Trade Resources Company News Tesla Sues Michigan Over Ban on Direct Sales

Tesla Sues Michigan Over Ban on Direct Sales

Tesla Sues Michigan Over Ban on Direct Sales

Electric carmaker Tesla Motors has sued Michigan officials challenging a law which disallows it to sell its vehicles directly to customers.

In its lawsuit filed at U.S. District Court in Michigan, the company appealed to strike down the 2014 Michigan law that prohibits the sale or repairing of vehicles in the state.

Reports say that the company has been trying to change or amend this law in Michigan through lobbying and other methods and at last, it resorted to this move.

Tesla Motors has been following a direct sales model. Consumers can either book their cars online or can visit a company operated store to buy an electric car.

Tesla does not have franchise dealers to sell its vehicles. Apparently, some days ago, the state of Michigan rejected the company's application to sell directly to consumers.

At present, Tesla cannot sell in the states of Michigan, Texas, Utah and Connecticut, while in some states, it faces limit on the number of stores that it can have.

Tesla operates in 23 states in US and has its presence in over 20 countries.

Tesla’s statement said: "Unfortunately, the local auto dealers and local manufacturers have made clear that they oppose any law that would allow Tesla to operate in Michigan.

"As one leading legislator told Tesla: the local auto dealers do not want you here. The local manufacturers do not want you here. So you’re not going to be here."

The company noted that the existing law effectively reduced the options of consumers in Michigan, where they are denied the products that they want and are forced to accept the products that they don’t want for higher prices.

Source: http://greenpowertrain.automotive-business-review.com/news/tesla-sues-michigan-over-ban-on-direct-sales-230916-5013718
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