Michigan Governor Ponders Anti-Tesla Law

Mich. Gov. Rick Snyder has until Oct. 21 to decide whether to sign or veto a bill that would ban Tesla Motors Inc. from selling cars direct in the state.

The bill began in May as a measure to govern a carmaker's ability to control certain fees charged to customers by its franchisees, according to Crain's Detroit Business. The anti-Tesla language was quietly injected into the bill by the state Senate earlier this month.

Tesla claims its electric cars are better sold directly by the company. Most states, including Michigan, have strong laws requiring that cars be sold only through franchised dealers.

Tesla says it learned of the revised language in the Michigan bill only after the measure was pushed through the legislature. It complains that franchise proponents rushed the bill through to avoid a public debate.

Spokespersons for the House and Senate say lawmakers were unaware of the significance of the added language.