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Tesla blocked from selling in Michigan with law backed by dealers

Tesla blocked from selling in Michigan with law backed by dealers

Michigan Gov. Rick Snyder just signed a bill, siding with General Motors Co. and the state’s auto dealers, that prohibits Tesla from selling cars directly to consumers in the state of Michigan. The bill also states that Tesla cannot open any storefronts where the vehicles can be on display and customers can be told about the vehicles, which means that Michigan residents looking to buy a Tesla will have to visit a store in another state.

Even though Tesla is prohibited from selling directly to consumers in Michigan, it still has the opportunity to sell cars, but only through the use a third party for distribution. If Tesla is allowed to bypass the dealer-franchise system, other auto makers might do so as well, which is the main concern for dealers.

Photo: Bloomberg News

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