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Michigan argues Tesla “never sought the ability to directly sell” within state
Michigan officials have filed a response to a Tesla federal lawsuit which alleges that the state has unfairly denied the Silicon Valley-based electric car company from selling cars within the state. At issue is a “Anti-Tesla” amendment that prevents the company’s effort to “sell and service its critically-acclaimed, all-electric vehicles at Tesla-owned facilities” in that state.
The state says they have an entirely different interpretation and call Tesla’s version “incorrect.” Michigan requires that vehicles must be sold through a franchised dealer. Today’s state response includes Michigan’s argument that Tesla “has never sought the ability to directly sell its vehicles in Michigan but only licenses to operate dealerships.”
In an email to The Detroit News today, Tesla said, “If it’s the state’s position that Tesla can sell its cars directly to consumers, Tesla welcomes that opportunity and invites the state to work with us so that we can start serving our customers in Michigan as soon as possible.”
Of course, the Big Three automakers — General Motors, Ford Motor Company, and Fiat Chrysler Automobiles US— have their headquarters in the Detroit area.
An October 2014 Michigan state law bans automakers from selling vehicles directly to consumers. The Michigan Legislature, backed by the state’s new-car dealership lobby, voted strongly in favor of the amendment, which has come to be known as the “anti-Tesla” bill. Many believe that the law was intended to close a loophole that Tesla has used in other states to maintain company-owned retail stores and bypass the dealership route. Tesla’s complaint outlines that the “only conceivable reason” for the law is “to reward the dealers’ generous lobbying efforts by handing them a monopoly.”
Tesla seeks two things in its lawsuit. To start, it is asking for a declaratory judgment that Michigan’s ban on direct-sales violates the Due Process, Equal Protection, and Commerce Clauses of the Constitution as applied to Tesla. The law, Tesla says, prohibits it from selling its vehicles directly to consumers, and it also precludes Tesla from performing service and repairs within the State. Moreover, Tesla wants a permanent injunction preventing state officials from enforcing the law, including the October 2014 amendment.
What’s the state’s retort? The state argues a 2000 state law would not have allowed Tesla to sell its vehicles, and Tesla wasn’t incorporated until three years later. “The statutory scheme that plaintiff claims discriminates against plaintiff has existed in its current form since before plaintiff existed as a company,” the state says in its response.
The Michigan Secretary of State’s office had denied Tesla’s new-dealership license request in September. The governor had declared that the law “clarifies and strengthens” an existing long-standing prohibition of new car direct sales in Michigan. Soon after, on September 22, 2016, Tesla filed the lawsuit in federal court in western Michigan against three individuals: Governor Rick Snyder, Michigan Secretary of State Ruth Johnson, and Attorney General Bill Schuette. The state contends that none of these individuals has “violated any of plaintiff’s constitutional rights, or any rights whatsoever.”
Earlier this month, Tesla opened a Troy gallery showroom, housed within a Nordstrom department store. With an artistic atmosphere, the 700-square-foot space includes a Model X SUV for consumers to scrutinize. However, no sales can be made at the site. Instead, customers must head online for product details and ordering information.
Governor Snyder commented about the Tesla-Nordstrom gallery with a politician’s finesse. “That’s a legal issue that I’ve said would be a good topic for the Legislature to look at, to say what about new manufacturers and those issues. I would encourage our Legislature to look at (Tesla’s gallery surrogate showroom) when they deem appropriate.”
Tesla is requesting a jury trial.
“Tesla will continue to fight for the rights of Michigan consumers to be able to choose how they buy cars in Michigan. Giving auto dealers a monopoly on car sales benefits them, but harms consumers,” said Tesla in a statement.
News
Tesla lands new partnership with Uber as Semi takes center stage
Tesla and Uber will work together, using the company’s all-electric Semi, to make sustainable Class 8 electric trucks more affordable with three main strategies: Subsidized Pricing, Predictable Growth, and Optimization of Utilization.
The Tesla Semi has led to a new partnership between the company and Uber, as the two are launching a program that aims to revolutionize logistics by making sustainable commercial vehicles more accessible.
Uber announced on Tuesday that it was planning to launch the Dedicated EV Fleet Accelerator Program in a new partnership with Tesla. Uber’s Freight division is mainly responsible for the new program, which it calls a “first-of-its-kind buyer’s program designed to make electric freight more affordable and accessible by addressing key adoption barriers.”
Tesla and Uber will work together, using the company’s all-electric Semi, to make sustainable Class 8 electric trucks more affordable with three main strategies: Subsidized Pricing, Predictable Growth, and Optimization of Utilization.
- Subsidized Price: Fleets purchasing Tesla Semis through this program will receive a subsidy on the purchase price.
- Predictable Growth: Fleets will integrate their Tesla Semis into Uber Freight’s dedicated solutions for shippers for a pre-determined period. This creates an opportunity for carriers to forecast revenue with confidence, while shippers gain consistent access to reliable, zero-emission capacity.
- Optimize Utilization: Uber Freight taps into its extensive freight network to match carriers with consistent, high-quality freight from our strong shipper base—helping ensure the addition of these Tesla Semis stay fully utilized and carriers see dedicated, real, measurable returns from the start
Tesla will work directly with interested companies to iron out technical details about the Semi, as well as its cost of ownership based on the tailored needs of their business. Fleets can expect savings on the first day, Uber says, as they will avoid diesel fuel costs and reduced maintenance, a widely known advantage of EVs.
Uber announced that it had partnered with select carriers to pilot the Dedicated EV Fleet Accelerator Program prior to its launch:
“During the 2-month pilot program, the Tesla Semis showcased both reliability and efficiency for Uber Freight’s shipper network. Over 394 hours of drive time, carriers covered 12,377 miles. With an average net energy consumption of just 1.72 kWh per mile and only 60 hours of total charge time, these results highlight the operational viability of Tesla Semis on demanding freight lanes. “
In its press release launching the program, Uber effectively highlights how the use of the Semi can impact a company’s margins and profitability through fuel savings, reduced maintenance costs, and lower total cost of ownership.
This is something that turns so many people away from gas cars and toward EVs, so it’s no surprise that Uber wanted to emphasize this point on a larger scale with a company that utilizes a fleet of vehicles.
Tesla Semi shows strong results in ArcBest’s real-world freight trial
Tesla has been experimenting with a select group of companies, as well. It partnered with PepsiCo. several years ago, in an effort to launch a pilot program for the Semi. It had excellent results, showing higher efficiency, lower costs, and an exceptional ability to handle long runs.
Drivers have had a lot of positive things to say:
The Semi will enter mass production next year, but we anticipate that some companies will commit to Uber’s new platform well before then.
Tesla will recall Powerwall 2 units in Australia after a handful of property owners reported fires that caused “minor property damage.” The fires were attributed to cells used by Tesla in the Powerwall 2.
Tesla Powerwall is a battery storage unit that retains energy from solar panels and is used by homeowners and businesses to maintain power in the event of an outage. It also helps alleviate the need to rely on the grid, which can help stabilize power locally.
Powerwall owners can also enroll in the Virtual Power Plant (VPP) program, which allows them to sell energy back to the grid, helping to reduce energy bills. Tesla revealed last year that over 100,000 Powerwalls were participating in the program.
Tesla announces 100k Powerwalls are participating in Virtual Power Plants
The Australia Competition and Consumer Commission said in a filing that it received several reports from owners of fires that led to minor damage. The Australian government agency did not disclose the number of units impacted by the recall.
The issue is related to the cells, which Tesla sources from a third-party company.
Anyone whose Powerwall 2 unit is impacted by the recall will be notified through the Tesla app, the company said.
Tesla is launching Cybertruck orders in a new market, but there’s a bit of a catch.
The Cybertruck was launched in the Middle East earlier this year, as Tesla launched the ability to place a reservation for the all-electric pickup in the United Arab Emirates. It would be the first market outside of North America that would have the ability to place an order for the Cybertruck.
Tesla confirms Cybertruck will make its way out of North America this year
Other markets where the vehicle has been widely requested, like Europe and Asia, have still not approved the vehicle to be sold to the public, mostly because of size and design restrictions.
However, in the UAE, Tesla is opening up the ability for those who placed reservations for the vehicle to finally put in their order. The Order Configurator is only available to those who have already placed a reservation; it is not yet available to the public.
Tesla said it would open up the public online configurator across the Middle East in the coming weeks:
If you’re in the UAE and you have a Cybertruck reservation, you can now order your new truck
The public will get access in the coming weeks. https://t.co/KJaP7NEfiT
— TESLARATI (@Teslarati) September 16, 2025
The UAE is not the only country that will have access to the Cybertruck, as fans in other Middle Eastern countries will also be able to place orders soon. Tesla announced back in April that Saudi Arabia and Qatar would also have Cybertruck deliveries.
These vehicles will be built at Tesla’s Gigafactory Texas plant just outside of Austin, as Gigafactory Berlin and Gigafactory Shanghai, two factories located in the same hemisphere as the Middle East, do not have established lines for Cybertruck production.
As for the other markets, Tesla CEO Elon Musk has hinted that the company could develop a smaller Cybertruck for those markets, as he admitted that in the long term, it likely made sense to build a more compact version for regions where roads are traditionally tighter.
Elon Musk hints at smaller Tesla Cybertruck version down the road
There has been no evidence of Tesla developing this more compact version, but it could eventually happen.
Tesla lands new partnership with Uber as Semi takes center stage
Tesla recalls Powerwall 2 units in Australia
Tesla launches Cybertruck orders in a new market with a catch
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