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Ford Will Have More Competition In Michigan After Tesla Lawsuit Settles

When it comes to selling electric vehicles in the home state of the Big 3 automakers, there has been less competition because Tesla has been fighting a legal battle against the state of Michigan. That legal battle came to an end this week when the state of Michigan filed to settle a lawsuit with Tesla. The settlement will allow Tesla to sell vehicles in the state directly to customers.

The settlement brings an end to a six-year legal battle and steps up competition within the state just as Ford is gearing up to launch its Mustang Mach-E EV. Other automakers are also ramping up production of electric vehicles. The settlement recognizes that any resident of the state of Michigan may “lawfully buy a Tesla and have it serviced in Michigan.” Tesla had been barred from opening service stations within the state of Michigan or selling vehicles directly to customers within the state since October 2014.

That ban was instituted when former Governor Rick Snyder signed a bill into law that he said both clarified and strengthened an existing statute that prohibited direct sales of new cars to protect dealers. Dealerships around the country have fought Tesla’s direct to consumer sales method as many fear other automakers will follow suit. There is a caveat to the settlement, while Tesla may operate service and repair facilities in the state, they must be operated through a subsidiary that is identified as “Tesla Michigan.”

Tesla appears ready for sales and service in the state, as a Plymouth-based entity was registered with the Michigan Department of Licensing and Regulatory Affairs on December 4th under the name Tesla Michigan Inc. Owners should be happy for the change as they have been having to travel to Cleveland, Columbus, or Chicago to obtain their vehicles and have the vehicles serviced.

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Source: The Detroit News

Shane is a car guy with a fondness for Mustangs and off-roading.

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Comment

  1. douglas

    If I remember correctly the US govt. gave testla millions of start up money. When the company was viable they moved to Sweden? Now they are building them in china. I don’t get it.

    Reply

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