US: Tesla could be banned from selling vehicles in Michigan image

Here’s an odd turn of events in the ongoing turf war between the California-based electric automaker and the US dealers – the Model S could get a sales interdiction in the state that houses the motoring capital of America – Detroit.

Tesla could get a sales interdiction soon as the Michigan state legislature has passed a law to ban it from its direct sales practice. The only other step in becoming active is to get Governor Rick Snyder’s signature.

So far, according to Dave Murray, deputy press secretary for Snyder, a Republican, the bill has not come to his attention, as the state’s legislature passed many bills before it ended its session and the governor is examining each closely. In any case, Tesla would know if he signs or vetoes it by October 21.

The trouble between Tesla and the US dealers is that Elon Musk’s company circumvents their traditional implication – the electric car company takes orders over the Internet and operates its own sales venues. Musk, Tesla’s billionaire co-founder and chief executive argues the special nature of the cars is best handled directly, not through franchised dealers.

The National Automobile Dealers Association, a group that represents about 16,000 new-car dealers, favors the new bill, which bans automakers from selling “directly to a retail customer other than through franchised dealers,” the only exceptions being nonprofit organizations and government agencies. So far, Tesla and the dealers have also clashed in Georgia, Missouri, New Jersey, New York, Ohio and Pennsylvania but so far managed to reach compromises.