Rick Snyder

Tesla sues Michigan, challenging law that automakers must sell through dealers

Tesla sues Michigan, challenging law that automakers must sell through dealers

Tesla Motors Inc. sued Michigan Gov. Rick Snyder and other top state officials Thursday, challenging a law that ensures automakers can sell only through independent, franchised dealerships and not directly to customers.

The federal lawsuit seeks a declaratory judgment that the 2014 “anti-Tesla” law is unconstitutional and an injunction to prevent its enforcement.

Last week, the Michigan Department of State denied Tesla’s application for a dealer license to sell to consumers, citing the law that is backed by big auto companies and their dealerships. It has not yet decided on Tesla's bid to register a vehicle repair facility in the state, which is home...

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