Tesla Opens First “Gallery” in Michigan

Tesla Motors Inc., which is banned from selling its electric cars directly to customers in Michigan, has opened a one-vehicle display in the Detroit suburb of Troy. It’s the EV company’s first such installation in the state.

Located in an upscale mall, the 700 sq-ft exhibit enables Tesla to show and describe the Model X electric crossover on display there. But it cannot discuss pricing, take orders or conduct test drives. Tesla is blocked from direct selling by a toughened Michigan law that requires all carmakers to sell vehicles through independent dealers.

The state’s law originally was intended to prevent carmakers from competing with their own franchised dealers. Tesla has argued the law wasn’t applicable in its case because the company has no dealers. But the state legislature revised the law's wording last year to eliminate that loophole. Tesla has since sued the state, claiming the law is unconstitutional.