Connect with us

News

Michigan argues Tesla “never sought the ability to directly sell” within state

Published

on

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.”

Advertisement

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.

Advertisement

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.

Advertisement

Carolyn Fortuna is a writer and researcher with a Ph.D. in education from the University of Rhode Island. She brings a social justice perspective to environmental issues. Please follow me on Twitter and Facebook and Google+

Advertisement
Comments

Energy

Tesla Energy gains UK license to sell electricity to homes and businesses

The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.

Published

on

Credit: Tesla Energy/X

Tesla Energy has received a license to supply electricity in the United Kingdom, opening the door for the company to serve homes and businesses in the country.

The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.

According to Ofgem, the license took effect at 6 p.m. local time on Wednesday and applies to Great Britain.

The approval allows Tesla’s energy business to sell electricity directly to customers in the region, as noted in a Bloomberg News report.

Advertisement

Tesla has already expanded similar services in the United States. In Texas, the company offers electricity plans that allow Tesla owners to charge their vehicles at a lower cost while also feeding excess electricity back into the grid.

Tesla already has a sizable presence in the UK market. According to price comparison website U-switch, there are more than 250,000 Tesla electric vehicles in the country and thousands of Tesla home energy storage systems.

Ofgem also noted that Tesla Motors Ltd., a separate entity incorporated in England and Wales, received an electricity generation license in June 2020.

The new UK license arrives as Tesla continues expanding its global energy business.

Advertisement

Last year, Tesla Energy retained the top position in the global battery energy storage system (BESS) integrator market for the second consecutive year. According to Wood Mackenzie’s latest rankings, Tesla held about 15% of global market share in 2024.

The company also maintained a dominant position in North America, where it captured roughly 39% market share in the region.

At the same time, competition in the energy storage sector is increasing. Chinese companies such as Sungrow have been expanding their presence globally, particularly in Europe.

Advertisement
Continue Reading

Elon Musk

Elon Musk shares big Tesla Optimus 3 production update

According to Musk, Tesla is in the final stages of completing Optimus 3, which he described as one of the world’s most advanced humanoid robots.

Published

on

Credit: Tesla China

Tesla CEO Elon Musk has stated that production of Optimus 3 could begin this summer. Musk shared the update in his interview at the Abundance Summit.

According to Musk, Tesla is in the final stages of completing Optimus 3, which he described as one of the world’s most advanced humanoid robots.

“We’re in the final stages of completion of Optimus 3, which is really going to be by far the most advanced robot in the world. Nothing’s even close. In fact, I haven’t even seen demos of robots that are as good as Optimus 3,” Musk said.

He also set expectations on the pace of Optimus 3’s production ramp, stating that the initial volumes of the humanoid robot will likely be very low. Musk did, however, also state that high production rates for Optimus 3 should be possible in 2027. 

Advertisement

“I think we’ll start production on Optimus 3 this summer, but very slow at first, like sort of this classic S-curve ramp of manufacturing units versus time. And then, probably reach high volume production around summer next year,” he said.

Interestingly enough, the CEO hinted that Tesla is looking to iterate on the robot quickly, potentially releasing a new Optimus design every year.

“We’ll have Optimus 4 design complete next year. We’ll try to release a new robot design every year,” Musk stated.

Tesla has already outlined broader plans for scaling Optimus production beyond its first manufacturing line. Musk previously stated that Optimus 4 will be built at Gigafactory Texas at significantly higher production volumes.

Advertisement

Initial production lines for the robot are expected to be located at Tesla’s Fremont Factory, where the company plans to establish a line capable of producing up to 1 million robots per year.

A larger production ramp is expected to occur at Gigafactory Texas, where Musk has previously suggested could eventually support production of up to 10 million robots per year.

“We’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk said previously.

The comments suggest that while Optimus 3 will likely begin production at Fremont, Tesla’s larger-scale manufacturing push could arrive with Optimus 4 at Gigafactory Texas.

Advertisement
Continue Reading

Elon Musk

Tesla showcases Optimus humanoid robot at AWE 2026 in Shanghai

Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show.

Published

on

Credit: Tesla/YouTube

Tesla showcased its Optimus humanoid robot at the 2026 Appliance & Electronics World Expo (AWE 2026) in Shanghai. The event opened Thursday and featured several Tesla products, including the company’s humanoid robot and the Cybertruck.

The display was reported by CNEV Post, citing information from local media outlet Cailian and on-site staff at the exhibition.

Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show. On-site staff reportedly stated that mass production of the robot could begin by the end of 2026.

Tesla previously indicated that it plans to manufacture its humanoid robots at scale once production begins, with its initial production line in the Fremont Factory reaching up to 1 million units annually. An Optimus production line at Gigafactory Texas is expected to produce 10 million units per year. 

Advertisement

Tesla China previously shared a teaser image on Weibo showing a pair of highly detailed robotic hands believed to belong to Optimus. The image suggests a design with finger proportions and structures that closely resemble those of a human hand.

Robotic hands are widely considered one of the most difficult engineering challenges in humanoid robotics. For a system like Optimus to perform complex real-world tasks, from factory work to household activities, the robot would require highly advanced dexterity.

Elon Musk has previously stated that Optimus has the capability to eventually become the first real-world example of a Von Neumann machine, a self-replicating system capable of building copies of itself, even on other planets. “Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.

Advertisement
Continue Reading