Michigan, the state that is known to be the one responsible for putting America on wheels and one state that is known for its auto manufacturing, one car making firm is being effectively boxed out.
Ever since 2014, when a Michigan law was implemented by the Republicans was put forward to ban the sale of cars through the Tesla policy. The move was said to be a way to block the direct to consumer sale policy by the electric car making firm. The company has tried to open its own dealership in the state of Michigan but independent franchises have been against the move. The Big Three automakers in the country have also been against the move.
This means that there are four states that people can’t buy a Tesla car, and in Michigan all customers who have a Tesla as theirs have to actually go out of the state to get the car serviced. Tesla has been fighting measures against them that want to block sales of their cars in other states, and the company is aligning themselves for other battles to come. Most franchises fear that the sales policy of the company is to eliminate the middle man, something which they think is unfair.
Tesla was firm in its rebellion last month after they filed a lawsuit against the state of Michigan in a move that most believe was a last resort move. This marks the first lawsuit to be filed by the company in the federal courts. In their 24 page complaint, the company said that the new law was nothing but a highly protectionist and dealer driven law.
The company has been selling directly to its customers in 23 of the states that are in the United States. However they have tried and failed to get licenses in four states which include, Texas, Utah, Connecticut and Michigan. It has pledged to wage wars in the states to fight the laws there. They recently fought in Massachusetts and they won the battle. The company was protesting another law which was said to be protecting the middle man as well.
Tesla argues that the traditional of selling cars through the middle man is not conducive with the current market. The electric vehicle technology is something that the public are still skeptical of, therefore they need the appropriate knowledge before they purchase such cars, Tesla says. Daniel Crane, a law professor at the University of Michigan said that Tesla’s decision to file a lawsuit was definitely last resort.
