the electricity...because we sure as hell know the electricity service providers arent giving the electricity they produce for free as that production also costs money...   

    Tesla is bleeding money with the infrastructure they are building and  with the electricity they are providing....either in battery production form  or supercharging form....

     

    So....we whine that Tesla is losing money...

    and we whine beause Tesla is gonna charge for usage....as it should....

     

    Boy...Tesla could never win with you folk....

     

     

    PS: To think that a product or service is actually free....no cost or no charge...is naive...

    Somewhere down the line...somebody is fitting the bill...somehow....

     

    That Model S owners continue recharging without the hassles of pay as you play is PHENOMENAL...

    It will not last...

     

    Another general statement:

     

    NOTHING LASTS FOREVER!!!

     

    To think otherwise...is also naive....

    Edited by oldshurst442
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    Keep in mind also. Electricity has gone up a lot in last 8 years or so. For fueling a car it is still 'cheap' but once electrics take more hold, now the price of your electricity will go up at break neck rates. Over time the goal will be to test consumers limits for how much they can or will pay to fuel their cars. Elec prices will rise so that any price advantage for car fuel vs gas will minimize or go away. And all the extra demand means you'll get stuck paying those astronomical rates to plug in things at home then too.

    It's still cheap now. Enjoy it while

    It lasts. Like anything people 'need' with controlled distribution it will skyrocket and go through the roof since you don't buy free market electricity.

    Edited by regfootball
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    Supercharging was never "free".  It was included with the price of the Model S. Keep in mind that early base model Model-S did not have access to supercharging either, you had to pay a $2,500 upgrade fee to either upgrade your base Model-S or pay for the more expensive trim-line to the tune of $15k or more. 

     

    Most Supercharger stations have solar generation, so the cost of the actual electric commodity is really cheap to Tesla. (They sell electricity the utility when cars aren't charging, they buy electricity from the utility at night).

     

    Even still, at household rates, it costs about a penny a mile to "fill up" a Tesla.  At those rates, would cost Tesla about $2.60 per fill-up if a P90D rolls in with 0 miles left of range. A 60KW car (range = 208 miles) with the $2,500 Supercharger upgrade would cost Tesla about $2.08 to fill from zero.  That means a 60KW Model-S owner would have to visit the supercharger 1,202 times, filling up from zero each and every time, before Tesla was out of the money on the electricity cost.  Mind you, that's at household rates which Tesla probably pays less than.

     

    The big cost to Tesla is in the building of the supercharger stations... but once those are amortized out, the remaining upkeep and electricity costs are minimal. 

     

    Assuming the Model-3  (Why isn't it the Model-4 btw? Don't we count the roadster?) is a 60KW car, they could charge $5 to fill it up at a super charger station and it would be profitable for them.

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    Keep in mind also. Electricity has gone up a lot in last 8 years or so. For fueling a car it is still 'cheap' but once electrics take more hold, now the price of your electricity will go up at break neck rates. Over time the goal will be to test consumers limits for how much they can or will pay to fuel their cars. Elec prices will rise so that any price advantage for car fuel vs gas will minimize or go away. And all the extra demand means you'll get stuck paying those astronomical rates to plug in things at home then too.

    It's still cheap now. Enjoy it while

    It lasts. Like anything people 'need' with controlled distribution it will skyrocket and go through the roof since you don't buy free market electricity.

     

    False - Your local utility may have raised rates on you, but on average, the price of electricity has gone up 5 cents a kWh since 2001. (7c/kWh in 2001, 12c/kWh 2016).  That's a third of a penny per kWh per year over 15 years..... not exactly soaring rates.

     

    Half the states have free(er) market electricity. There are over 250 energy companies operating and competing in Texas.  In just my zip code I have 91 different energy plans available to me through a multitude of different companies.  My current plan is a 100% wind generation supplier who is cheaper than coal.

     

    If you don't have a competitive energy market in your state, write your state representatives. 

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    Washington State only has PSE or Puget Sound Energy for the state supplying electricity and I am fine with that as is the bulk of the state. WHY you ask, because we have some of the cheapest if not cheapest electricity in the nation. All our power is Hydro, Wind and Solar created. 

     

    Total cost ranks us as 50th in the nation as a total cost today in 2016 per kWh is now 8.53 cents.

     

    Comparisons of years past:

     

    2016 - 8.53 cents per kWh

    2014 - 7.15

    2012 - 6.94

    2010 - 6.66

    2008 - 6.55

    2006 - 6.14

    2004 - 5.80

    2002 - 5.88

    2000 - 4.41

    1998 - 4.03

     

    I you want to see your own state historical trend, check here as I found NE keeps it simple and easy to read all the reports comparing every state since 1998.

     

    http://www.neo.ne.gov/statshtml/204_archive.htm 

     

    Yes I choose to jump every 2 years on the rates, but as you can see except in 2002 when it jumped up before falling back and this was to pay for dismantling / retiring the loan nuclear reactor they had here in washington.

     

    Based on 1200 miles a month driving a BOLT, my cost will be $28 dollars a month to fuel the BOLT. This along with a number of other benefits is why my wife told me she wants the BOLT when it comes out this fall.

     

    Even if they double the electric rate, this will still be a huge savings compared to the roughly $400 a month I pay for petrol for my Trailblazer SS that she drives daily.

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    "Doubling of electric rates" sounds like a lot... but it really isn't when you consider that rather minuscule increase is over 15 years.   I'll also note that those rates probably don't include delivery, which is a separate charge.

     

    1000kwH of electricity would cost you $40.30 in generation in 2000 and $85.30 today. It works out to be a yearly increase of $33.75 per year over 16 years.  I just can't get excited about that.   If only everything else increased in price at such a slow pace. 

     

    So add an electric car to the household.. most people report their electric bill increasing by $25 to $35 a month, but their gasoline bills plummet, sometimes to zero. Friends of mine, one of whom is an Editor at Cars.com, are on their second Volt lease. They buy gas every three months and reported an electric bill increase of $30 a month.  They traded in an old Pathfinder that was costing them $400 a month just to fuel.  

     

    It was simple math for them.  Volt Lease + Electricity Bill Increase < Pathfinder Fuel costs.

     

    Even if electricity rates doubled again... not over 15 years, but next year.... you're looking at $60 a month to run an EV.   The math still works. 

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    Is electric a traded and marketed commodity? Yes

    The supply and demand controls the price? Yes 

     

    The more we move to all electric means will drive up demand? Yes

     

    The supply is growing at a slower rate than demand? Yes. 

     

    What happens when demand out strips supply prices go up. 

    Just as the oil markets were created in the 70's and oil became a traded commodity we will see similar actions with electric moving forward. It will matter little where it comes from as market will determine the cost. Electric companies buy and sell electric all the time. 

     

    Just as oil America uses little from the middle east as only a couple east coast states use oil from the opec countries. But price of the market is driven buy all markets and the demands and supplies of oil globally. 

    Electric is this way now but to a smaller degree. You add more and more demand on the market and slow growth of supply the prices will continue to rise no matter if you get it from coal, hydro, nuke, sun or wind. 

     

    Drew they may tell you all of yours is wind driven but it is the same crap in the line everyone else is getting. As you know the line to your house is not directly connected to a wind mill. You may be paying a supplier that makes their power that way but yours may be coming from a coal plant on the Ohio River just as all your neighbors do. 

     

    The free market for energy is a two edged sword. You may get by on cheaper energy but you also run the real risk of suppliers controlling the markets globally and raising rates for everyone. 

    I really expect in the end there is not going to be any cheap energy utopia as there is too much money to be made globally. Also add in the power factor as the countries with power will hold global dominance. The ones to have large cheap supplies will be able to make things cheaper and sell it to those of us who have regulated ourselves out of the market. 

     

    The redistribution of wealth is all very real and green energy is taking down the old players as others like India and China are taking full advantage of now regulating themselves. 

    This is a very big geo political topic that is much more than could be covered here. 

    The long and the short of it. I do not expect ownership of an electric car in the long run to save me much money in the future. Nothing is free or cheap anymore and it will only get worse. We used to have free TV gone, Free Radio now they have ways to charge you for that. Even free air to fill your tires is now more a memory. 

     

    Things will continue to improve our lives but there will always be a larger price tag along with it. 

     

    Hell I just bought a new $3,000 fridge but it is so efficient that the new models will not last 10-15 years anymore. The damn thing will do just about anything you want but again a price to pay is no cheaper in the long run over my nearly 40 year old unit that is still working fine. I plan to keep it as you just can't buy them like that anymore as it works great but just does not match the new kitchen we are putting in. 

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    Electricity in Washington state is heavily regulated and increases are only allowed under mandated voting by a board in our capital. One reason probably that our rates have stayed so low but also we do have an abundance of the 3 natural green energies that helps to keep things low and a statewide attitude of doing everything green.

     

    In washington state you also have to have Garbage, yard/food waste and recycling pickup weekly. As such all of waste management trucks are CNG here.

     

    Just looked at my most current BI-Monthly PUD bill from PSE. I used 1788 KWH at a rate of .09437 per KWH which came out to $168.73 plus the tax of $10.12 for a bill of $178.85 for 2 months or $89.425 per month. So if I get a BOLT and add the $28 per month to my electric bill but stop spending $400 a month on fuel even with the car payment and insurance, I still come out ahead.

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    Yup. With proper incentives to go net energy neutral or positive - you know, you don't need to ever upgrade your equipment for a long time, because vehicles and appliances will only get more efficient w/ energy.

     

    A distributed, renewable energy source is very good long term. Even if it's expensive at first. Solar is getting better every year.

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    Keep in mind also. Electricity has gone up a lot in last 8 years or so. For fueling a car it is still 'cheap' but once electrics take more hold, now the price of your electricity will go up at break neck rates. Over time the goal will be to test consumers limits for how much they can or will pay to fuel their cars. Elec prices will rise so that any price advantage for car fuel vs gas will minimize or go away. And all the extra demand means you'll get stuck paying those astronomical rates to plug in things at home then too.

    It's still cheap now. Enjoy it while

    It lasts. Like anything people 'need' with controlled distribution it will skyrocket and go through the roof since you don't buy free market electricity.

     

    False - Your local utility may have raised rates on you, but on average, the price of electricity has gone up 5 cents a kWh since 2001. (7c/kWh in 2001, 12c/kWh 2016).  That's a third of a penny per kWh per year over 15 years..... not exactly soaring rates.

     

    Half the states have free(er) market electricity. There are over 250 energy companies operating and competing in Texas.  In just my zip code I have 91 different energy plans available to me through a multitude of different companies.  My current plan is a 100% wind generation supplier who is cheaper than coal.

     

    If you don't have a competitive energy market in your state, write your state representatives. 

     

    Minnesota.  so, no, its not been fair.  My utility is a city utility.  I have no idea where they are getting their power from, but i have only one choice from where to get it.  City has a monopoly on me and renewable energy legislation and such drove up electric prices more than the national average.

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    Is electric a traded and marketed commodity? Yes

    The supply and demand controls the price? Yes 

     

    The more we move to all electric means will drive up demand? Yes

     

    The supply is growing at a slower rate than demand? Yes. 

     

    What happens when demand out strips supply prices go up. 

    Just as the oil markets were created in the 70's and oil became a traded commodity we will see similar actions with electric moving forward. It will matter little where it comes from as market will determine the cost. Electric companies buy and sell electric all the time. 

     

    Just as oil America uses little from the middle east as only a couple east coast states use oil from the opec countries. But price of the market is driven buy all markets and the demands and supplies of oil globally. 

    Electric is this way now but to a smaller degree. You add more and more demand on the market and slow growth of supply the prices will continue to rise no matter if you get it from coal, hydro, nuke, sun or wind. 

     

    Drew they may tell you all of yours is wind driven but it is the same crap in the line everyone else is getting. As you know the line to your house is not directly connected to a wind mill. You may be paying a supplier that makes their power that way but yours may be coming from a coal plant on the Ohio River just as all your neighbors do. 

     

    The free market for energy is a two edged sword. You may get by on cheaper energy but you also run the real risk of suppliers controlling the markets globally and raising rates for everyone. 

    I really expect in the end there is not going to be any cheap energy utopia as there is too much money to be made globally. Also add in the power factor as the countries with power will hold global dominance. The ones to have large cheap supplies will be able to make things cheaper and sell it to those of us who have regulated ourselves out of the market. 

     

    The redistribution of wealth is all very real and green energy is taking down the old players as others like India and China are taking full advantage of now regulating themselves. 

    This is a very big geo political topic that is much more than could be covered here. 

    The long and the short of it. I do not expect ownership of an electric car in the long run to save me much money in the future. Nothing is free or cheap anymore and it will only get worse. We used to have free TV gone, Free Radio now they have ways to charge you for that. Even free air to fill your tires is now more a memory. 

     

    Things will continue to improve our lives but there will always be a larger price tag along with it. 

     

    Hell I just bought a new $3,000 fridge but it is so efficient that the new models will not last 10-15 years anymore. The damn thing will do just about anything you want but again a price to pay is no cheaper in the long run over my nearly 40 year old unit that is still working fine. I plan to keep it as you just can't buy them like that anymore as it works great but just does not match the new kitchen we are putting in. 

    I had to LOL.  TV aint free.....we pay for cable.  (and netflix and hulu which we don't use much), radio ain't free.....I have XM in both vehicles.......LOL

     

    I test drove a 2017 Volt today I'll write that up, so its interesting to talk real numbers of cost to run.  

     

    My take is on this the ominous take though.  The current paradigm is that 'the man' gets a certain percent of your net income every month for gasoline.  Every person is different, and gas prices fluctuate, but for the sake of argument lets say a lot of people spend 200 to 400 bucks a month on gas when its like 3 bucks or more a gallon.  Take that one step further and for some people that could be 5-10% of their monthly net income goes for gasoline.

     

    RIGHT NOW, electric may not come close to that, but THE MAN will find a way to cut into your wallet the same percent over time.  Demand for electric will go up, and a combination of real costs needed to pay for increased power generation will be one thing, but pure common greed of charging more for something everyone 'needs' will push that price up more.  It's basically going to come down to pushing the limits of everyones wallet, they will push the price of the power as high as they can because they know people can bear it now.  Somehow over time, TCO will morph out to be the same.  Maybe the vehicle will cost more, maybe the insurance will, maybe the fuel will.  But i tend to agree with hyper, i don't look to much in the way of the savings argument over time.  So enjoy the cheap running costs for maybe what, 10 years or so.  Once we are all latched to the outlet, the savings will become less real. 

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    If govts are rational they will charge a tax based on miles driven. it's really the only other fair alternative to gasoline consumed. As vehicles get away from gas or diesel, then it's really the only fair way.

     

    Charging more for electricity because of cars would be dumb. Because electricity isn't tied to one specific use.

     

    Eventually solar will be a very feasible for many people. It already is for people who can take the immediate hit to the wallet, but are still middle-class with modest lifestyle.

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      “The license was denied because state law explicitly requires a dealer to have a bona fide contract with an auto manufacturer to sell its vehicles. Tesla has told the department it does not have one, and cannot comply with that requirement,” said Michigan Department of State Communications Director Gisgie Dávila Gendreau in an email to The Detroit News at the time.
      The law in question was signed back in 2014 by current Governor Rick Snyder which made it illegal for an auto manufacturer to sell vehicles directly to consumers. The law also prohibits a manufacturer from performing service on their vehicles.
      “For the last two years, Tesla has pursued legislation in Michigan that is fair to everyone and that would benefit Michigan consumers. Giving auto dealers a monopoly on car sales benefits them, but harms consumers,” said a Tesla spokeswoman to Automotive News in a statement.
      The lawsuit names Synder, attorney General Bill Schuette, and Michigan Secretary of State Ruth Johnson as defendants. Tesla has also requested for a jury trial. 
      Tesla is seeking a permanent injunction to prevent officials in the state to enforce the relevant part of the law. This would force the state to give Tesla a dealer license.
      We'll be watching closely to see if Tesla can make any headway.
      Source: Automotive News (Subscription Required), The Detroit News

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    • By William Maley
      It was going to happen sooner or later, but Tesla is taking the state of Michigan to federal court over its ban on direct sales to consumers. According to the suit, Tesla is seeking “to vindicate its rights under the United States Constitution to sell and service its critically-acclaimed, all-electric vehicles at Tesla-owned facilities in the State of Michigan”.
      This suit comes after the Michigan's Secretary of State office denied Tesla a dealership license earlier in the month.
      “The license was denied because state law explicitly requires a dealer to have a bona fide contract with an auto manufacturer to sell its vehicles. Tesla has told the department it does not have one, and cannot comply with that requirement,” said Michigan Department of State Communications Director Gisgie Dávila Gendreau in an email to The Detroit News at the time.
      The law in question was signed back in 2014 by current Governor Rick Snyder which made it illegal for an auto manufacturer to sell vehicles directly to consumers. The law also prohibits a manufacturer from performing service on their vehicles.
      “For the last two years, Tesla has pursued legislation in Michigan that is fair to everyone and that would benefit Michigan consumers. Giving auto dealers a monopoly on car sales benefits them, but harms consumers,” said a Tesla spokeswoman to Automotive News in a statement.
      The lawsuit names Synder, attorney General Bill Schuette, and Michigan Secretary of State Ruth Johnson as defendants. Tesla has also requested for a jury trial. 
      Tesla is seeking a permanent injunction to prevent officials in the state to enforce the relevant part of the law. This would force the state to give Tesla a dealer license.
      We'll be watching closely to see if Tesla can make any headway.
      Source: Automotive News (Subscription Required), The Detroit News
    • By dfelt
      Gizmodo reports Tesla is being sued by 127 people in Norway cause Insane mode is not insane enough.
      http://gizmodo.com/telsa-sued-because-insane-mode-not-insane-enough-1786893579
      Pretty interesting reading, clearly buying the P85D with insane mode is understandably not as insane as a P90D or P100D. Guess these people have more money than brains.
       
    • By William Maley
      In news that will likely not shock anyone, Michigan's Secretary of State office has official denied Tesla a dealership license to sell vehicles in the state. The ruling issued last week follows a hearing earlier this month to review Michigan's initial motion to deny Tesla's request for a license, submitted last November.
      “The license was denied because state law explicitly requires a dealer to have a bona fide contract with an auto manufacturer to sell its vehicles. Tesla has told the department it does not have one, and cannot comply with that requirement,” said Michigan Department of State Communications Director Gisgie Dávila Gendreau in an email to The Detroit News.
      This is due to a state law signed in 2014 which states,  “a vehicle manufacturer shall not … sell any new motor vehicle directly to a retail customer other than through franchised dealers.”
      Tesla has been fighting tooth and nail to sell their vehicles in Michigan for a few years now by lobbying and applying for a license.  As Automotive News notes, Michigan is the most populated state that doesn't have a Tesla gallery or store. 
      "At the urging of local car dealers and GM, Michigan law was changed two years ago to prevent Michigan consumers from buying cars from a Tesla store within the state. As part of the process of challenging the legality of that law, Tesla applied for a license in Michigan. Tesla will continue to take steps to defend the rights of Michigan consumers," Tesla said in a statement to Automotive News.
      Now people outside of Tesla have been trying to change the law. As we reported back in February, a 22-year launched a petition to repeal this law. Also, Rep. Aaron Miller, R-Sturgis introduced a bill into the state's legislature to allow companies like Tesla to do direct sales. But as The Detroit News reports, the bill has sat stagnant.
      “The discussion’s not over but for this session I think we’ve reached that point of no progress. I think the clock is going to run out on us,” said Miller.
      Now it should be stated that anyone from Michigan who wants to order a Tesla can do so from the company's website. You'll have to pickup your vehicle outside of the state however, the closest ones being in Ohio.
      Where does Tesla go next? That is anyone's guess at the moment. But as Tesla's general counsel Todd Maron said back in May, the company would either go to court or the legislation to make the change. Our hunch is Tesla will be going for the former.
      Source: Automotive News (Subscription Required), The Detroit News

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