Jump to content
  • Greetings Guest!

    CheersandGears.com was founded in 2001 and is one of the oldest continuously operating automotive forums out there.  Come see why we have users who visit nearly every day for the past 16+ years. Signup is fast and free, or you can opt for a premium subscription to view the site ad-free.

  • William Maley
    William Maley
    Sign in to follow this  

    Tesla Decides Its Time To Apply For A Dealer License In Michigan

      Tesla does the unexpected in Michigan

    Tesla has been fighting in various states to allow for direct sales of their vehicles. The most contentious being the state of Michigan which enacted a law in October 2014 banning automakers from selling vehicles directly to consumers. Tesla has been working hard to try and change the law by offering test drives and education to legislators, to no avail. Even the Federal Trade Commission has called on the state to rethink this law. But Michigan is sticking to its guns.


    So Tesla decided to do the unexpected, apply for a Michigan dealer license.


    The Detroit News reports the California electric vehicle builder submitted applications in November to the Michigan Secretary of State Office for a dealer license. Recently, Tesla sent in follow-up information to the office.


    Secretary of State spokesman Fred Woodham tells the News that Tesla is applying for a 'Class A' dealership license, which allows it to sell new and used vehicles. The license requires the dealer to have a “repair facility as part of their business or have an established relationship with a licensed repair facility.”


    Woodham went on to explain the office is currently reviewing the paperwork and will have a decision in the next month or so.


    It is unclear who submitted the documents to the Secretary of State.


    Michigan Information & Research Service Inc., a news service based in Michigan's capital - Lansing - first reported the story. The service said Tesla could contract anyone - aside from itself - to set up a dealer. Tesla could even send a former employee to open a dealer where “in which it mandates the dealership look, act and do business exactly as the Tesla-run stores.”


    A Tesla spokesman tells AutoblogGreen, "As recently amended, current Michigan law prohibits Tesla from being able to license its own sales and service operations in the state. Submission of the application is intended to seek the Secretary of State's confirmation of this prohibition. Once confirmed, Tesla will review any options available to the Company to overturn this anti-consumer law."


    Along with Tesla's application, a 22-year old graduate of the University of Michigan has launched a petition to repeal the direct sales ban. Mick Yuille has formed a ballot committee called Eliminate (i) to force the Michigan legislature to act. If they don't, his proposal will go on the ballot for the people to decide. Yuille needs 252,000 signatures by June 1st for this happen.


    Source: The Detroit News, AutoblogGreen, Crain's Detroit Business

    Sign in to follow this  

    User Feedback

    Recommended Comments

    Managed properly, the dealerships could just be the trojan to enter the hostile Michigan market while really still maintaining full vertical integration.


    But now what is weird is how the other states that permit the direct sales will react.

    Share this comment

    Link to comment
    Share on other sites

    I wish Tesla would have had the balls to just say F Michigan and work on other things. Wait until the customer got fed up with the states bull$h! regulations and made a change that way. Just completely leave the state of Michigan alone.

    Share this comment

    Link to comment
    Share on other sites

    They have no problem selling cars here in Arizona... apparently we don't have the same ancient, idiotic dealer regulations here.   

    It is much easier to sell here than in Michigan though, due to it being D3 central. It's a always going to be a political thing at that point. The only thing we defend tooth nail here is guns (which I have no problem with BTW).

    Share this comment

    Link to comment
    Share on other sites

    I don't think Michigan would care, really.

    But the consumer will still have a want for their cars whether the D3 likes it or not.

    Share this comment

    Link to comment
    Share on other sites

    Your content will need to be approved by a moderator

    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets



Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.