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Michigan to Tesla: No license to sell cars for you

Sep 16, 2016

In an administrative hearing, the state of Michigan denied electric car company Tesla of California a dealership license that would permit it to sell cars here.

No one was surprised by the denial, including Tesla.

In 2014, Michigan car dealers successfully lobbied the state Legislature to essentially Tesla-proof a Michigan law that forbids auto manufacturers from selling cars directly to consumers. 

That's Tesla's business model, and dealers see it as an existential threat. 

Tesla knew it wouldn't get a dealership license, but applied for one anyway, possibly to prepare for a lawsuit claiming Michigan's law is unconstitutional.

A Tesla spokesperson issued this statement:

At the urging of local car dealers and GM, Michigan law was changed two years ago to prevent Michigan consumers from buying cars from a Tesla store within the state. As part of the process of challenging the legality of that law, Tesla applied for a license in Michigan. Tesla will continue to take steps to defend the rights of Michigan consumers.

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