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Rivian is suing Ohio for a direct sales ban, and it lists Tesla as getting favoritism

“…the Legislature enacted a special provision for Tesla that not only permitted Tesla to continue selling vehicles from two dealerships it already had in the state, but also to sell vehicles from an additional dealership. This special provision does not apply to Rivian.”

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Credit: Teslarati

Rivian is suing the State of Ohio’s Bureau of Motor Vehicles because it will not allow the automaker to sell vehicles directly to customers.

Direct sales are enabled for Tesla in the state, however, and Rivian, a rival of the Musk-headed company, says the EV leader is getting favoritism because it is allowed to use direct sales.

Calling the direct sales ban “irrational in the extreme,” according to the Verge, which first reported on the lawsuit, Rivian claims Ohio is putting money ahead of what is best for car buyers:

“Ohio’s prohibition is pure economic protectionism for the benefit of Ohio’s existing auto dealers, putting their profits ahead of consumers.”

Direct sales are used to sell vehicles at a fixed price to consumers without using the traditional dealership model. Tesla does not allow dealerships to be bought like franchises.

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The company owns all of its showrooms, and it has set prices on its cars. Consumers traditionally cite car negotiations as one of the most stressful activities; Tesla has always avoided it.

In Ohio, it is allowed to sell directly to customers who want to buy its products, but Rivian is not allowed as of now. This suit aims to change that.

It said:

“In 2014, the Ohio Legislature enacted a bill providing that the Ohio Registrar of Motor Vehicles shall deny a motor vehicle dealers’ license—which is required to sell vehicles in Ohio—to anyone who is “a manufacturer, or a parent company, subsidiary, or affiliated entity of a manufacturer, applying for a license to sell or lease new or used motor vehicles at retail.” R.C. 4517.12(A)(11). At the same time, the Legislature enacted a special provision for Tesla that not only permitted Tesla to continue selling vehicles from two dealerships it already had in the state, but also to sell vehicles from an additional dealership. This special provision does not apply to Rivian. As a result, Ohioans seeking to purchase Rivian vehicles must do so through Rivian’s dealer-licensed locations in other states.”

Rivian said in the complaint that it does not claim that Ohio’s provision for Tesla is unconstitutional. However, it does argue that the prohibition of direct sales is unconstitutional as applied to Rivian.

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Therefore, it believes it should be able to sell directly to consumers in Ohio as Tesla can.

The case is Case No. 2:25-cv-858, Rivian, LLC, vs. Charles L Norman, Registrar of Motor Vehicles of the Ohio Bureau of Motor Vehicles.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Elon Musk

Elon Musk just roasted Sam Altman’s Tesla Roadster cancellation

“And you forgot to mention act 4, where this issue was fixed and you received a refund within 24 hours.

But that is in your nature.”

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Elon Musk has responded to OpenAI CEO Sam Altman’s decision to cancel his Tesla Roadster reservation, which he revealed on X on Thursday.

We reported on Altman’s decision, which he called “A tale in three acts,” showing his confirmation email from Tesla back in 2018, an email requesting his $50,000 deposit back after canceling his order, and a notification from Google that the email he sent was not delivered.

Musk did not take too kindly to the post from his tech rival, first referencing his position with OpenAI, and then confirming that Altman received his reservation deposit back within 24 hours:

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OpenAI was started by Musk, Altman, and others back in 2015, and was geared toward being a non-profit company that would develop safe artificial intelligence that would be accessible to people.

However, Musk and Altman did not agree on the future of the company. Musk left, and Altman turned OpenAI into a for-profit company. This led to a variety of lawsuits and some very public spats between the two. Musk has called out Altman for turning the company into a for-profit, which has been his main source of criticism for his former colleague.

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The Roadster has been hanging in the balance of Tesla’s manufacturing plans for seven years, but the company has made more indications that it will be unveiled later this year and will have some insane technologies.

Musk said on Friday in an episode of the Joe Rogan Experience Podcast that Tesla is “getting close to demonstrating the prototype.”

He said:

“Whether it’s good or bad, it will be unforgettable. My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars. I think if Peter wants a flying car, he should be able to buy one…I think it has a shot at being the most memorable product unveil ever. [It will be unveiled] hopefully before the end of the year. You know, we need to make sure that it works. This is some crazy technology in this car. Let’s just put it this way: if you took all the James Bond cars and combined them, it’s crazier than that.”

Musk hinted that the vehicle could fly and would have “crazy technology” that would put James Bond’s vehicles to shame. It will be interesting to see what Tesla will unveil when the event happens and if it can come through on this mind-blowing teaser.

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Elon Musk

Tesla to ramp to 500 Robotaxis in Austin, 1,000 in Bay Area, by end of 2025: Musk

This was, at least, as per recent comments from CEO Elon Musk during his appearance on the All-In podcast.

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Credit: Tesla

Tesla’s Robotaxi pilot is still in its early stages, but it seems like the program in Austin and the Bay Area will see a notable update soon. This was, at least, as per recent comments from CEO Elon Musk during his appearance on the All-In podcast. 

Robotaxi expansion

While discussing Tesla’s Robotaxi ambitions, Elon Musk shared some tidbits about the company’s targets for the autonomous ride-hailing program. As per Musk, Tesla is pushing to increase its Robotaxi fleet size in Austin to 500 units. The Robotaxi fleet in the Bay Area will also be increased to 1,000 units. These expansions are expected to be accomplished by the end of the year.

“We’re scaling up the number of cars to, what happens if you have a thousand cars? Probably we’ll have a thousands cars or more in the Bay Area by the end of this year, probably 500 or more in the greater Austin area,” Musk said in the podcast. 

Considering that there are only two months left in the fourth quarter of 2025, Tesla’s Robotaxi team will likely be extremely busy during the next eight weeks. A successful expansion of the Robotaxi pilot in Austin and the Bay Area will also bode well for the company’s ride-hailing program, which has been pretty conservative as of late.

Musk’s Robotaxi comments

Elon Musk has been pretty clear in the past that Tesla’s FSD and Robotaxi network would play a huge role in the company’s future valuation and potential. Thus, during the third quarter earnings call, Musk highlighted that Tesla will also be transitioning to a system with no safety monitors in Austin by the end of the year. 

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“We are expecting to have no safety drivers in at least large parts of Austin by the end of this year. So within a few months, we expect to have no safety drivers at all in at least parts of Austin. We’re obviously being very cautious about the deployment,” Musk said during the Q3 2025 earnings call.

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Elon Musk

Neuralink’s first patient could receive an upgrade: Elon Musk

Musk stated that Arbaugh could also be the first Neuralink patient to receive an upgrade.

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Credit: Neuralink

Neuralink’s first human patient might be in line for a very interesting development in the future.

Based on recent comments from Elon Musk, Neuralink seems to be considering an “upgrade” for its first human patient, allowing him to perform even more sophisticated tasks using only his mind. 

Elon Musk’s recent comments

Musk’s update came as a reply to an X post that featured some details about the current activities of Noland Arbaugh, the first person in the world to receive a Neuralink implant. Since receiving his implant, Arbaugh has been able to take back his life, and he now games, attends class, and even works as a paid speaker. 

In his response, Musk stated that Arbaugh could also be the first Neuralink patient to receive an upgrade. “Noland might be the first to receive a Neuralink upgrade and/or dual Neuralink implant to further augment his abilities. It won’t be long before a Neuralink recipient can beat most and eventually all humans at fast reaction video games,” Musk wrote in a post on X.

Noland’s recent update

Noland actually provided a quick update about his life with his Neuralink implant, which he fondly named Eve, on X. He noted that his direct involvement with Neuralink has lessened as more participants have joined the company’s human trials. And despite a recent pressure sore setback, he remains optimistic and teased “big news” coming for his two-year update in early 2026.

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Beyond his recovery, Arbaugh stated that Neuralink has made everyday goals achievable again. He is currently studying neuroscience, taking chemistry, biology, and pre-calculus and maintaining good grades, something he said would have been impossible without Neuralink.

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