News
As OK’s anti-Tesla bill moves forward, its author believes a compromise is possible
The electric vehicle community in the United States took a collective gasp earlier this month when a proposed House Bill in Oklahoma unanimously passed a committee vote. The bill in question, HB 3994, aims to update and change parts of existing Oklahoma statutes related to the state’s auto industry. Now, this may sound harmless enough, but a look at the 70-page bill shows that companies like Tesla could lose out heavily if HB 3994 becomes law.
Tesla is already not allowed to directly sell its cars to consumers in Oklahoma, but HB 3994 could give the company even more headaches. What is particularly alarming with HB 3994’s language is the fact that it could be interpreted as a means to prevent automakers like Tesla from delivering and servicing vehicles in the state. This may result in Oklahoma-based Tesla owners being required to travel out of state just to have their vehicles serviced.
Tesla takes the bill very seriously, with the company urging owners on its Engage page to vote “No” to HB 3994. “If passed, this bill could force Tesla to close its existing locations in Oklahoma and prevent Tesla from shipping cars to anyone in the state, which would force locals to travel out-of-state to service their cars or pick up their new Tesla vehicles. Oklahoma should focus on increasing revenue and jobs in the state, not stifling competition and limiting consumer choice,” Tesla noted on its Engage page.
Oppositions and Risks
To state that Oklahoma-based Tesla owners are passionately trying to prevent HB 3994 from progressing further would be an understatement. Tesla owners are currently lobbying against the bill, with some even heading to the capitol last week to speak with the bill’s author, Representative Mike Dobrinski, who has an extensive background in the state’s auto sector. As per Dobrinski’s LinkedIn page, he was the Owner/Dealer of Dobrinski Chevrolet, Inc. until March 2017, and he was the Dealer/Owner of Dobrinski of Kingfisher, Inc., a Chevrolet-Buick-GMC dealership, until October 2018.
The Tesla owners’ talk with the Representative at the capitol last week was brief, according to information shared with Teslarati. Dobrinski highlighted the idea that HB 3994 is a way to protect Tesla owners in Oklahoma because if the EV maker refuses to cover its customers under warranty, then consumers will have no backup. Such a scenario seems unlikely, however.
Senator Mary B. Boren (Credit: Oklahoma Senate)
It’s not just Tesla owners in the state who are against HB 3994. Oklahoma Senator Mary B. Boren, who drives a Tesla Model 3 herself, has openly criticized the bill. In a short conversation with Teslarati, Senator Boren noted that Oklahoma must let the product and the market decide if the state wants innovation to flourish. Initiatives such as HB 3994, which could result in automakers with no dealerships getting the short end of the stick, are counterproductive.
The Senator’s statements could very well ring true. Just recently, reports emerged that Tesla battery partner Panasonic has decided to acquire a factory site in the United States for the production of high-capacity lithium-ion batteries. Panasonic has reportedly shortlisted its preferred US locations to Oklahoma and Kansas. Senator Boren remarked that the presence of bills like HB 3994 could potentially discourage companies like Panasonic from investing in Oklahoma.
“If you have capitalistic laws being passed to protect a particular industry and their business model and to insulate them from the market demands that require them to adjust, then any innovative industry related to EVs will notice that — and they will notice that cronyism is at play. They will find friendlier environments,” Sen. Boren said.
Insights from HB 3994’s Author
The fact that HB 3994 unanimously passed a committee vote earlier this month shows that the bill is also seeing substantial support, despite its harsh repercussions on companies like Tesla and its local electric vehicle owners. When asked by Teslarati about the rationale behind the controversial bill, Rep. Dobrinski explained that HB 3994 is a request bill from the Oklahoma Auto Dealer Association.
“A request bill from the Oklahoma Auto Dealer Association, it seeks to strengthen the position of franchised dealers from the ever-increasing demands and requirements of their legacy manufacturers. Doing so requires addressing Direct Shippers, including Tesla, that are not currently regulated by the Oklahoma Motor Vehicle Commission like franchised dealers are. Proper legislation and regulation will ensure that existing service facilities may remain open and consumers will have additional protections,” Dobrinski noted.
Representative Mike Dobrinski (Credit: Oklahoma State Legislature)
Interestingly enough, the Representative admitted that while HB 3994 includes provisions that may be used to force Tesla into closing its service centers in the state, he does not expect that part of the bill to make it to HB 3994’s final iteration. “I do not expect that provision to be included in the (bill’s) final language,” Dobrinski later stated.
The Representative deserves praise for his honesty with HB 3994, though one may wonder why the controversial bill’s most heavy-handed provisions were included in the first place. When confronted by Tesla owners online, Dobrinski has maintained that HB 3994 is far from finished, but it has already opened the doors for communication among automotive businesses in the state.
“This bill, as introduced, is far from the finished product. It is forcing engagement from franchise auto dealers, legacy manufacturers, and new EV manufacturers, including Tesla. These folks are all talking now for the first time ever to work on a plan of regulation going forward that ensures competition and improves customer satisfaction under the purview of the Oklahoma Motor Vehicle Commission,” Dobrinski wrote.
A Price for Compromise?
Considering the statements of HB 3994’s author, it appears that the bill could partly be seen as a way to achieve a compromise of sorts between companies like Tesla, electric vehicle owners, and the state’s franchised auto dealerships. However, existing Tesla owners in Oklahoma fear that if HB 3994 passes into law, it could adversely affect not only their ownership experience but also their daily lives.
Cristen Winter Huber, a Tesla owner and a foster mother, is one of them. Being a foster mother, Huber is unable to take her foster children outside Oklahoma without a judge’s permission. According to Huber, the harsher portions of HB 3994 could effectively disrupt her family dynamic, and it might motivate her to leave the state.
“It’s not feasible for my family to drive out of state frequently. I’m a parent and foster parent. I have to get approval from a judge to take my foster child out of state. If I have to leave the state to service my car, I might as well move to a state that welcomes growth and innovation,” Huber said.
Jochen Hoppert, the President of the Tesla Owners Club of Oklahoma, noted that HB 3994 is not only a step in the wrong direction — it can have repercussions far beyond Tesla. The Tesla Club President also stated that so far, the EV maker’s service centers in Oklahoma City and Tulsa are proving that Tesla is serious about supporting its customers.
“Tesla is still not permitted to sell or deliver vehicles from those locations. We hope that will change in the future, yet this anti-competitive bill is clearly a step in the opposite direction. It’s worth noting that this move would not only negatively affect Tesla and the local Tesla community but other up-and-coming electric vehicle manufacturers wishing to do business in the state.
“Rep. Mike Dobrinski, the creator of this bill… has shared his perspective, which includes the notion that this bill would provide benefit to the consumer by allowing the state to manage the presence of warranty, service, and other such things for the consumer as required features of the electric vehicle marketplace. The Tesla service centers in Oklahoma City and Tulsa already demonstrate Tesla’s desire to provide its customers with such services,” Hoppert said.
Following its unanimous committee approval, House Bill 3994 has now advanced to the House Floor. But before the bill could become a law, the Oklahoma Governor would have to approve it first. With this in mind, Tesla owners and electric vehicle advocates still have some time to fight against the bill, or at least lobby for significant changes. Rep. Mike Dobrinski himself has been consistent with the idea that HB 3994 is still open for edits, so it may be a good idea for Tesla owners in the state to push their efforts even more from this point forward.
Those interested in speaking up and supporting Tesla’s efforts against Oklahoma’s HB 3994 could click here.
A copy of Oklahoma HB 3994 could be viewed below.
Hb3994 Int by Simon Alvarez on Scribd
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
SpaceX issues statement on Starship V3 Booster 18 anomaly
Tesla analyst maintains $500 PT, says FSD drives better than humans now
