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‘Anti-Tesla law’ case in Michigan will likely be dragged out into 2018

Source: Teslarati

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The case over Michigan’s ‘Anti-Tesla law’ will be dragged out well into 2018 as both sides are expected to provide a list of expert witnesses next month, and the pre-trial “discovery” phase is predicted to take months.

A lawsuit of this magnitude has the potential to set national precedent in commerce and trade regulations as Tesla continues to defend its business model relying strictly on hype and word-of-mouth.

“Any type of lawsuit like this — whether you win or lose — establishes a precedent,” said David Cole, chairman emeritus of the Center for Automotive Research in Ann Arbor in an article published in The Detroit News. “It’s hard to change the direction of that. It’s a big deal.”

As Model 3 sales begin to roll out, the law is stifling business in a state where car manufacturing is the largest industry.

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The law bars Tesla from practicing its direct-to-consumer distribution model. New auto sales can only be conducted by franchised auto dealerships, which Tesla claims discriminates against out-of-state interests and is an unconstitutional infringement on their preferred business model.

Tesla is currently finding ways around the law — consumers can order their Teslas online but they have to pick them up in neighboring states like Ohio or Illinois.

In Detroit, affectionately referred to as “Motor City,” the automotive industry is the largest industry and largest employer in the entire state of Michigan. Nearly 5 percent of Michigan’s workforce is employed by the auto industry and the industry accounts for $42.4 billion, or nearly 11 percent of the state’s total Gross Domestic Product.

It comes as no surprise that industry giants have powerful lobbyists working to further their agenda. Related political action committees have donated more than $1 million to state office holders since 2011, including all but two active legislators, according to the Michigan Campaign Finance Network as cited in the article.

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Revisions were made to the legislation in 2014, but Musk and company are claiming that these revisions are “protectionist” and are aimed at maintaining the status quo of sales regulations.

Representative Aaron Miller (R-Sturgis), introduced legislation that would allow Tesla and other automakers to distribute directly to retailers rather than franchised dealerships, but the bill went nowhere. Miller is a fervent advocate for free-enterprise and is baffled by the states unwillingness to budge on the matter.

“For me it’s simply common sense,” said Miller. “Refusing any company’s style with protectionist laws is just not the right thing to do. I don’t care if it’s Tesla, a small startup…someone who wants to sell jeans or baseballs directly should not have this sort of barrier to be in the marketplace.”

In addition to the lawsuit, Tesla has also tried to subpoena any correspondence between lobbyists and state legislators containing communications regarding the 2014 amended law.

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Tesla claims it subpoenaed the legislators because of a June 2016 statements to the company that it will “not be allowed to operate in Michigan because Michigan dealers and manufacturers do not want Tesla in the state.”

Legislators fought back with their claim that this subpoena is an attempt by Tesla to harass them for not submitted to Tesla’s demands.

A trial date has not yet been set.

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East Coast reporter for Teslarati. Tips can be sent to pete@teslarati.com

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Elon Musk

Tesla ramps Cybercab test manufacturing ahead of mass production

Tesla still has plans for volume production, which remains between four and eight weeks away, aligning with Musk’s statements that early ramps would be deliberately measured given the Cybercab’s novel architecture and full reliance on Tesla’s vision-based Full Self-Driving technology.

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Credit: Joe Tegtmeyer | X

Tesla is seemingly ramping Cybercab test manufacturing ahead of mass production, which is scheduled to begin next month, the company said.

At Tesla’s Gigafactory Texas, production of the Cybercab, the company’s groundbreaking purpose-built Robotaxi vehicle, is accelerating markedly. Drone footage from Joe Tegtmeyer captured striking aerial footage today, revealing what appears to be the largest public sighting of Cyebrcabs to date.

A total of 25 units were observed by Tegtmeyer across the Gigafactory Texas property, marking a clear step-up in testing and validation activities as Tesla prepares for a broader output.

Tesla Cybercab production begins: The end of car ownership as we know it?

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In the footage, 14 metallic gold Cybercabs were parked in a tight formation outside the factory exit, showcasing their sleek, autonomous-only design with no steering wheels, pedals, or traditional controls. Another 9 units sat at the crash testing facility, likely undergoing structural and safety validations, while two more appeared at the west end-of-line area for final checks.

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Tegtmeyer noted additional Cybercabs driving around the complex, hinting at active movement and real-world testing beyond static parking.

This surge follows the first production Cybercab rolling off the line in mid-February 2026, several weeks ahead of the originally anticipated April start.

That milestone, celebrated by Tesla employees and confirmed by CEO Elon Musk, kicked off low-volume builds on the dedicated “unboxed” manufacturing line, a modular process designed to slash costs, reduce factory footprint, and enable faster assembly compared to conventional methods.

Industry observers interpret the jump to dozens of visible units in early March as evidence that Tesla has transitioned into higher-volume test manufacturing.

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Tesla still has plans for volume production, which remains between four and eight weeks away, aligning with Musk’s statements that early ramps would be deliberately measured given the Cybercab’s novel architecture and full reliance on Tesla’s vision-based Full Self-Driving technology.

The Cybercab, envisioned as a sub-$30,000 autonomous two-seater for robotaxi fleets, represents Tesla’s bold pivot toward scalable autonomy and robotics.

Tesla fans and enthusiasts on X praised the imagery, with many expressing excitement over the visible progress toward deployment. While challenges remain, including software maturity, regulatory hurdles, and supply chain scaling, the increased factory activity underscores Tesla’s momentum in turning the Cybercab vision into reality.

As Giga Texas continues expanding and refining the manufacturing process of the Cybercab, the coming months will prove to be a pivotal time in determining how quickly this revolutionary vehicle reaches roads in the U.S. and internationally.

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SpaceX to launch Starlink V2 satellites on Starship starting 2027

The update was shared by SpaceX President Gwynne Shotwell and Starlink Vice President Mike Nicolls.

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Credit: SpaceX

SpaceX is looking to start launching its next-generation Starlink V2 satellites in mid-2027 using Starship.

The update was shared by SpaceX President Gwynne Shotwell and Starlink Vice President Mike Nicolls during remarks at Mobile World Congress (MWC) in Barcelona, Spain.

“With Starship, we’ll be able to deploy the constellation very quickly,” Nicolls stated. “Our goal is to deploy a constellation capable of providing global and contiguous coverage within six months, and that’s roughly 1,200 satellites.”

Nicolls added that once Starship is operational, it will be capable of launching approximately 50 of the larger, more powerful Starlink satellites at a time, as noted in a Bloomberg News report.

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The initial deployment of roughly 1,200 next-generation satellites is intended to establish global and contiguous coverage. After that phase, SpaceX plans to continue expanding the system to reach “truly global coverage, including the polar regions,” Nicolls said.

Currently, all Starlink satellites are launched on SpaceX’s Falcon 9 rocket. The next-generation fleet will rely on Starship, which remains in development following a series of test flights in 2025. SpaceX is targeting its next Starship test flight, featuring an upgraded version of the rocket, as soon as this month.

Starlink is currently the largest satellite network in orbit, with nearly 10,000 satellites deployed. Bloomberg Intelligence estimates the business could generate approximately $9 billion in revenue for SpaceX in 2026.

Nicolls also confirmed that SpaceX is rebranding its direct-to-cell service as Starlink Mobile.

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The service currently operates with 650 satellites capable of connecting directly to smartphones and has approximately 10 million monthly active users. SpaceX expects that figure to exceed 25 million monthly active users by the end of 2026.

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Elon Musk’s xAI and X to pay off $17.5B debt in full: report

The update was shared initially in a report from Bloomberg News, which cited people reportedly familiar with the matter.

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Credit: xAI

Elon Musk’s social platform X and artificial intelligence startup xAI are reportedly preparing to repay approximately $17.5 billion in outstanding debt in full. 

The update was shared initially in a report from Bloomberg News, which cited people reportedly familiar with the matter.

Morgan Stanley, which arranged the debt financing for both companies, has reportedly informed existing lenders that X and xAI plan to pay back the full amount of the $17.5 billion debt. Bloomberg’s sources did not disclose where the capital for the repayment would be coming from.

X, formerly known as Twitter, assumed roughly $12.5 billion in debt during Musk’s acquisition of the company. xAI separately borrowed about $5 billion through bonds and loans last June. The two firms merged last year under xAI Holdings.

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Bloomberg noted that portions of the debt are relatively recent and may carry early repayment penalties. xAI’s $3 billion in high-yield bonds are expected to be redeemed at 117 cents on the dollar, reflecting a premium since the debt was expected to stay outstanding for at least two years.

X has been servicing tens of millions of dollars in monthly debt payments, while xAI has reportedly been burning approximately $1 billion in cash per month as it invests heavily in data centers, chips, and AI talent. That being said, xAI also concluded a funding round in January, where it raised $20 billion of new equity.

The repayment plans come as Musk consolidates several of his businesses. SpaceX recently acquired xAI, making it a subsidiary as the company explores plans for space-based data centers. The combined entity has been valued at approximately $1.25 trillion.

Bloomberg previously reported that SpaceX is targeting a confidential IPO filing as soon as this month, potentially positioning the private space firm for a public listing later this year. Representatives for Morgan Stanley declined to comment, and X and xAI did not immediately respond to requests for comment.

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