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Tesla faces sneaky House Bill reversal in Michigan in fight over sales and service

Tesla Service Center. | Image: Tesla

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Tesla-friendly provisions in Michigan House Bill 6233 that would have allowed the electric automaker to perform direct sales and own service centers were removed just before State Lawmakers passed the bill 65-39.

Language that would have allowed Tesla to finally operate within the state of Michigan was struck from bill 6233, effectively ending any possibility that Tesla could sell its cars or build service facilities in the state in the short-term. It was removed in an amendment approved by the State House on Wednesday evening shortly before the chamber cast its votes.

In January, Tesla came to a long-fought agreement with lawmakers, including the state’s Attorney General and Secretary of State, that ended a ban on company-owned stores and stopped Tesla from opening its Service Centers. Prior to the agreement, Tesla owners in Michigan were forced to purchase their vehicles out of state by finalizing the sale on paper. Additionally, if their all-electric vehicle needed servicing or repairs, they were forced to drive out of state to nearby locations in Illinois and Ohio.

Tesla’s win in Michigan marks a point of no return for traditional auto

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The agreement led to the provisions being added to Michigan House Bill 6233, and also a dropped lawsuit from Tesla against the state. However, the language was struck out with no explanation, The Detroit News reported.

The legislation will still have to go through the Senate and will require the Signature of the Governor of Michigan, Gretchen Whitmer.

The only exceptions to the Bill are that a facility to repair manufacturer-owned cars or fleet vehicles are allowed.

The issue dates back to 2016 when Tesla challenged the State’s ban on Direct-to-Consumer Sales, which requires consumers to buy vehicles through a dealership franchise. Detroit’s historical dominance in the automotive sector through companies like Ford and GM would benefit from the ban, considering the initial ban on Direct-to-Consumer sales was introduced in October 2014 to “clarify and strengthen” an existing statute that prohibited direct sales of new cars to protect large dealers.

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The January agreement would have allowed a subsidiary of the electric automaker, called Tesla Michigan, to operate and own service and repair facilities in the state. It would have been largely beneficial for owners who live in Michigan, and it would have allowed Tesla to sell vehicles in the heart of American automotive manufacturing.

Christine Grieg, House Minority Leader and a Democrat from Farmington Hills, attempted to offer a substitute to House Bill 6233 on Wednesday that was adopted before a second vote removed it. She believes the removal opens up the door for more legal conflict between Tesla and Michigan, ultimately leading to a loss of taxpayer dollars.

“It does not solve the problem that we have with the lawsuit with Tesla,” she said. “It opens up the state to additional litigation, which costs taxpayer dollars. And it also is a very anti-market approach to vehicle sales.”

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Tesla Megapack powers $1.1B AI data center project in Brazil

By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.

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Credit: Tesla

Tesla’s Megapack battery systems will be deployed as part of a 400MW AI data center campus in Uberlândia, Brazil. The initiative is described as one of Latin America’s largest AI infrastructure projects.

The project is being led by RT-One, which confirmed that the facility will integrate Tesla Megapack battery energy storage systems (BESS) as part of a broader industrial alliance that includes Hitachi Energy, Siemens, ABB, HIMOINSA, and Schneider Electric. The project is backed by more than R$6 billion (approximately $1.1 billion) in private capital.

According to RT-One, the data center is designed to operate on 100% renewable energy while also reinforcing regional grid stability.

“Brazil generates abundant energy, particularly from renewable sources such as solar and wind. However, high renewable penetration can create grid stability challenges,” RT-One President Fernando Palamone noted in a post on LinkedIn. “Managing this imbalance is one of the country’s growing infrastructure priorities.”

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By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.

“The facility will be capable of absorbing excess electricity when supply is high and providing stabilization services when the grid requires additional support. This approach enhances resilience, improves reliability, and contributes to a more efficient use of renewable generation,” Palamone added.

The model mirrors approaches used in energy-intensive regions such as California and Texas, where large battery systems help manage fluctuations tied to renewable energy generation.

The RT-One President recently visited Tesla’s Megafactory in Lathrop, California, where Megapacks are produced, as part of establishing the partnership. He thanked the Tesla team, including Marcel Dall Pai, Nicholas Reale, and Sean Jones, for supporting the collaboration in his LinkedIn post.

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Starlink powers Europe’s first satellite-to-phone service with O2 partnership

The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools.

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Credit: SpaceX

Starlink is now powering Europe’s first commercial satellite-to-smartphone service, as Virgin Media O2 launches a space-based mobile data offering across the UK.

The new O2 Satellite service uses Starlink’s low-Earth orbit network to connect regular smartphones in areas without terrestrial coverage, expanding O2’s reach from 89% to 95% of Britain’s landmass.

Under the rollout, compatible Samsung devices automatically connect to Starlink satellites when users move beyond traditional mobile coverage, according to Reuters.

The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools. O2 is pricing the add-on at £3 per month.

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By leveraging Starlink’s satellite infrastructure, O2 can deliver connectivity in remote and rural regions without building additional ground towers. The move represents another step in Starlink’s push beyond fixed broadband and into direct-to-device mobile services.

Virgin Media O2 chief executive Lutz Schuler shared his thoughts about the Starlink partnership. “By launching O2 Satellite, we’ve become the first operator in Europe to launch a space-based mobile data service that, overnight, has brought new mobile coverage to an area around two-thirds the size of Wales for the first time,” he said.

Satellite-based mobile connectivity is gaining traction globally. In the U.S., T-Mobile has launched a similar satellite-to-cell offering. Meanwhile, Vodafone has conducted satellite video call tests through its partnership with AST SpaceMobile last year.

For Starlink, the O2 agreement highlights how its network is increasingly being integrated into national telecom systems, enabling standard smartphones to connect directly to satellites without specialized hardware.

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Elon Musk’s Starbase, TX included in $84.6 million coastal funding round

The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.

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Credit: SpaceX/X

Elon Musk’s Starbase, Texas has been included in an $84.6 million coastal funding round announced by the Texas General Land Office (GLO). The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.

Texas Land Commissioner Dawn Buckingham confirmed that 14 coastal counties will receive funding through the Coastal Management Program (CMP) Grant Cycle 31 and Coastal Erosion Planning and Response Act (CEPRA) program Cycle 14. Among the Brownsville-area recipients listed was the City of Starbase, which is home to SpaceX’s Starship factory.

“As someone who spent more than a decade living on the Texas coast, ensuring our communities, wildlife, and their habitats are safe and thriving is of utmost importance. I am honored to bring this much-needed funding to our coastal communities for these beneficial projects,” Commissioner Buckingham said in a press release

“By dedicating this crucial assistance to these impactful projects, the GLO is ensuring our Texas coast will continue to thrive and remain resilient for generations to come.”

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The official Starbase account acknowledged the support in a post on X, writing: “Coastal resilience takes teamwork. We appreciate @TXGLO and Commissioner Dawn Buckingham for their continued support of beach restoration projects in Starbase.”

The funding will support a range of coastal initiatives, including beach nourishment, dune restoration, shoreline stabilization, habitat restoration, and water quality improvements.

CMP projects are backed by funding from the National Oceanic and Atmospheric Administration and the Gulf of Mexico Energy Security Act, alongside local partner matches. CEPRA projects focus specifically on reducing coastal erosion and are funded through allocations from the Texas Legislature, the Texas Hotel Occupancy Tax, and GOMESA.

Checks were presented in Corpus Christi and Brownsville to counties, municipalities, universities, and conservation groups. In addition to Starbase, Brownsville-area recipients included Cameron County, the City of South Padre Island, Willacy County, and the Willacy County Navigation District.

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