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Michigan becomes first state to approve self-driving cars for public roads
Michigan has become the first state to approve the sale of autonomous cars for use on public roads. Governor Rick Snyder signed the legislation making the sale of self-driving cars legal on December 9. The legislation is part of a package of four bills that cleared the Michigan senate last September. In addition to authorizing the sale of autonomous cars, the package includes funding for the American Center for Mobility — a research campus where autonomous driving technologies can be tested before being offered to the public.
Proposed American Center for Mobility Credit: Michigan Economic Development Corp
The new law permits the sale of vehicles similar to Google’s autonomous test car that has no steering wheel, accelerator, or brake pedal. “By establishing guidelines and standards for self driving vehicles, we’re continuing that tradition of excellence in a way that protects the public’s safety while at the same time allows the mobility industry to grow without overly burdensome regulations,” Gov. Snyder said at a bill signing ceremony. “We are still the heart and soul of the auto industry, make no mistake about that,” Snyder continued.
The driving force behind the legislative package — which was vigorously supported by Ford and General Motors — is a desire to stop the brain drain of engineers from Michigan to Silicon Valley and other West Coast technology centers like Seattle. The American Center for Mobility will be constructed at the GM’s former Willow Run powertrain factory and automotive testing area. Prior to that, Willow Run manufactured B-24 bombers during World War II and was an important part of a manufacturing structure that made America the so-called “Arsenal of Democracy.”
Willow Run already has some infrastructure that will be useful for testing autonomous cars. It has long straightaways for high speed testing. It features a three level interchange, a high speed loop, and several bridges and tunnels. In addition, it already has the infrastructure needed to test connected car systems and features mock-ups of urban, suburban, and rural environments, according to AutoBlog.
This legislation will turn “the eyes of the world once again on Michigan for its engineering and its research,” says Michigan senator Ken Horn, a co-sponsor on the legislative package. “It’s a different kind of car-building,” Horn said on the Senate floor prior to voting, “but car-building nonetheless.”
It is ironic that Michigan should be so intent on being a leader in some areas while remaining doggedly opposed to innovations in others. The determining factor seems to be what Ford and General Motors want, as they are the tail that wags the dog in Michigan. The state bitterly opposes Tesla’s direct to customer sales model, for instance.
On the one hand, the state has bought shares of Tesla Motors for its retirement fund. Tesla is also a significant presence in Michigan’s manufacturing sector after purchasing the former Michigan-based Riviera Tool Company. But despite all Tesla’s lobbying efforts, the state’s franchise dealers, with substantial support from General Motors, have managed to block any changes to state law that would permit Tesla to open showrooms in the state to sell its cars directly to the public.
The new law permitting the sale of self-driving cars highlights the current struggle between traditional car companies and technology companies. Leading up to next week’s Technology In Motion conference co-hosted by Automotive News, Mike Ableson, vice president of strategy and global portfolio planning for General Motors, said automakers need to look at “the innovations coming out of Silicon Valley from Apple and Google and Samsung and put boundaries around that, not just for the OEM but also for the consumer. How far into the car do you let them come?”
Frank Weith, director of connected services at Volkswagen Group of America, said automakers need to make sure they don’t lose their identity as new technologies play a larger and larger role in the cars of the future. “We don’t want to be just a commodity, selling bulk vehicles to Google or Apple or Uber,” Weith said. “We want to be part of the consumer experience and keep our product up there.”
Both Ableson and Weith pointedly refrain from mentioning Tesla, but the shadow of Elon Musk is clearly a background factor in their remarks.
Elon Musk
Elon Musk’s Grok records lowest hallucination rate in AI reliability study
Grok achieved an 8% hallucination rate, 4.5 customer rating, 3.5 consistency, and 0.07% downtime, resulting in an overall risk score of just 6.
A December 2025 study by casino games aggregator Relum has identified Elon Musk’s Grok as one of the most reliable AI chatbots for workplace use, boasting the lowest hallucination rate at just 8% among the 10 major models tested.
In comparison, market leader ChatGPT registered one of the highest hallucination rates at 35%, just behind Google’s Gemini, which registered a high hallucination rate of 38%. The findings highlight Grok’s factual prowess despite the AI model’s lower market visibility.
Grok tops hallucination metric
The research evaluated chatbots on hallucination rate, customer ratings, response consistency, and downtime rate. The chatbots were then assigned a reliability risk score from 0 to 99, with higher scores indicating bigger problems.
Grok achieved an 8% hallucination rate, 4.5 customer rating, 3.5 consistency, and 0.07% downtime, resulting in an overall risk score of just 6. DeepSeek followed closely with 14% hallucinations and zero downtime for a stellar risk score of 4. ChatGPT’s high hallucination and downtime rates gave it the top risk score of 99, followed by Claude and Meta AI, which earned reliability risk scores of 75 and 70, respectively.
Why low hallucinations matter
Relum Chief Product Officer Razvan-Lucian Haiduc shared his thoughts about the study’s findings. “About 65% of US companies now use AI chatbots in their daily work, and nearly 45% of employees admit they’ve shared sensitive company information with these tools. These numbers show well how important chatbots have become in everyday work.
“Dependence on AI tools will likely increase even more, so companies should choose their chatbots based on how reliable and fit they are for their specific business needs. A chatbot that everyone uses isn’t necessarily the one that works best for your industry or gives accurate answers for your tasks.”
In a way, the study reveals a notable gap between AI chatbots’ popularity and performance, with Grok’s low hallucination rate positioning it as a strong choice for accuracy-critical applications. This was despite the fact that Grok is not used as much by users, at least compared to more mainstream AI applications such as ChatGPT.
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Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
Canaccord Genuity analyst George Gianarikas raised his Tesla (NASDAQ:TSLA) price target from $482 to $551. He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
The analyst’s updated note
Gianarikas lowered his 4Q25 delivery estimates but pointed to several positive factors in the Tesla story. He noted that EV adoption in emerging markets is gaining pace, and progress in FSD and the Robotaxi rollout in 2026 represent major upside drivers. Further progress in the Optimus program next year could also add more momentum for the electric vehicle maker.
“Overall, yes, 4Q25 delivery expectations are being revised lower. However, the reset in the US EV market is laying the groundwork for a more durable and attractive long-term demand environment.
“At the same time, EV penetration in emerging markets is accelerating, reinforcing Tesla’s potential multi‑year growth runway beyond the US. Global progress in FSD and the anticipated rollout of a larger robotaxi fleet in 2026 are increasingly important components of the Tesla equity story and could provide sentiment tailwinds,” the analyst wrote.
Tesla’s busy 2026
The upcoming year would be a busy one for Tesla, considering the company’s plans and targets. The autonomous two-seat Cybercab has been confirmed to start production sometime in Q2 2026, as per Elon Musk during the 2025 Annual Shareholder Meeting.
Apart from this, Tesla is also expected to unveil the next-generation Roadster on April 1, 2026. Tesla is also expected to start high-volume production of the Tesla Semi in Nevada next year.
Apart from vehicle launches, Tesla has expressed its intentions to significantly ramp the rollout of FSD to several regions worldwide, such as Europe. Plans are also underway to launch more Robotaxi networks in several more key areas across the United States.
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Waymo sues Santa Monica over order to halt overnight charging sessions
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Waymo has filed a lawsuit against the City of Santa Monica in Los Angeles County Superior Court, seeking to block an order that requires the company to cease overnight charging at two facilities.
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Nuisance claims
As noted in a report from the Los Angeles Times, Waymo’s two charging sites at Euclid Street and Broadway have operated for about a year, supporting the company’s growing fleet with round-the-clock activity. Unfortunately, this has also resulted in residents in the area reportedly being unable to sleep due to incessant beeping from self-driving taxis that are moving in and out of the charging stations around the clock.
Frustrated residents have protested against the Waymos by blocking the vehicles’ paths, placing cones, and “stacking” cars to create backups. This has also resulted in multiple calls to the police.
Last month, the city issued an order to Waymo and its charging partner, Voltera, to cease overnight operations at the charging locations, stating that the self-driving vehicles’ activities at night were a public nuisance. A December 15 meeting yielded no agreement on mitigations like software rerouting. Waymo proposed changes, but the city reportedly insisted that nothing would satisfy the irate residents.
“We are disappointed that the City has chosen an adversarial path over a collaborative one. The City’s position has been to insist that no actions taken or proposed by Waymo would satisfy the complaining neighbors and therefore must be deemed insufficient,” a Waymo spokesperson stated.
Waymo pushes back
In its legal complaint, Waymo stated that its “activities at the Broadway Facilities do not constitute a public nuisance.” The company also noted that it “faces imminent and irreparable harm to its operations, employees, and customers” from the city’s order. The suit also stated that the city was fully aware that the Voltera charging sites would be operating around the clock to support Waymo’s self-driving taxis.
The company highlighted over one million trips in Santa Monica since launch, with more than 50,000 rides starting or ending there in November alone. Waymo also criticized the city for adopting a contentious strategy against businesses.
“The City of Santa Monica’s recent actions are inconsistent with its stated goal of attracting investment. At a time when the City faces a serious fiscal crisis, officials are choosing to obstruct properly permitted investment rather than fostering a ‘ready for business’ environment,” Waymo stated.
Elon Musk’s Grok records lowest hallucination rate in AI reliability study
Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
