Tesla Will Continue To Take Steps To Defend The Rights Of Michigan Consumers
If a consumer wants to buy a particular item and a company wants to sell that particular item for an agreed upon price, shouldn't the transaction be permitted to occur?
If the company in question is Tesla Motors Inc (NASDAQ: TSLA), then the answer appears to be a firm no.
According to the Detroit News, Tesla has been denied the right to sell its vehicles directly to consumers in the state of Michigan. State law dictates that consumers can only buy a car from a dealer that has a contract to sell cars with an automaker.
Tesla's business plan is different from the major automakers, and the company wants to operate as both a manufacturer and dealer.
Under the state's Administrative Procedure Act, Tesla could appeal the decision to a circuit court. The company told the Detroit News that it wants to "defend the rights of Michigan consumers" who are tired with the outdated dealer model and just want to buy Tesla's vehicle.
Rep. Aaron Miller, R-Stugris, introduced a House bill this past February that would allow companies such as Tesla to sell vehicles directly to consumers. However, the bill has sat stagnant and is set to expire at the end of the year.
"The discussion's not over but for this session I think we've reached that point of no progress," Miller told the publication. "I think the clock is going to run out on us."
'Big Change' For The Auto Industry
Rebecca Lindland, Kelley Blue Book's senior director of commercial insights, told Benzinga that Tesla's fight to sell its cars directly to consumers is an "interesting" but on-going battle not only across Michigan but the entire country.
Lindland added that Telsa is essentially proposing "an automaker-owned sales point," and this would be a "big change" for Michigan. However, she emphasized that change, especially in the auto industry, is "never an easy thing."
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