Palo Alto Electric Car Maker— Tesla, May Be Unable To Have Showrooms In Michigan Under New Law
LANSING, Mich.(CBS SF) _ Gov. Rick Snyder has signed into law tighter restrictions to prohibit electric car maker Tesla Motors from selling vehicles in Michigan.
The governor's move Tuesday is welcomed by mainline automakers and dealerships that say all manufacturers should follow the same rules. Tesla has said the "anti-competitive" bill would definitively prohibit it from selling directly to Michigan consumers because it doesn't have franchised dealerships.
Snyder says Michigan law already prohibited automakers from selling straight to drivers and the change lets manufacturers without franchised dealers sell through another automaker's dealers.
Tesla warns it may be unable to even open a viewing gallery in Michigan under the legislation.
Palo Alto, California-based Tesla says it expects to be able to build 100,000 vehicles annually by the end of 2015, up from 35,000 this year.