Yahoo Autos Tesla Sues State of Michigan Over Dealership License Denial
Earlier this month, we reported that the state of Michigan had officially denied Tesla's application for a dealership license. And while there was a chance Tesla might appeal the ruling, it instead sued the state of Michigan in federal court.
Automotive News reports that Tesla filed suit over Michigan's ban on the direct sale of vehicles. A previous version of Michigan's law had what appeared to be a loophole that would allow Tesla to establish its own dealerships in the state. But in 2014, Governor Rick Snyder signed a bill that changed the law that closed the loophole, effectively banning Tesla sales in the state.
The electric automaker isn't only suing the state, though. Governor Snyder, state Attorney General Bill Schuette and Michigan Secretary of State Ruth Johnson have all been named in the suit, as well.
Considering that the Federal Trade Commission previously released a statement in support of direct-to-consumer auto sales, it will be fascinating to see how the court rules. Losing this lawsuit would be a huge step backwards for Tesla, but at the same time, a win could set a precedent that leads to other states overturning their own direct sales bans.
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