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.
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.
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.
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.
Tesla Cybercab stands to gain from new rules that the Trump Administration is aiming to enforce on autonomous vehicles. On Thursday, NHTSA, under the Trump Administration’s U.S. Department of Transportation, commenced rulemaking on the Federal Motor Vehicle Safety Standards (FMVSS).
This effort aims to eliminate the mandate for manual brake pedals in vehicles that are designed to be driven exclusively by automated driving systems. This would impact the Tesla Cybercab, which the company has stated would operate without a steering wheel or pedals.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
The Trump Administration is looking to revise FMVSS No. 135, which requires standard braking systems on light-duty vehicles.
Currently, the regulation requires light-duty cars to use traditional manual braking systems that allow operators to slow the vehicle. With the advent of self-driving in the U.S., these regulations need updating, and these are the changes that could come to FMVSS No. 135:
- Removes requirements for hand- or foot-operated brake controls for vehicles designed never to be operated by a human. Existing rules still apply to AVs that retain manual controls.
- All subject vehicles must still meet the same stopping distance performance criteria via alternative testing procedures.
- While this update ensures AVs can physically stop when commanded, NHTSA is separately developing safety performance requirements for AVs in real-world driving scenarios.
- NHTSA will continue to use its broad defect enforcement authority to investigate unsafe ADS behavior and oversee recalls.
As autonomy becomes a greater part of passenger travel, these types of rule adjustments will be more than reasonable. It will give manufacturers the ability to self-certify their vehicles and avoid any red tape that could ultimately delay the deployment of these vehicles.
Administrators are also incredibly excited about the opportunity to play a role in the advancement of self-driving vehicles.
“We are at the cusp of the greatest technological revolution in vehicle technology since the innovation of the Model T,” NHTSA Administrator Jonathan Morrison said. “If we want America to lead the way, we have to reimagine our regulatory framework. That’s why under Secretary Sean Duffy’s AV Framework, NHTSA is tearing down pointless barriers to innovative designs while strengthening the fundamental safety requirements that matter and holding AV developers accountable for safe performance.”
The Cybercab entered mass production at Gigafactory Texas in April. Tesla ultimately plans to push the vehicle into its Robotaxi fleet, potentially when frameworks like these are established.
Tesla plans to boost production at its Gigafactory Berlin plant in Germany following a sharp rebound in sales and demand in Europe after a softer 2025.
The plans put Tesla in a better position to compete with strengthening companies in Europe and potentially other markets; demand indicators show Tesla is much better off than in 2025.
Last year was a tough year for Tesla in terms of overall demand in Europe. The company produced over 200,000 vehicles at the German plant last year, a soft figure compared to the 375,000 vehicles Tesla lists as its current capacity at the factory.
🚨 Tesla said this morning it will ramp up production at Gigafactory Berlin to a volume of 7,500 vehicles per week.
This is a 20 percent boost in production. Tesla will hire 1,000 new employees to help with the increase.$TSLA pic.twitter.com/kravKfRO5n
— TESLARATI (@Teslarati) June 25, 2026
Tesla’s overall European sales dropped significantly last year due to a variety of factors. However, sales are rebounding, and demand is strong once again, and only getting stronger. Tesla is now planning to bump production of Model Y vehicles at Giga Berlin upward by about 20 percent. It will also bring 1,000 new jobs to the plant.
Tesla confirmed the details of its planned production expansion in Germany this morning. It is a strategy to keep up with strengthening demand.
In Q1, Tesla saw a record 61,000 vehicles produced at Giga Berlin. European registrations rebounded sharply, with Model Y seeing 117 percent increases in March 2026 compared to last year. Germany alone saw stark increases, with a quadrupling in registrations to 9,252 units.
This trend continued in other key European markets, including France, Denmark and Sweden. Tesla registrations were up over 46 percent in some of these markets, and Model Y continued its trend as a top BEV in the market.
Demand has been recovering strongly in 2026, giving Tesla a reason to expand production efforts at the factory. These increases signal management’s confidence in sustained or growing European pull for Berlin-built vehicles.
Tesla is being sued by the family of the woman who was killed in a Texas crash involving a Model 3. The driver, who is also being sued, claimed the vehicle was operating on Autopilot mode, but Tesla executives have come out challenging that claim, stating that the driver of the vehicle overrode the system.
The lawsuit was filed by 76-year-old Martha Avila’s daughter and her husband, who allege a “design defect” involving a Tesla and a failure to warn. The suit alleges negligence against Tesla and the driver, Michael Butler.
Butler “stated he was operating with an automated driving assistance system engaged at the time of the crash,” the Harris County Sheriff’s Office said in a statement. He showed no signs of intoxication and was cooperative, the Sheriff’s Office said, according to NBC News.
Just after reports of the crash and numerous headlines that immediately blamed Tesla’s Autopilot suite, both Tesla CEO Elon Musk and Head of AI Ashok Elluswamy challenged that. Musk said the crash made “no sense” given that Tesla Autopilot and Full Self-Driving do not travel at the speeds the door cameras captured the car traveling at, which Tesla says was 73 MPH.
Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration
Elluswamy also revealed that Tesla data showed Butler overrode the system by pressing the accelerator to 100%, and that the pedal was compressed fully even after the car had crashed. Tesla has not released this data to the public, likely because it is communicating with agencies like the NHTSA on an investigation.
The suit uses a Washington Post analysis of government data that “identified at least 17 fatal incidents linked to Tesla Autopilot.”
This is far from the first time an accident has been blamed on Autopilot. A fatal crash in Texas was blamed on Autopilot several years ago, but when Tesla released data to the NTSB, which was investigating the crash, Autopilot was not available where the crash occurred, and Autosteer was never enabled, meaning the car was manually controlled at the time of the accident.
“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws… pic.twitter.com/XGD97NHVZ2
— TESLARATI (@Teslarati) March 18, 2026
More information on the accident will be released as Tesla works with agencies to find the cause of the crash. From personal experience, it is hard to imagine Tesla Autopilot or FSD operating in this manner. It drives sometimes too cautiously in residential areas in parking lots, at least in my experience. Speeding happens, but at this rate in this type of area, it is hard to believe.
We look forward to more details being released with time.
Tesla Cybercab stands to gain from new Trump autonomy rules
Tesla plans production boost at Giga Berlin following rebound in Europe
