Tesla criticizes Michigan for bill restricting direct sales

Tesla has criticised Michigan for passing a bill earlier this month that could restrict business operations of the manufacturer in the state, Market Business News reported.

Under the bill HB5606, an effective prohibition would be created against Tesla for opening a store in Michigan. The bill was currently on Republican governor Rick Snyder's desk and he had until 21 October to sign it into law. Tesla was counting on consumers to pressure him into vetoing it.

In a blog post Thursday night, Tesla criticized Michigan's legislature for passing a bill earlier this month that would prevent the electric car manufacturer from opening a store in the state.

The blog post Tesla on Tsaid, "Originally the bill was ''a single amendment to existing law designed to ensure that the car dealers can tack additional fees on to the purchase price for all vehicles (from any manufacturer) sold in Michigan.

However, ''using a procedure that prevented legislators and the public at large from knowing what was happening or allowing debate, Senator Joe Hune added new language in an attempt to lock Tesla out of the State.

Unsurprisingly, Senator Hune counts the Michigan Automobile Dealers Association as one of his top financial contributors, and his wife's firm lobbies for the dealers.

''This amendment goes even further. It also seeks to prevent Tesla from operating a gallery in Michigan that simply provides information without conducting sales. We could even be barred from telling people about our car.
 
Meanwhile, recode.net said at least 10 states had seen legislative showdowns in recent months over such rules, which prevented manufacturers like Tesla from selling automobiles to end customers, with varying results.

Snyder, would have until 21 October to sign the into law. Tesla was calling on consumers to urge him to veto the bill.

''By striking a single, but critical, word from … the law governing franchise relations in Michigan, the dealers seek to force Tesla, a company that has never had a franchise dealership, into a body of law solely intended to govern the relationship between a manufacturer and its associated dealers,'' the company wrote.

''In so doing, they create an effective prohibition against Tesla opening a store in Michigan.''

According to Tesla the change had been pushed by the Michigan Automobile Dealers Association.