Tesla has experienced another setback with its direct-to-consumer sales approach.
Michigan Governor Rick Snyder has signed a piece of bipartisan legislation that will ban Tesla sales in the state of Michigan. The bill was approved by 38-0 in the state Senate and 106-1 in the state House of Representatives. The Governor has released a video clarifying why the bill was signed, saying “This bill does not, as some have claimed, prevent auto manufacturers from selling automobiles directly to consumers at retail in Michigan – because this is already prohibited under Michigan law.”
House Bill 5606 actually modifies language in the preexisting bill which plainly stated that a manufacturer can only sell new vehicles to consumers through its own network of franchised dealers. HB5606 removes the word “its” from the sentence in existing law. Snyder did say that lawmakers should analyze and discuss the current business model to determine if it’s best for the state’s consumers.