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Tesla Tests Michigan Law Against Factory Car Sales
Tesla Motors Inc. confirms it has submitted a dealership application in Michigan to test the state’s ban on direct car sales by manufacturers to consumers.
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Tesla Motors Inc. confirms it has submitted a dealership application in Michigan to test the state’s ban on direct car sales by manufacturers to consumers.
Michigan has had a strong franchise law for decades that was created to prevent carmakers from competing against their own dealers. In 2014 the state modified the law to prevent new carmakers that don’t yet have dealers from bypassing the traditional dealer system.
Tesla has no independent dealers and markets its cars direct in states that allow the practice. The company describes Michigan’s law as “anti-consumer.”
Michigan’s Secretary of State office say it will decide on Tesla’s dealership application within two months. The carmaker says its next steps will depend upon the nature of the state's response.
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