Tesla could soon sell and service its vehicles in Michigan

Tesla's Stock Hits Two And Half Year Low As Analysts Continue Downgrading The Company

BURLINGAME, CALIFORNIA - MAY 20: Tesla cars are parked in front of a Tesla showroom and service center on May 20, 2019 in Burlingame, California. Stock for electric car maker Tesla fell to a 2-1/2 year low after Wall Street analysts questioned the company's growth prospects. (Photo by Justin Sullivan/Getty Images)


Tesla reportedly reached a settlement with the State of Michigan regarding the sales and service of its vehicles. According to the AP, this settlement would end the automakers lawsuit against the state, which barred Tesla and others from selling vehicles directly to consumers. This would lead to consumers being able to purchase, take delivery, and service Tesla vehicles within the State of Michigan.

Currently, Michigan law states consumers can only purchase vehicles through franchised dealerships and not directly from an automaker. Tesla, as an automaker, sells directly to consumers through dealerships it owns. As a result, consumers in Michigan had to jump through hoops to purchase a Tesla vehicle.

Currently, Tesla has a limited presence in the home state of America’s Big Three automakers. Shoppers have to visit a so-called showcase within an upscale mall located in a Detroit suburb. Representatives at this location cannot advice shoppers on vehicle pricing or buying options. What’s more, if a Tesla vehicle is purchased in Michigan, it must be obtained in a different state.

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Tesla challenged Michigan’s stance in a 2016 lawsuit and this settlement would give consumers more freedom of choice by allowing Tesla to sell and service vehicles. Under the terms of this settlement, Tesla would sell vehicles through a subsidiary and deliver vehicles to consumers. However, these vehicles would be titled from a different state, forcing the new owners to retitle them for Michigan. Tesla will also be allowed to open service centers in Michigan.

Elon Musk seems happy with the report of the settlement.


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