Tesla is suing Gov. Rick Snyder and other state officials, challenging a 2014 law that ensures automakers can only sell through franchised dealerships. It was denied because the company’s business model of selling its vehicles directly to consumers is illegal under MI law, according to a final decision and order released Thursday by state officials.
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The state has prevented Tesla from operating through the direct-sales ban and by rejecting Tesla’s application for a vehicle dealer license, according to the lawsuit.
A spokesman for Snyder said the governor had no comment.
Tesla said in a statement it filed the suit to ask a judge to strike down a 2014 MI law that bars Tesla from selling or repairing vehicles in the state.
Tesla now operates stores in 23 US states and the District of Columbia and 20 other countries.
“Solving this legislatively always has been and continues to be Tesla’s preferred option”, the company said in a statement Thursday. The state hasn’t ruled on Tesla’s request to register a vehicle fix facility, more than nine months after its initial application, John Bursch, Tesla’s lawyer, said in the complaint.
All U.S. states bar manufacturers with dealers from selling directly to consumers.
“Rather than try to compete with Tesla, some of these well-connected players have tried to block Tesla from local markets altogether by lobbying state legislatures for protectionist legislation”, the suit states. Last week the Michigan Secretary of State stuck by a decision to deny Tesla a dealership license.
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“The department followed state law when it denied Tesla’s dealership application. So you’re not going to be here”.
