Tesla Expands Michigan Presence

Tesla Inc., which is prohibited by law from selling its electric vehicles directly to customers in Michigan, is closing its first and only vehicle display in the state and moving to a larger, stand-alone space at the same upscale mall in Troy, Mich.

The new 2,200-sq-ft gallery is three times the size of the previous display area that Tesla opened within a Nordstrom’s store last December. In addition to the $80,000 Model X crossover vehicle displayed at the old location, the larger site adds a $70,000 Model S sedan and also will showcase solar panels and Tesla’s battery storage technology.

The new $35,000 Model 3 small car, which has a backlog of more than 500,000 orders, won’t be displayed. Employees will be able to talk about the features and performance attributes of all three of the vehicles. But Tesla still won’t be able to take customer orders, share pricing information or conduct test drives in Michigan.

A state law requires all carmakers to sell vehicles through independent dealers. Tesla has since sued Michigan, claiming the law is unconstitutional.

Tesla can sell directly to consumers in about 20 states in the U.S. Most other states have some sort of restrictions, including five that have similar bans to Michigan’s. In these areas interested buyers can order vehicles from Tesla’s website, Tesla.com.