Michigan governor signs law that Tesla says bans direct sales model
Send this to a friend
- Patrick Hoge
- Reporter- San Francisco Business Times
- Email | Google+ | Twitter | LinkedIn
Michigan Gov. Rick Snyder signed a law Tuesday tightening a ban on direct sales of news cars, the latest in what Tesla (NASDAQ: TSLA) says are similar rules in states its says are protecting old fashioned auto dealers from the expanding electric automobile maker.
It says state lawmakers in Michigan and other areas are passing anti-competitive legislation aimed at blocking Tesla's disruptive direct-to-consumer, no price-haggling sales method.
Tesla, the Palo Alto maker of electric automobiles, recently posted a blog urging voters to demand that Snyder veto HB5606, which it said catered to the Michigan Automobile Dealers Association.
The legislation would "create an effective prohibition against Tesla opening a store in Michigan" and "seeks to prevent Tesla from operating a gallery in Michigan that simply provides information without conducting sales," Tesla wrote.
Snyder, however, issued a statement saying the legislation "clarifies and strengthens an existing law about direct auto sales in Michigan," which already prevents auto manufacturers from selling automobiles directly to consumers in the state.
As to the future, Snyder said lawmakers "can and should discuss the current business model soon to determine if it is best for the state's consumers."
Patrick Hoge covers technology for the San Francisco Business Times.
Most Popular
- Most popular
- Emailed
- Mobile
- Bubble or no bubble? 6 CBRE real estate forecast takeaways
- Silicon Valley sprawls East: Tech, housing, transit shaping megaregion
- All tech giants will break up like eBay and HP, Andreessen predicts
- Tesla analyst warns of Model X delay, floats an electric pick-up truck
- Mountain View mulls big developer fee hikes
- KB Home's Communications Hill project to bring SJ thousands of homes
- 49ers crunch Santa Clara hotel market; Will new rooms get built?
- Facebook asks DEA to quit using fake IDs
- Is Sand Hill Road still the center of the VC universe?
- Apple event shows off new iPad's improved photography
-
National Sales Manager The Business Journals | San Francisco, CA
-
Head of Sales Digital advertising firm *CONFIDENTIAL* | Sunnyvale, CA
-
Stock Administrator Nelson | San Jose, CA
-
Data Center Tech TEKsystems, Inc | San Jose, CA
-
Accountant I The Housing Authority of the County of Santa Clara | San Jose, CA
Featured Property
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.