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Tesla subpoena hearing update: Claims of corruption in Michigan

[Photo credit: Electric Jen]

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Assistant Attorney General Rock Wood, who represented the legislators, told Judge Ellen Carmody Thursday that courts generally only lift the veil of internal communications for criminal cases and for civil cases involving voting rights and redistricting, as reported by the Detroit Free Press.

“There would be no reason to make an exception for the Tesla lawsuit,” Wood said.

Wood went on to say that if Carmody allows access to lawmakers’ records in such a case, there will be a raft of lawsuits aimed at harassing and intimidating lawmakers to the extent that “legislators are spending all their time on this, and can’t legislate,” Wood said.

Tesla attorney John Bursch, a former state solicitor general, said there’s no privilege for communications between lawmakers and third parties, such as lobbyists.

And because the case is about potential economic discrimination that harms consumers and violates the commerce clause of the U.S. Constitution, communications among lawmakers and between lawmakers and their staff members are also subject to subpoena, Bursch told the court.

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The electric automaker had subpoenaed records from Governor Rick Snyder, Senator Joe Hune and Representative Jason Sheppard and others in its federal lawsuit against Snyder.

Tesla especially zeroed in on Senator Hune, who has received contributions from the Michigan Automobile Dealers Association. According to the Detroit Free Press, Tesla attorney John Bursch said in court Thursday that Hune was subpoenaed because he introduced the last minute amendment that effectively created the Anti-Tesla law and that his wife, Marcia, “works for the auto dealers” as a registered lobbyist employed by a firm that has the Auto Dealers of Michigan as a client.

The Hunes had not responded to Detroit Free Press’s request for comment and Sheppard declined a comment through a spokeswoman.

The subpoena also included Representative Sheppard, who wasn’t in office at the time. His inclusion comes from his statement to a Tesla representative that Michigan auto dealers and manufacturers don’t want Tesla in Michigan, “so you’re not going to be here,” as recounted by Bursch.

The subpoena hearing stems from a lawsuit against Snyder, Michigan’s Secretary of State Ruth Johnson and state Attorney General Bill Schuette over a 2014 state law that has colloquially become known as the Anti-Tesla bill. The law bans automakers from selling vehicles directly to consumers, which is Tesla’s sales model.

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Tesla’s complaint outlines that the law’s purpose is “to reward the dealers’ generous lobbying efforts by handing them a monopoly,” as we previously reported.

Tesla is seeking two things from the lawsuit: a declaratory judgment that Michigan’s ban on direct-sales violates the Due Process, Equal Protection, and Commerce Clauses of the Constitution as applied to Tesla and a permanent injunction preventing state officials from enforcing the law, including the October 2014 amendment.

Interim East Coast Editor for Teslarati, contributor for NextMobility. Share tips at mdolzer@teslarati.com

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Tesla’s Supercharger Diner probably just secured more locations

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tesla diner
Credit: Tesla

Tesla’s Supercharger Diner in Los Angeles dominated the company’s global usage rankings after just one year, proving the concept is more than just a one-off novelty location that will fade away.

The performance could incite the company to build more locations, something that CEO Elon Musk has hinted at for some time.

Tesla’s Supercharger Diner delivered 21.2 GWh of energy in its first year of operation, the company’s head of Charging, Max de Zegher, revealed on X. Of the top 10 most utilized Supercharger locations in Tesla’s global infrastructure, the Diner in Los Angeles was the most used by drivers, and it wasn’t particularly close:

On its launch day one year ago, nobody was too sure what the Tesla Diner would be about. It seemed like an interesting concept, and considering it had been in the works for years, it was a highly anticipated launch that many were looking forward to.

Based on its success, we could see additional Diners with Superchargers built throughout the United States, and potentially beyond. Musk has said on several occasions that the company would be willing to bring the Diner idea to more markets.

Tesla makes major change at Supercharger Diner amid epic demand

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Of the markets that Musk has mentioned, both Palo Alto and Austin have come to be perceived as ideal selections. However, there are no concrete plans as of now to build new Supercharger Diners anywhere; the location on Santa Monica Boulevard will remain the exclusive spot to pick up Tesla-inspired eats, at least for the time being.

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Tesla short sellers win big after shares fall after earnings

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A red Tesla Roadster driving around a turn
(Credit: Tesla)

Tesla short sellers won big following the company’s massive fall on Wall Street after it reported subpar Earnings on Wednesday.

Tesla short sellers collected about $4.12 billion in single-day profits on Thursday, according to BloombergShares fell as much as 15 percent during Thursday’s session. It closed as one of the worst days for Tesla on Wall Street in the past three years.

Investors sold off the stock after Tesla said it would aggressively direct its spending toward AI and its Optimus robot project. The company had record revenues, which were driven by one of the strongest quarters in terms of vehicle deliveries in company history.

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However, it missed EPS estimates by reporting just $0.33, a far cry from the $0.53 analysts expected.

S3 Partners reported that about 3 percent of Tesla’s outstanding stock is sold short. Managing Director at S3, Ihor Dusaniwsky, provided the short seller’s potential profit, as well as another figure: shorts have likely had paper gains of $8.92 billion this year, as Tesla shares are down 30 percent in 2026.

Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue

Tesla has burned short sellers many times in the past, but the company’s latest Earnings Call was a chance for those skeptics to taste some payback. Although the company gave some very transparent information regarding future projects, the rollout of Robotaxi, Optimus, and Semi, many investors took their profits on Thursday.

Notable short sellers like Michael Burry have been transparent about their skepticism around Tesla shares. Burry just revealed three weeks ago that he had opened up a new short on the stock, stating he shorted Tesla shares at $416.22. “Happy it jumped back to this level,” he said in a blog post.

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At the time of publication, Tesla shares were down about 3 percent and the stock was trading at $309.92.

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Tesla door handle saga gets its latest chapter and a big change is coming

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Credit: Tesla | Model 3 Owner's Manual

Tesla’s long-standing saga regarding its door handles and a manual release has entered its latest chapter, and as a result, a big change is coming.

On Friday, the National Highway Traffic Safety Administration (NHTSA) denied Tesla’s petition that was seeking a defect investigation into roughly 180,000 Model 3 vehicles for an issue involving the emergency mechanical door release.

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NHTSA said that Tesla’s petition did not present evidence of a safety-related defect in the door handles or their emergency releases. Instead, the agency determined that it would rather solve the issue of the lack of labeling or location of emergency mechanical door releases and the federal safety rules that govern them.

Essentially, the NHTSA wants to create and enforce rules that would require automakers to make emergency door latch releases more clearly labeled in a car. Despite a Tesla having manual door releases on all four passenger doors, many people do not know they exist or how they work.

Tesla addresses door handle complaints with simple engineering fix

In recent times, Tesla has faced some criticism involving its door handles, specifically because some occupants have reported that they are unable to exit their vehicles after losing power. The door handles on a Tesla are electronically operated, but in the event that the 12V battery dies, there is a manual release that can be used.

The NHTSA only identified a single complaint involving the mechanical door releases: a 2022 Model 3 owner said the release was concealed and unlabeled after the vehicle lost power after a front-end collision. It has also already started to create a separate rulemaking process to make emergency door-egress systems more obvious.

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It should be noted that all Teslas have mechanical emergency door releases, but they are placed in various locations as the vehicles have aged and been redesigned from year to year. Refer to the safety manual for your vehicle if you have any confusion about where the emergency releases are and how they work.

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