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IPFS News Link • Lawsuits

Tesla Files Lawsuit Against State Of Michigan, Demands Jury Trial Over Direct Sales Restrictions

• insideevs.com Steven Loveday

Michigan law specifically states that an automaker is required to set up a contract with a dealership and can't actually sell its own cars. This type of law applies in other states as well. While the laws are old, and seem unfair to many, they are being upheld around the U.S.

Tesla has been fighting this battle with Michigan and other states for quite some time. Michigan recently attempted to bring the matter to an end by asking Tesla to show proof that it has a dealer contract. Of  course, Tesla is its own dealer. The company makes its own cars and sells its own cars. Makes sense right? Nope. In Michigan you can make cars but you aren't allowed to sell them … at least not without involving a third party.

Tesla feels that Michigan's laws banning direct sales:

Violate the Due Process, Equal Protection, and Commerce Clauses of the Constitution as applied to Tesla by prohibiting Tesla from selling its vehicles directly to consumers and by precluding Tesla from performing service and repairs within the State.


Zano