Tesla has finally settled on a name for its upcoming compact all-electric sedan. The new model, which is expected to start around $35,000 and possess a range of up to 200 miles, will be called the Model III.

Speaking with Auto Express, Tesla chief Elon Musk explained why a clash with Ford forced the automaker to abandon plans for its first-choice “Model E” moniker.

“We had the model S for sedan and X for crossover SUV, then a friend asked what we were going to call the third car,” said. “So I said we had the model S and X, we might as well have the E.

“We were going to call it model E for a while and then Ford sued us saying it wanted to use the Model E – I thought this is crazy, Ford’s trying to kill sex! So we’ll have to think of another name. The new model is going to be called Model 3, we’ll have three bars to represent it and it’ll be S III X!”

While Musk didn’t delve into the specs of the Model III, previous reports have suggested it will not ride on a shortened version of the Model S’ all-aluminum architecture, instead relying on a unique platform with less-expensive steel components. In size, the sedan will likely be about 20 percent smaller than the Model S.

The BMW 3 Series-rivaling Model III is expected to debut in 2016 and hit the market in 2017, roughly two years after Tesla’s next product, the Model X crossover.

Update for Tesla Roadster

During his interview with Auto Express, Musk revealed one other interesting tidbit – Tesla is planning a battery upgrade for the discontinued Roadster that should boost maximum range from 245 to 400 miles.

Photo by Ronan Glon.

The Obama Administration has declined to intervene on behalf of Tesla as the startup continues to fight state laws that ban direct sales to customers.

Responding to a “We the People” petition that called for the executive branch to “allow Tesla Motors to sell directly to consumers in all 50 states,” the White House posted a reminder that laws regulating vehicle sales traditionally sit with lawmakers at the state level.

“We believe in the goal of improving consumer choice for American families, including more vehicles that provide savings at the pump for consumers,” the administration wrote. “However, we understand that pre-empting current state laws on direct-to-consumer auto sales would require an act of congress.”

Tesla appears to be winning concessions in several states that enforced outright bans on direct-sales when the petition was first submitted in June 2013. The company’s business model has received public support and backing from both Republicans and Democrats.

Dealer lobbyists have pushed for existing franchise laws to be tightened, arguing that Tesla’s direct-sales approach gives the company an unfair advantage. In states where such proposals have been placed under public scrutiny, the dealer position has received little support.

Tesla in several instances has reached compromises with lobbyists and state legislatures, allowing the company to continue direct-sales operations at a limited number of locations in the battleground states.

The Insurance Institute for Highway Safety has published its first list of recommended used vehicles for teen drivers.

The organization acknowledges that 83 percent of vehicles purchased for teen drivers are used, rather than new models that are frequently highlighted following the latest crash tests.

Recommendations are split between the “best choices,” all under $20,000 but averaging around $14,000, that earned at least 4/5 stars overall or 4/5 stars in the front and side tests under the old rating scheme. The list of “good choices,” all under $10,000 — fitting the purchase profile for most teen drivers’ first vehicle — meet the same general criteria and a “better-than-poor” rating for head restraints and seats.

Some of the cheapest models in the ‘best’ category include the 2007+ Volvo S80, 2009+ VW Jetta, 2007+ Honda Element, and 2006+ Subaru Tribeca, all of which were found to have a Kelly Blue Book estimated value under $10,000.

For tighter budgets around $5,000, the IIHS ‘good’ list includes the 2006+ Hyundai Azera, 2006-2008 VW Passat, 2005+ Saab 9-3, 2006+ Suzuki Grand Vitara or the 2006+ Kia Sedona.

In general, the IIHS cautions parents to stay away from high-horsepower models and minicars or small cars. Electronic stability control (ESC) is considered “a must” to help inexperienced drivers maintain control on slippery roads, with a risk reduction level comparable to seat belts.

“A teenager’s first car is more than just a financial decision,” says IILS president Adrian Lund. “These lists of recommended used vehicles can help consumers factor in safety, in addition to affordability.”

BMW has significantly expanded its recall related to defective airbag inflators supplied by Takata.

The company initially limited its campaign to 220,000 vehicles from the 2002-2003 model years. The broader recall now includes 1.6 million 3-Series vehicles produced between May 1999 and August 2006, essentially covering the entire E46 generation.

“Potential problems with gas generators that may rupture in vehicles produced by our competitors using similar systems from the same supplier have become evident in rare cases,” the company said in a statement. “BMW is not aware of a case involving a BMW vehicle.”

The latest expansion is focused on passenger-side airbags that may have been outfitted with Takata’s defective inflators. In several accidents involving Japanese vehicles operated in humid environments, the inflators exploded and caused shrapnel injuries.

BMW suggests service centers should be able to replace the airbags in approximately one hour.

The Environmental Protection Agency is reportedly preparing to require all automakers to verify fuel-efficiency estimates via new real-world driving tests.

The move is said to be focused on preventing automakers from using computer modeling or lab-test manipulation to exaggerate mpg claims. The agency has received complaints from many drivers who achieve real-world mpg figures that are significantly lower than manufacturer claims.

Several automakers have been forced to revise their mpg ratings for existing models. Notable cases include a handful of newer models from Hyundai, Kia and Ford.

“Some auto makers already do [real-world verification], but we are establishing a regulatory requirement for all auto makers,” EPA Office of Transportation and Air Quality director Chris Grundler told The Wall Street Journal.

The greatest discrepancies between mpg estimates and real-world performance have appeared in hybrid models. Ford’s 2013-2014 Lincoln MKZ Hybrid is a glaring example, with a recent revision dropping its city/highway mpg estimates by 7-8 mpg.

Ford blamed its error on incorrect rolling-resistance figures that were correlated to wind-tunnel observations when determining mpg estimates. The EPA proposal aims to force companies to compare their computer-modeled variables against observations from real-world testing on a track, verifying figures for wind resistance and rolling friction.

The EPA is preparing to accept public comments on the proposal before moving forward with implementation.

Toyota claims to have set a new Nurburgring record with its Prius Plug-in Hybrid.

Running at an average speed of 40 mph — barely above the 37-mph track minimum — the company was not attempting to set a fastest time, but rather a mpg record.

With an estimated electric-only range of 11 miles, the Prius plug-in would likely have completed the 12.9-mile circuit without using any fuel if it had been flat. The 1,000-foot elevation change, and one long climb in particular, caused the engine to briefly start and consume approximately five tablespoons of gasoline.

Driver Joe Clifford completed the lap in 20 minutes and 59 seconds, achieving an average of 698 mpg thanks to the 1.3 kWh battery pack that provided most of the power needs.

Toyota does have a faster history with electric vehicles at the Nurburgring, setting a 2011 record for EVs with the TMG EV P001. The company returned in 2012 with the TMG EV P002 and lapped the ‘Ring in 7:22.329, 25 seconds quicker than the previous model and slightly faster than a Corvette Z06 lap at the time.

“In a neat link to the record-breaking exploits of the EV P002, the battery cells from that car were used to power up the Prius Plug-in, via Toyota Motorsports’ charging truck,” the company notes.

General Motors is reportedly considering a broader Cadillac Escalade range that could include a sportier edition and variants with V6 engines.

Potentially taking inspiration from Ford’s shift to a V6 engine for the Lincoln Navigator, Cadillac’s brand manager for the Escalade line, David Schiavone, told Automotive News the company may bring both a turbodiesel V6 and a twin-turbocharged gasoline V6 to the flagship luxury SUV.

Unlike the Lincoln Navigator, which eliminates the V8 option, the Escalade is expected to keep the 6.2-liter V8 for the top of the range. Seeing an opportunity to highlight that fact, GM is also considering a new range-topping Escalade that could be called the V-sport.

GM recently hired Infiniti’s Johan de Nysschen to serve as Cadillac president and help revitalize the brand. June shipments showed Cadillac down a few percent for the year, however the Escalade was among the biggest winners with a 74-percent sales jump.

The SUV was already completely redesigned for 2015, but that does not appear to be stopping the company from considering new ways to maintain sales momentum with new packages.

The executive did not mention a potential time-frame for introducing the V-sport or V6 editions.

Jaguar has detailed a handful of technological features for the upcoming XE ahead of its debut next month.

The company claims to have made significant improvements to the traction-control system, labeled “All Surface Progress Control.” Optimized for rear-wheel-drive platforms, it is described as a low-speed cruise control that maintains traction in slippery conditions without skidding and without requiring the driver to touch the pedals.

“Developed with the input of decades of Jaguar Land Rover experience in off-road traction systems, ASPC can electronically gain traction with far less drama than a human driver can achieve,” the company claims.

Engineers have also worked to refine the XE’s handling on dry pavement, pairing Integral Link rear suspension with a front configuration borrowed from the F-Type sports car.

The new model will be the first Jaguar to be equipped with the company’s next-generation electronic steering. Advanced algorithms are claimed to bring a better feel than hydraulic systems, benefiting from variable steering damping and improved tuning.

The platform also benefits from lightweight construction, embracing aluminum components for better fuel efficiency and handling. The basic model will be powered by Jaguar’s new 2.0-liter Ingenium engine, with V6 mills for higher trim levels.

Jaguar will fully reveal the XE at a UK event scheduled for September 6.

Wisconsin attorney Vince Megna, the self-described “King of Lemon Laws,” has claimed victory against Tesla Motors.

The company reportedly agreed to buy back a white Model S from the plaintiff in the lawsuit, which claimed that the car had been in the shop for 66 days due to various problems.

“In the end, Tesla did the right thing; there was no dog fight, no trial, no confidentiality agreement,” Megna says in a a YouTube video celebrating the settlement. “We got exactly what we asked for: $126,836.”

The settlement is said to include the full price of the vehicle, along with $18,500 in attorney fees.