Tesla News: Tesla Sues Michigan Over Car Sales Ban

Tesla Sues Michigan

Michigan bans Tesla from selling their vehicles within the state and as a counter measure, Tesla sues Michigan. Why are Tesla and Michigan involved in a battle of wills? It started some time ago. In October of 2014 Michigan took steps to prevent Tesla from selling within the state due to their direct buy, non-dealer, policy.

Tesla maintains that car prices should not be negotiated. They strongly feel that the customer experience should be consistent. Therefore, they have taken it upon themselves to showcase and sell their own cars, rather than using an independent dealer. Michigan feels that the independent dealers are crucial to their economy and way of life. They have taken steps in legislation to secure that process. As a result of the law, an arm of Tesla tried to become a legal dealership in Michigan. Unfortunately, their efforts were denied leading to a drawn out legal process.

Tesla Reveals Corruption in Politics

The state franchise law in question was slightly altered at the last minute. This minor change had a big impact on the interpretation of the law, enabling the state of Michigan to pursue legal action against Tesla. This action has ruffled more than a few feathers. Daniel Crane, professor of law at University of Michigan, spoke up calling it “corrupt politics at its worst”.

The Tesla vs Michigan Debate’s Wider Implications

The friction between Tesla and the state of Michigan culminated when an appeal by Tesla Motors was denied at the state level. Now the debate is in the hands of the federal government. If the federal government deems that the decisions made by Michigan are unconstitutional, the process of buying a car could profoundly change through out the entire United States.