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Michigan bill seeks to end Tesla's direct-to-customer sales

Michigan bill seeks to end Tesla's direct-to-customer sales



Some Michigan lawmakers are attempting to put a halt to Tesla's direct-to-customer sales, which bypass a traditional franchised dealer network. Since January, when the state of Michigan settled with the EV maker, Tesla has been able to operate its own sales and service centers in the state, something that other automakers have been prohibited from doing. Before that, Tesla owners had to take their cars to neighboring Ohio or Illinois for service.

According to the Detroit News, the newly written House Bill 6233 would have preserved Tesla's dispensation and codified it into law, but on Wednesday night Republican legislators amended the bill to specifically eliminate the sections protecting Tesla.

Democrat Christine Greig, reports Detroit News, offered an alternative allowing a certain number of licenses to be granted to EV makers. That would have provided allowances for Rivian, which is headquartered in Michigan and is not part of Tesla's settlement exemption. However, her substitute was struck down.