Tesla sues Michigan over direct sales model

Tesla sues Michigan over direct sales model

Tesla has sued the state of Michigan for the right to sell its cars there under a direct sales model, saying that Michiganês two-year-old law banning direct sales is unconstitutional. That is a much broader challenge than the automaker has made in other states. If Teslaês challenge is effective, it could threaten state bans on direct sales nationwide.

Michigan turned down Tesla for a new-car dealership license in mid-September because state law requires that a dealer have a contract with an automaker and cannot play both roles.

Tesla aims to reverse direct sales laws throughout the nation, not just in Michigan, analyst Mike Ramsey of Gartner Inc. told the Detroit News.

Locally, Tesla has a showroom in Tysons Corner, VA, and a sales outlet in Montgomery Mall, Bethesda, MD.

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