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

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

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

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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

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“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.”

“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. 

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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.

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

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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.

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Tesla adds awesome new driving feature to Model Y

Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.

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Credit: Tesla

Tesla is adding an awesome new driving feature to Model Y vehicles, effective on Juniper-updated models considered model year 2026 or newer.

Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.

Tesla writes in the release notes for the feature:

“Your Tesla now provides a smoother feel as you come to a complete stop during routine braking.”

Interestingly, we’re not too sure what catalyzed Tesla to try to improve braking smoothness, because it hasn’t seemed overly abrupt or rough from my perspective. Although the brake pedal in my Model Y is rarely used due to Regenerative Braking, it seems Tesla wanted to try to make the ride comfort even smoother for owners.

There is always room for improvement, though, and it seems that there is a way to make braking smoother for passengers while the vehicle is coming to a stop.

This is far from the first time Tesla has attempted to improve its ride comfort through Over-the-Air updates, as it has rolled out updates to improve regenerative braking performance, handling while using Full Self-Driving, improvements to Steer-by-Wire to Cybertruck, and even recent releases that have combatted Active Road Noise.

Tesla set to activate long-awaited Cybertruck feature

Tesla holds a unique ability to change the functionality of its vehicles through software updates, which have come in handy for many things, including remedying certain recalls and shipping new features to the Full Self-Driving suite.

Tesla seems to have the most seamless OTA processes, as many automakers have the ability to ship improvements through a simple software update.

We’re really excited to test the update, so when we get an opportunity to try out Comfort Braking when it makes it to our Model Y.

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Tesla finally brings a Robotaxi update that Android users will love

The breakdown of the software version shows that Tesla is actively developing an Android-compatible version of the Robotaxi app, and the company is developing Live Activities for Android.

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Credit: Grok

Tesla is finally bringing an update of its Robotaxi platform that Android users will love — mostly because it seems like they will finally be able to use the ride-hailing platform that the company has had active since last June.

Based on a decompile of software version 26.2.0 of the Robotaxi app, Tesla looks to be ready to roll out access to Android users.

According to the breakdown, performed by Tesla App Updates, the company is preparing to roll out an Android version of the app as it is developing several features for that operating system.

The breakdown of the software version shows that Tesla is actively developing an Android-compatible version of the Robotaxi app, and the company is developing Live Activities for Android:

“Strings like notification_channel_robotaxid_trip_name and android_native_alicorn_eta_text show exactly how Tesla plans to replicate the iOS Live Activities experience. Instead of standard push alerts, Android users are getting a persistent, dynamically updating notification channel.”

This is a big step forward for several reasons. From a face-value perspective, Tesla is finally ready to offer Robotaxi to Android users.

The company has routinely prioritized Apple releases because there is a higher concentration of iPhone users in its ownership base. Additionally, the development process for Apple is simply less laborious.

Tesla is working to increase Android capabilities in its vehicles

Secondly, the Robotaxi rollout has been a typical example of “slowly then all at once.”

Tesla initially released Robotaxi access to a handful of media members and influencers. Eventually, it was expanded to more users, so that anyone using an iOS device could download the app and hail a semi-autonomous ride in Austin or the Bay Area.

Opening up the user base to Android users may show that Tesla is preparing to allow even more users to utilize its Robotaxi platform, and although it seems to be a few months away from only offering fully autonomous rides to anyone with app access, the expansion of the user base to an entirely different user base definitely seems like its a step in the right direction.

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Lucid unveils Lunar Robotaxi in bid to challenge Tesla’s Cybercab in the autonomous ride hailing race

Lucid’s Lunar robotaxi is gunning for Tesla’s Cybercab in the autonomous ride hailing race

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Lucid Lunar robotaxi concept [Credit: Rendering by TESLARATI]

Lucid Group pulled back the curtain on its purpose-built autonomous robotaxi platform dubbed the Lunar Concept. Announced at its New York investor day event, Lunar is arguably the company’s most ambitious concept yet, and a direct line of sight toward the autonomous ride haling market that Tesla looks to control.

At Lucid Investor Day 2026, the company introduced Lunar, a purpose-built robotaxi concept based on the Midsize platform.

A comparison to Tesla’s Cybercab is unavoidable. The concept of a Tesla robotaxi was first introduced by Elon Musk back in April 2019 during an event dubbed “Autonomy Day,” where he envisioned a network of self-driving Tesla vehicles transporting passengers while not in use by their owners. That vision took another major step in October 2024 when, Musk unveiled the Cybercab at the Tesla “We, Robot” event held at Warner Bros. Studios in Burbank, California, where 20 concept Cybercabs autonomously drove around the studio lot giving rides to attendees.

Tesla unveils the Robovan at ‘We, Robot’ event

Fast forward to today, and Tesla’s ambitions are finally materializing, but not without friction. As we recently reported, the Cybercab is being spotted with increasing frequency on public roads and across the grounds of Gigafactory Texas, suggesting that the company’s road testing and validation program is ramping meaningfully ahead of mass production. Tesla already operates a small scale robotaxi service in Austin using supervised Model Ys, but the Cybercab is designed from the ground up for high-volume, low-cost production, with Musk stating an eventual goal of producing one vehicle every 10 seconds.

At Lucid Investor Day 2026, the company introduced Lunar, a purpose-built robotaxi concept based on the Midsize platform.

Into this landscape steps Lucid’s Lunar. Built on the company’s all-new Midsize EV platform, which will also underpin consumer SUVs starting below $50,000. The Lunar mirrors the Cybercab’s core philosophy of having two seats, no driver controls, and a focus on fleet economics. The platform introduces Lucid’s redesigned Atlas electric drive unit, engineered to be smaller, lighter, and cheaper to manufacture at scale.

Unlike Tesla’s strategy of building its own ride hailing network from scratch, Lucid is partnering with Uber. The companies are said to be in advanced discussions to deploy Midsize platform vehicles at large scale, with Uber CEO Dara Khosrowshahi publicly backing Lucid’s engineering credentials and autonomous-ready architecture.

In the investor day event, Lucid also outlined a recurring software revenue model, with an in-vehicle AI assistant and monthly autonomous driving subscriptions priced between $69 and $199. This can be seen as a nod to the software revenue stream that Tesla has long championed with its Full Self-Driving subscription.

Tesla’s Cybercab is targeting a price point below $30k and with operating costs as low as 20 cents per mile. But with regulatory hurdles still ahead, the window for competition is open. Lucid’s Lunar may not have a launch date yet, but it arrives at a pivotal moment, and when the robotaxi race is no longer viewed as hypothetical. Rather, every serious EV player needs to come to bat on the same plate that Tesla has had countless practice swings on over the last seven years.

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