According to a report by The Detroit News, the Michigan Department of Treasury increased its shares in Tesla by $48 million in June, which is a amusing thing considering the state has passed legislature, backed by General Motors, banning Tesla from selling its cars in the State of Michigan. Michigan, home to the Big Three – GM, Ford and Chrysler – has seen strong opposition from state legislators to Tesla’s direct-to-consumer sales model.
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The State of Michigan may have a ban on direct sales of Tesla vehicles, but the Michigan Department of Treasury has 339,623 shares worth $72 million invested for state retirement funds in Tesla Motors Inc. stock, according to a published report. However, a few States do not even allow the automaker to give test drive to potential customers; one of them is MI, home to General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F).
A Treasury spokesman told the The Detroit News that investment decisions are made by a team of portfolio managers who operate independently from state regulatory agencies.
The report also said that the fund owned 104,821 Tesla shares as of March 30, before it increased its shares. The State’s investment in Tesla is interesting, as Governor Rick Snyder signed an “anti-Tesla bill” in 2014, which forbids auto sales by any entity except franchised dealers. This has resulted in a ban of Tesla to sell its Model S and Model X through showroom stores.
General Motors CEO Mary Barra implicitly slammed Tesla over just that issue in January, while presenting the 2017 Chevrolet Bolt EV: “Unlike some EV customers, Bolt customers don’t have to drive to another state to buy or service an EV”.
On the other hand, Tesla declares it has around 600 owners in MI that need to take a trip out of state to have their automobiles correctly serviced.
Though Michigan doubled down with an additional $48 million investment into Tesla stock during Q2, the Treasury department’s Bureau of Investments manages over $60 billion investments for the state’s retirement system.
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Tesla shares account for 0.12% of the department’s portfolio worth $60 billion. The department has stake in automobile companies, such as $17 million investment in Ford and $13.7 million stake in General Motors, which are far less than its holdings in Tesla.
