Advertisement

Tesla could face sales ban in Michigan

Tesla does not sell any vehicles through dealerships. They have their own personal showrooms, consultants and sell online as well.

By Aileen Graef
Tesla could face sales ban in Michigan
The Tesla Motors, Inc. is trying to defy a bill that would prohibit them for selling directly in the state. UPI/Brian Kersey | License Photo

DETROIT, Oct. 17 (UPI) -- Michigan Gov. Rick Snyder is contemplating signing a bill that would ban Tesla to sell directly in the state in order to protect dealerships.

The bill would prohibit automakers from selling directly and force them to sell through franchised dealerships. The bill does not mention Tesla by name, but the electric car company is the only one trying to sell their product directly.

Advertisement

Tesla does not sell any vehicles through dealerships. They have their own personal showrooms, consultants, and sell online as well.

"States are fully within their rights to protect consumers by choosing the way cars are sold and serviced," said National Automobile Dealers Association spokesman Charles Cyrill. "Fierce competition between local dealers in any given market drives down prices both in and across brands. While if a factory owned all of its stores, it could set prices and buyers would lose virtually all bargaining power."

Tesla called the bill a "raw deal" in a statement posted to their website, encouraging Michiganders to contact Snyder's office and speak against the legislation.

Elon Musk and Tesla have faced similar resistance in Georgia, Missouri, New Jersey, New York, Ohio and Pennsylvania but eventually resolved the issue through compromise.

Advertisement

Latest Headlines

Advertisement

Trending Stories

Advertisement

Follow Us

Advertisement