Tesla Faces Bill That Could Ban Sales in Michigan

Tesla Faces Bill That Could Ban Sales in Michigan

Tesla’s state-by-state battle to sell its cars directly to customers is making news in Michigan.

A house bill cleared the state’s legislation chambers and is sitting on Republican governor Rick Snyder’s desk. He has until October 21 to sign it and if that happens, it would prevent the Palo Alto Calif.-based car maker from selling vehicles in that state.

House Bill 5606 was first introduced in May and was originally meant to determine whether or not automakers could prevent franchised dealers from charging certain fees to their customers. The bill was sent to the Senate on October 1, but between the time when it was first introduced and subsequently sent off, anti-Tesla language was added.

“We’ve had a very open and productive dialogue with folks within the administration. They’ve given us the opportunity, brief as it is and with the law already voted on as it is, to articulate what’s at stake for us,” Tesla buisiness development boss Diarmuid O’Connell told Automotive News. “It’s the first time, frankly, we’ve had the opportunity to do that and we’re grateful for that opportunity.”

Meanwhile Tesla continues to struggle with dealer association opposition in other parts of the country. Last month in Iowa, the company had to shut down a test drive event because state laws there require a license for any auto retailing activity. The company is also beginning to market the new all-wheel drive version of the Model S to potential customers and is preparing to bring the derivative Model X crossover to market for 2015.

GALLERY: 2013 Tesla Model S

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[Source: Automotive News]