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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

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.

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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.

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.

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“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.”

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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SpaceX and Elon Musk share insights on Starship Ship 36’s RUD

Starship Ship 36 experienced a Rapid Unscheduled Disassembly during a static fire attempt.

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Elon Musk and SpaceX provided an explanation for the Rapid Unscheduled Disassembly (RUD) of Starship Ship 36 on Wednesday. As per Musk, preliminary data suggests that a nitrogen composite overwrapped pressure vessel (COPV) in the vehicle’s payload bay failed below its proof pressure.

On Wednesday evening, Ship 36 experienced a RUD during a static fire attempt. Videos of the incident that were shared online showed Starship Ship 36 exploding into a massive fireball at its launchpad in Starbase, Texas. Images taken in the aftermath of the explosion showed significant damage to the plumbing in the area. The site’s pad structure was also destroyed.

Elon Musk shared some information immediately after the incident. In a response to a post from space enthusiast @Erdayastronaut, Musk stated that “Preliminary data suggests that a nitrogen COPV in the payload bay failed below its proof pressure.”

Musk also noted that, “If further investigation confirms that this is what happened, it is the first time ever for this design.”

SpaceX provided more insight into the incident in a post on its official website.

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“After completing a single-engine static fire earlier this week, the vehicle was in the process of loading cryogenic propellant for a six-engine static fire when a sudden energetic event resulted in the complete loss of Starship and damage to the immediate area surrounding the stand.

“The explosion ignited several fires at the test site, which remains clear of personnel and will be assessed once it has been determined to be safe to approach. Individuals should not attempt to approach the area while safing operations continue,” SpaceX wrote in its post.

SpaceX highlighted that despite Starship Ship 36’s RUD, the incident will not result in any hazards to the surrounding communities in the Rio Grande Valley. And in a post on X, SpaceX also confirmed that everyone in the Starship team was safe and accounted for after Ship 36’s explosion.

While Ship 36’s RUD is a speed bump for the Starship program, SpaceX is a company that is known to grow stronger with every adversity. Thus, it would not be surprising if SpaceX implemented numerous improvements to Starship after this incident–improvements that would make the vehicle more reliable and safer than before.

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Tesla has started rolling out initial round of Robotaxi invites

Tesla is putting safety above all in its initial Robotaxi rollout.

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Credit: @BLKMDL3/X

Tesla has started rolling out an initial round of invites for its upcoming Robotaxi service in Austin, Texas.

Screenshots shared by several Tesla community members who received the invites provided a quick overview of the autonomous ride-hailing service.

As noted in a techAU report, the initial round of Robotaxi service invites has gone to longtime Tesla owners and active members of the EV community. These include owners such as @SawyerMerritt, @BLKMDL3, @WholeMarsBlog, @ItsKimJava, and @HerbertOng, all of whom shared screenshots of the invitation that Tesla has sent about the upcoming service.

You’re Invited to Early Access of Tesla Robotaxi!

The Future is Now! You’re invited to Early Access of Tesla’s Robotaxi service in Austin, TX!

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As an Early Access rider, you can be among the first to use our new Robotaxi App and experience an autonomous ride within our geofenced area in Austin. Through this exclusive preview, you’ll have the opportunity to provide valuable feedback on our Robotaxi service.

Based on Tesla’s message, it appears that participation in the service would be strictly invite-only for now. Participants must also download Tesla’s dedicated Robotaxi App to hail a ride. Rides can also be requested and initiated to and from any location within a geofenced area of Austin.

The robotaxi service will be available from 6:00 AM to 12:00 AM, seven days a week, though these hours may change depending on factors such as inclement weather. Interestingly enough, Tesla is inviting the first participants of the Robotaxi program to share photos and videos of their experience with the service.

While the vehicles themselves are autonomous and would operate without human input, the Robotaxis would still be accompanied by a Tesla staff member to monitor the vehicle. This strategy suggests that Tesla is really putting safety above all in its initial Robotaxi rollout.

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Texas lawmakers urge Tesla to delay Austin robotaxi launch to September

The letter urges Tesla to delay its initial robotaxi launch in the interest of public safety.

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Credit: @HanChulYong/X

A group of Democratic lawmakers from Austin is asking Tesla to postpone its planned robotaxi rollout, at least until a new state law governing autonomous vehicles takes effect in September.

The letter, which was sent Wednesday, urges Tesla to delay its initial robotaxi launch in the interest of public safety.

What the lawmakers’ letter says

In their letter, the Democratic lawmakers stated that delaying Tesla’s initial robotaxi launch would build trust in the electric vehicle maker’s autonomous vehicle operations.

“We are formally requesting that Tesla delay autonomous robotaxi operations until the new law takes effect on September 1, 2025. We believe this is in the best interest of both public safety and building public trust in Tesla’s operations,” the letter read.

The lawmakers noted that if Tesla wishes to push through with its planned June 22 launch, the company must provide detailed information explaining its robotaxi service’s initial launch.

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New rules kick in September

The new Texas law passed state legislature last month, and it introduces stricter requirements for companies deploying fully self-driving cars. 

Current state law allows autonomous vehicle testing without a human driver, as long as vehicles meet basic registration and insurance standards. The updated framework gives state agencies more oversight, including the ability to revoke permits if autonomous vehicles pose safety risks.

It remains to be seen if the Democratic lawmakers’ efforts will bear fruit, especially since Texas is state where Republicans hold the governorship and majorities in both legislative chambers, as noted in a Reuters report.

Elon Musk, for his part, confirmed that Tesla’s initial robotaxi launch for Austin this June will start with a small fleet of Model Y vehicles. He also noted the service would initially operate only in parts of the city the company deems safest.

Tesla has not issued a comment about the Democratic lawmakers’ letter as of writing.

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