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

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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.

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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.

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“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.

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+

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Nikola Motor founder Trevor Milton given full pardon by President Trump

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Credit: Nikola Motor

Nikola Motor founder Trevor Milton has been given a full pardon by U.S. President Donald Trump in an unprecedented turn of events.

Trevor Milton Media announced late Thursday that the formerly jailed founder of the all-electric automaker that President Trump had “pledged to end the political weaponization of the Justice Department. This pardon marks a step toward fulfilling that commitment.”

Milton was sentenced to four years in prison in December 2023 after being found guilty of multiple counts of fraud.

Nikola founder Trevor Milton sentenced to four years in prison

“I was not a very seasoned CEO,” Milton said after his sentencing. Questions about the legitimacy of some Nikola product demonstrations and several statements that were found to be misleading regarding the company’s progress on its vehicles brought Milton to U.S. Federal Court to face two counts of wire fraud and one count of securities fraud.

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Now, he is free.

Milton said in a statement:

“This pardon is not just about me—it’s about every American who has been railroaded by the government, and unfortunately, that’s a lot of people. It is no wonder why trust and confidence in the Justice Department has eroded to nothing. I wish judges would stop believing whatever the prosecutors feed them so Americans could trust the justice system again. Until that happens, our justice system will continue to erode until there is nothing left. The 90+% conviction rate in New York is appalling and is a result of prosecutors getting whatever they want and putting innocent people in prison. I saw firsthand the tactics they use to achieve those guaranteed convictions. I am incredibly grateful to President Trump for his courage in standing up for what is right and for granting me this sacred pardon of innocence.”

Milton will now launch a documentary that is available for preview here.

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Tesla vandal who lit Las Vegas repair center on fire arrested

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A vandal in Las Vegas who lit a Tesla repair center on fire has been arrested, bringing a name and face to the crime that engulfed vehicles and a structure in flames.

Officers in Las Vegas arrested Paul Kim, a 36-year-old, on Wednesday. He faces charges of arson and possessing an explosive device.

The Tesla repair center at 6260 West Badura Avenue was set aflame on March 18 at around 2:45 a.m. In total, five vehicles were set on fire, as well as the building itself. It was one of the more notable instances of vandalism against Tesla in recent months, but police now have their culprit.

Las Vegas Metro Police Department Sheriff Dori Koren described the weapons Kim used to execute the attack:

“He used what appeared to be multiple Molotov cocktails and firearms to conduct his attack.”

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As the instances of attacks on Tesla continue to be publicized, we are now seeing considerable pushback from owners, the company, and even the United States government regarding what it calls “domestic terrorism.”

Owners are now filing lawsuits against those who vandalize their vehicles, as the first civil suit against a vandal was filed in Texas yesterday.

Tesla has not made any moves itself against the vandals, but we expect the company to potentially enter some litigation against groups or politicians that incite violence against its property and the owners of its vehicles.

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Additionally, the U.S. government has utilized the FBI to probe incidents against Tesla as a part of them being constituted as instances of domestic terrorism. Earlier this month, the Bureau established a specific task force to handle Tesla-related attacks.

“The FBI has been investigating the increase in violent activity toward Tesla, and over the last few days, we have taken additional steps to crack down and coordinate our response,” FBI head Kash Patel said on X. “This is domestic terrorism. Those responsible will be pursued, caught, and brought to justice.”

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Elon Musk clarifies Trump tariff effect on Tesla: “The cost impact is not trivial”

The U.S. President has stated that Elon Musk stayed silent and provided no input in the administration’s tariffs.

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

U.S. President Donald Trump’s plan to implement a 25% tariff on non-U.S.-made vehicles starting next week would affect American electric car maker Tesla. 

This was confirmed by CEO Elon Musk in a recent post on social media platform X.

Musk and Trump

While Elon Musk works closely with the Trump administration due to his role in the Department of Government Efficiency (DOGE), the U.S. president has emphasized that the Tesla CEO never asks for favors. This was highlighted in his recent comments, when he stated that Elon Musk stayed silent and provided no input in the administration’s 25% auto tariffs.

When asked by reporters if the new tariffs would be good for Tesla, Trump noted that they may be “net neutral or they may be good.” The U.S. president also pointed to Tesla’s automotive plants in Fremont, California and Austin, Texas, which produce vehicles that are sold in the country. “Anybody that has plants in the United States — it’s going to be good for them,” Trump noted.

Tesla Affected

In a post on X, Elon Musk clarified that the Trump administration’s tariffs would affect the prices of vehicle parts that are sourced from other countries. This was a concern that Tesla previously outlined in a letter to the U.S. Trade Representative, which noted that even with “aggressive localization” of its supply chain, “certain parts and components are difficult or impossible to source within the United States.”

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As per Musk in his recent post on X, the cost impact of the Trump administration’s tariffs is no joke. “To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk wrote in his post.

Potential Effects

Reactions to Musk’s comments from users of the social media platform were varied, with some speculating that the Trump auto tariffs could result in Teslas becoming more expensive in the United States. Despite this, the potential increases in Tesla’s vehicle prices might not be as notable as other cars, particularly those that are produced outside the country.

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