Connect with us
Anti-Tesla law Anti-Tesla law

News

Tesla subpoenas Michigan governor and others’ records for ‘Anti-Tesla’ law

Published

on

Tesla is going toe-to-toe with the state of Michigan over the state’s “Anti-Tesla” bill, now law, that prevents the company from selling directly to car buyers in the state.

The electric automaker has subpoenaed records from Governor Rick Snyder, Senator Joe Hune and Representative Jason Sheppard and others in its federal lawsuit against Snyder. The lawsuit is also against Michigan’s Secretary of State Ruth Johnson and Attorney General Bill Schuette.

According to news outlet mlive.com, Tesla wants records ranging from internal communications to phone logs regarding the bill from Hune, who has received contributions from the Michigan Automobile Dealers Association. The lawsuit also alleges that Hune’s wife’s firm lobbies for auto dealers, creating a conflict of interest.

The lawsuit dates back to an October 2014 Michigan state law which bans automakers from selling vehicles directly to consumers. The Michigan legislature, backed by the state’s new-car dealership lobby, voted in favor of the amendment. 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.

Advertisement
-->

Assistant Attorney General Rock Wood called the subpoena “burdensome,” and in a footnote said, “It may come as no surprise that Plaintiff [Tesla] is apparently hostile to or comments unfavorably towards certain legislators, given the claims pled by the Plaintiff. This type of fishing expedition, if permitted, would set a dangerous precedent whereby a legislator’s opponents/adversaries could use or manipulate the judicial process to embarrass, harass, distract or undermine legislators or the legislature.”

Assistant Attorney General Matthew Payok said Tesla acknowledges the lawsuit is essentially against the state and he wrote that “the fatal flaw in this position is that the Eleventh Amendment bars all suits against states in federal court, regardless of the relief requested,” according to mlive.com.

As for Tesla, they had the following statement via attorney John Bursch.

“Tesla is entitled to documents that evidence the intent and coordination that took place behind the scenes while the Legislature effectively gave franchised dealers a state-sponsored monopoly on car sales within Michigan – all while engineering the legislative process to steadfastly remove any public attention or scrutiny.”

This comes after yesterday’s news that Louisiana signed a bill into law blocking direct-to consumer sales in their state. No word yet on if Tesla will challenge that law in court.

Advertisement
-->

The hearing for the Michigan subpoenas is set for a week from today, June 15, in Grand Rapids, Michigan.

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

Advertisement
Comments

News

Tesla Insurance officially expands to new U.S. state

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

Published

on

Credit: Tesla Insurance

Tesla Insurance has officially expanded to a new U.S. state, its thirteenth since its launch in 2019.

Tesla has confirmed that its in-house Insurance program has officially made its way to Florida, just two months after the company filed to update its Private Passenger Auto program in the state. It had tried to offer its insurance program to drivers in the state back in 2022, but its launch did not happen.

Instead, Tesla refiled the paperwork back in mid-October, which essentially was the move toward initiating the offering this month.

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

It has expanded to new states since 2019, but Florida presents a particularly interesting challenge for Tesla, as the company’s entry into the state is particularly noteworthy given its unique insurance landscape, characterized by high premiums due to frequent natural disasters, dense traffic, and a no-fault system.

Tesla partners with Lemonade for new insurance program

Advertisement
-->

Annual average premiums for Florida drivers hover around $4,000 per year, well above the national average. Tesla’s insurance program could disrupt this, especially for EV enthusiasts. The state’s growing EV adoption, fueled by incentives and infrastructure development, aligns perfectly with Tesla’s ecosystem.

Moreover, there are more ways to have cars repaired, and features like comprehensive coverage for battery damage and roadside assistance tailored to EVs address those common painpoints that owners have.

However, there are some challenges that still remain. Florida’s susceptibility to hurricanes raises questions about how Tesla will handle claims during disasters.

Looking ahead, Tesla’s expansion of its insurance program signals the company’s ambition to continue vertically integrating its services, including coverage of its vehicles. Reducing dependency on third-party insurers only makes things simpler for the company’s automotive division, as well as for its customers.

Advertisement
-->
Continue Reading

News

Tesla Full Self-Driving gets sparkling review from South Korean politician

“Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about.”

Published

on

Credit: Soyoung Lee | X

Tesla Full Self-Driving got its first sparkling review from South Korean politician Lee So-young, a member of the country’s National Assembly, earlier this week.

Lee is a member of the Strategy and Finance Committee in South Korea and is a proponent of sustainable technologies and their applications in both residential and commercial settings. For the first time, Lee was able to utilize Tesla’s Full Self-Driving technology as it launched in the country in late November.

Her thoughts on the suite were complimentary to the suite, stating that “it drives just as well as most people do,” and that “it already feels like a completed technology.”

Her translated post says:

Advertisement
-->

“Finally, today I got to experience Tesla FSD in Seoul. Thanks to the Model S sponsored by JiDal Papa^^, I’m truly grateful to Papa. The route was from the National Assembly -> Mangwon Market -> Hongik University -> back to the National Assembly. Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about. Once it actually spreads into widespread use, I feel like our daily lives are going to change a lot. Even I, with my license gathering dust in a drawer, don’t see much reason to learn to drive a manual anymore.”

Tesla Full Self-Driving officially landed in South Korea in late November, with the initial launch being one of Tesla’s most recent, v14.1.4.

It marked the seventh country in which Tesla was able to enable the driver assistance suite, following the United States, Puerto Rico, Canada, China, Mexico, Australia, and New Zealand.

It is important to see politicians and figures in power try new technologies, especially ones that are widely popular in other regions of the world and could potentially revolutionize how people travel globally.

Advertisement
-->
Continue Reading

News

Tesla dispels reports of ‘sales suspension’ in California

“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.

Sales in California will continue uninterrupted.”

Published

on

Credit: Tesla

Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”

On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”

Tesla enters interesting situation with Full Self-Driving in California

Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”

The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.

Advertisement
-->

However, Tesla said that its sales operations in California “will continue uninterrupted.”

It confirmed this in an X post on Tuesday night:

Advertisement
-->

The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.

One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.

Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.

This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”

Advertisement
-->
Continue Reading