Connect with us

News

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

Tesla Service Center. | Image: Tesla

Published

on

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

Advertisement

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.

Advertisement

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.”

Advertisement

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

Advertisement
Comments

Energy

Tesla Energy gains UK license to sell electricity to homes and businesses

The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.

Published

on

Credit: Tesla Energy/X

Tesla Energy has received a license to supply electricity in the United Kingdom, opening the door for the company to serve homes and businesses in the country.

The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.

According to Ofgem, the license took effect at 6 p.m. local time on Wednesday and applies to Great Britain.

The approval allows Tesla’s energy business to sell electricity directly to customers in the region, as noted in a Bloomberg News report.

Advertisement

Tesla has already expanded similar services in the United States. In Texas, the company offers electricity plans that allow Tesla owners to charge their vehicles at a lower cost while also feeding excess electricity back into the grid.

Tesla already has a sizable presence in the UK market. According to price comparison website U-switch, there are more than 250,000 Tesla electric vehicles in the country and thousands of Tesla home energy storage systems.

Ofgem also noted that Tesla Motors Ltd., a separate entity incorporated in England and Wales, received an electricity generation license in June 2020.

The new UK license arrives as Tesla continues expanding its global energy business.

Advertisement

Last year, Tesla Energy retained the top position in the global battery energy storage system (BESS) integrator market for the second consecutive year. According to Wood Mackenzie’s latest rankings, Tesla held about 15% of global market share in 2024.

The company also maintained a dominant position in North America, where it captured roughly 39% market share in the region.

At the same time, competition in the energy storage sector is increasing. Chinese companies such as Sungrow have been expanding their presence globally, particularly in Europe.

Advertisement
Continue Reading

Elon Musk

Elon Musk shares big Tesla Optimus 3 production update

According to Musk, Tesla is in the final stages of completing Optimus 3, which he described as one of the world’s most advanced humanoid robots.

Published

on

Credit: Tesla China

Tesla CEO Elon Musk has stated that production of Optimus 3 could begin this summer. Musk shared the update in his interview at the Abundance Summit.

According to Musk, Tesla is in the final stages of completing Optimus 3, which he described as one of the world’s most advanced humanoid robots.

“We’re in the final stages of completion of Optimus 3, which is really going to be by far the most advanced robot in the world. Nothing’s even close. In fact, I haven’t even seen demos of robots that are as good as Optimus 3,” Musk said.

He also set expectations on the pace of Optimus 3’s production ramp, stating that the initial volumes of the humanoid robot will likely be very low. Musk did, however, also state that high production rates for Optimus 3 should be possible in 2027. 

Advertisement

“I think we’ll start production on Optimus 3 this summer, but very slow at first, like sort of this classic S-curve ramp of manufacturing units versus time. And then, probably reach high volume production around summer next year,” he said.

Interestingly enough, the CEO hinted that Tesla is looking to iterate on the robot quickly, potentially releasing a new Optimus design every year.

“We’ll have Optimus 4 design complete next year. We’ll try to release a new robot design every year,” Musk stated.

Tesla has already outlined broader plans for scaling Optimus production beyond its first manufacturing line. Musk previously stated that Optimus 4 will be built at Gigafactory Texas at significantly higher production volumes.

Advertisement

Initial production lines for the robot are expected to be located at Tesla’s Fremont Factory, where the company plans to establish a line capable of producing up to 1 million robots per year.

A larger production ramp is expected to occur at Gigafactory Texas, where Musk has previously suggested could eventually support production of up to 10 million robots per year.

“We’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk said previously.

The comments suggest that while Optimus 3 will likely begin production at Fremont, Tesla’s larger-scale manufacturing push could arrive with Optimus 4 at Gigafactory Texas.

Advertisement
Continue Reading

Elon Musk

Tesla showcases Optimus humanoid robot at AWE 2026 in Shanghai

Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show.

Published

on

Credit: Tesla/YouTube

Tesla showcased its Optimus humanoid robot at the 2026 Appliance & Electronics World Expo (AWE 2026) in Shanghai. The event opened Thursday and featured several Tesla products, including the company’s humanoid robot and the Cybertruck.

The display was reported by CNEV Post, citing information from local media outlet Cailian and on-site staff at the exhibition.

Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show. On-site staff reportedly stated that mass production of the robot could begin by the end of 2026.

Tesla previously indicated that it plans to manufacture its humanoid robots at scale once production begins, with its initial production line in the Fremont Factory reaching up to 1 million units annually. An Optimus production line at Gigafactory Texas is expected to produce 10 million units per year. 

Advertisement

Tesla China previously shared a teaser image on Weibo showing a pair of highly detailed robotic hands believed to belong to Optimus. The image suggests a design with finger proportions and structures that closely resemble those of a human hand.

Robotic hands are widely considered one of the most difficult engineering challenges in humanoid robotics. For a system like Optimus to perform complex real-world tasks, from factory work to household activities, the robot would require highly advanced dexterity.

Elon Musk has previously stated that Optimus has the capability to eventually become the first real-world example of a Von Neumann machine, a self-replicating system capable of building copies of itself, even on other planets. “Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.

Advertisement
Continue Reading