Tesla considers franchising dealers, as Michigan passes legislation banning OEM-direct sales to buyers

Tesla considers franchising dealers, as Michigan passes legislation banning OEM-direct sales to buyers

After fighting dealers tooth and nail over OEM direct sales legislation in several states, Tesla CEO Elon Musk told Autoline TVês John McElroy, that he might need franchised dealers to sell his cars in some states. –We may need a hybrid system, with a combination of our own stores and some dealer franchises,” Musk said.

His comments came a few days after a bill banning direct auto sales in Michigan passed the state legislature and was sent to the governor for his signature. Gov. Rick Snyderês office has said he is studying the bill, which is tied up with local politics, reports Automotive News.

OEM direct sales from factory stores are banned in Maryland and Texas, but permitted on a limited basis in New Jersey and Pennsylvania. Virginia is unequivocally the most limited in a Tesla-specific law, such that the automaker can only operate one (1) OEM direct retail facility in the Commonwealth.

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