Connect with us
Tesla showroom in Century City mall, Los Angeles (Credit: Teslarati) Tesla showroom in Century City mall, Los Angeles (Credit: Teslarati)

News

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

Tesla showroom in Century City mall, Los Angeles (Credit: Teslarati)

Published

on

After resisting Tesla for years, the heart of American auto, Michigan, finally allowed the electric car maker to establish a foothold in the state. It was a hard-fought battle for Tesla, and a victory well worth more than CEO Elon Musk’s one-word celebration on Twitter. But at the same time, Tesla’s settlement with Michigan, which would allow the company to sell and service its cars in the state, marks a point of no return for traditional auto. 

It may not be evident now, but from this point on, it will be twice as difficult for states to resist disruptive new EV makers that do not follow a traditional dealership sales model. This means that even other carmakers such as Rivian will likely have a clear path forward in their expansion into the United States’ auto market, absent of the direct sales roadblocks that the Elon Musk-led company has dealt with for years. 

Michigan is considered the heart of the US auto industry, and for good reason. The country’s motoring history was written within the state’s borders, and iconic companies that changed the industry, such as Ford, call Michigan their home. Yet, for all its dedication to the car industry, Michigan has also been very resistant to Tesla, preventing the electric car maker from selling its vehicles in the state due to the company’s direct sales strategy.

Tesla’s difficulties in Michigan were a painful reminder that the company’s goal of transitioning the transportation industry towards sustainability would be marred with difficulties left and right, signified by the state’s dealer franchise laws. This is one of the reasons why the company’s settlement with the state is so important. Daniel Crane, a University of Michigan law professor who specializes in antitrust and regulatory issues, explained these points in an interview with Automotive News

“The handwriting’s on the wall for the franchised dealer as the exclusive way consumers interact with car companies. It’s pretty clear it’d be impossible for the state to deny someone else; it paves the way for any new EV company that doesn’t want to use traditional dealerships.”

Advertisement
-->

“The legacy companies can’t continue forever to use a dealer model from the 1930s. Being required to use only that, I think, is a competitive disadvantage. They’ll have to find a way to get flexibility in their distribution method, or they’ll be left behind,” he said. 

The dealer model deserves some recognition, as the United States’ auto industry would likely not have gotten this far without it. Yet in the age of electrification, dealerships, which are known for their flexible pricing strategies and reliance on regular vehicle maintenance, are starting to become outdated. Tesla is the living representation of this, as the company’s cars are priced like tech devices, and its vehicles require far less maintenance compared to internal combustion cars. 

One key takeaway from Tesla’s conquest and subsequent victory in Michigan is the fact that the electric car maker is only the first of many. The state has allowed the company to sell and service its cars within its borders, and it will be hard-pressed to not do the same for other automakers. Tesla may be leading the charge, after all, but it is not alone. There’s Rivian, which is also planning on adopting a non-dealership sales model, and more are likely coming. By allowing Tesla to sell and service its cars within the state, Michigan has just accelerated the industry’s transition to sustainability. 

Very few may see it now, but through this little settlement with Tesla, the US auto industry may have just passed the proverbial point of no return.

Tesla’s recent settlement with the state of Michigan can be read below.

Advertisement
-->

Tesla-MI-Joint Stipulation and Motion for Entry of Dismissal 1-22-20 679161 7 by Simon Alvarez on Scribd

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

News

Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025.

Published

on

Credit: ANCAP

The Tesla Model Y recorded the highest overall safety score of any vehicle tested by ANCAP in 2025. The Tesla Model 3 also delivered strong results, reinforcing the automaker’s safety leadership in Australia and New Zealand.

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025. ANCAP’s 2025 tests evaluated vehicles across four key pillars: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist technologies.

The Model Y posted consistently strong results in all four categories, distinguishing itself through a system-based safety approach that combines structural crash protection with advanced driver-assistance features such as autonomous emergency braking, lane support, and driver monitoring. 

This marked the second time the Model Y has topped ANCAP’s annual safety rankings. The Model Y’s previous version was also ANCAP’s top performer in 2022.

The Tesla Model 3 also delivered a strong performance in ANCAP’s 2025 tests, contributing to Tesla’s broader safety presence across segments. Similar to the Model Y, the Model 3 also earned impressive scores across the ANCAP’s four pillars. This made the vehicle the top performer in the Medium Car category.  

ANCAP Chief Executive Officer Carla Hoorweg stated that the results highlight a growing industry shift toward integrated safety design, with improvements in technologies such as autonomous emergency braking and lane support translating into meaningful real-world protection.

Advertisement
-->

“ANCAP’s testing continues to reinforce a clear message: the safest vehicles are those designed with safety as a system, not a checklist. The top performers this year delivered consistent results across physical crash protection, crash avoidance and vulnerable road user safety, rather than relying on strength in a single area.

“We are also seeing increasing alignment between ANCAP’s test requirements and the safety technologies that genuinely matter on Australian and New Zealand roads. Improvements in autonomous emergency braking, lane support, and driver monitoring systems are translating into more robust protection,” Hoorweg said.

Continue Reading

News

Tesla Sweden uses Megapack battery to bypass unions’ Supercharger blockade

Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery.

Published

on

Credit: Tesla Charging/X

Tesla Sweden has successfully launched a new Supercharger station despite an ongoing blockade by Swedish unions, using on-site Megapack batteries instead of traditional grid connections. The workaround has allowed the Supercharger to operate without direct access to Sweden’s electricity network, which has been effectively frozen by labor action.

Tesla has experienced notable challenges connecting its new charging stations to Sweden’s power grid due to industrial action led by Seko, a major Swedish trade union, which has blocked all new electrical connections for new Superchargers. On paper, this made the opening of new Supercharger sites almost impossible.

Despite the blockade, Tesla has continued to bring stations online. In Malmö and Södertälje, new Supercharger locations opened after grid operators E.ON and Telge Nät activated the sites. The operators later stated that the connections had been made in error. 

More recently, however, Tesla adopted a different strategy altogether. Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery, as noted in a Dagens Arbete (DA) report. 

Because the Supercharger station does not rely on a permanent grid connection, Tesla was able to bypass the blocked application process, as noted by Swedish car journalist and YouTuber Peter Esse. He noted that the Arlandastad Supercharger is likely dependent on nearby companies to recharge the batteries, likely through private arrangements.

Advertisement
-->

Eight new charging stalls have been launched in the Arlandastad site so far, which is a fraction of the originally planned 40 chargers for the location. Still, the fact that Tesla Sweden was able to work around the unions’ efforts once more is impressive, especially since Superchargers are used even by non-Tesla EVs.

Esse noted that Tesla’s Megapack workaround is not as easily replicated in other locations. Arlandastad is unique because neighboring operators already have access to grid power, making it possible for Tesla to source electricity indirectly. Still, Esse noted that the unions’ blockades have not affected sales as much.

“Many want Tesla to lose sales due to the union blockades. But you have to remember that sales are falling from 2024, when Tesla sold a record number of cars in Sweden. That year, the unions also had blockades against Tesla. So for Tesla as a charging operator, it is devastating. But for Tesla as a car company, it does not matter in terms of sales volumes. People charge their cars where there is an opportunity, usually at home,” Esse noted. 

Advertisement
-->
Continue Reading

Elon Musk

Elon Musk’s X goes down as users report major outage Friday morning

Error messages and stalled loading screens quickly spread across the service, while outage trackers recorded a sharp spike in user reports.

Published

on

Credit: Linda Yaccarino/X

Elon Musk’s X experienced an outage Friday morning, leaving large numbers of users unable to access the social media platform.

Error messages and stalled loading screens quickly spread across the service, while outage trackers recorded a sharp spike in user reports.

Downdetector reports

Users attempting to open X were met with messages such as “Something went wrong. Try reloading,” often followed by an endless spinning icon that prevented access, according to a report from Variety. Downdetector data showed that reports of problems surged rapidly throughout the morning.

As of 10:52 a.m. ET, more than 100,000 users had reported issues with X. The data indicated that 56% of complaints were tied to the mobile app, while 33% were related to the website and roughly 10% cited server connection problems. The disruption appeared to begin around 10:10 a.m. ET, briefly eased around 10:35 a.m., and then returned minutes later.

Credit: Downdetector

Previous disruptions

Friday’s outage was not an isolated incident. X has experienced multiple high-profile service interruptions over the past two years. In November, tens of thousands of users reported widespread errors, including “Internal server error / Error code 500” messages. Cloudflare-related error messages were also reported.

In March 2025, the platform endured several brief outages spanning roughly 45 minutes, with more than 21,000 reports in the U.S. and 10,800 in the U.K., according to Downdetector. Earlier disruptions included an outage in August 2024 and impairments to key platform features in July 2023.

Advertisement
-->
Continue Reading