FTC Wants Michigan to Lift Tesla Sales Ban

The Federal Trade Commission (FTC) wants Tesla cars to be sold in Michigan.

The federal agency recently urged the state of Michigan to lift its Tesla sales ban, sending an 11-page letter to Michigan State Senator Darwin Booher, R-Evart. In the letter, three senior FTC staff members urged Michigan to drop its ban to automakers selling vehicles directly to consumers, noting that it amounts to “protectionism” for dealers and is “likely harming both competition and consumers.” The Tesla sales ban in Michigan was signed into law last October by Governor Rick Snyder and was backed by Michigan’s new-car dealership lobby.

SEE ALSO: Tesla Buys Michigan-Based Auto Supplier

Tesla has been fighting an uphill battle in various states across the U.S. for its direct-to-consumer sales approach since it began selling cars through its boutique showrooms. At least three other states have passed laws specifically targeting a Tesla sales ban including West Virginia, Texas and Arizona. Other states have limited the number of stores Tesla is allowed to open.

Despite the absence of dealerships in Michigan, 50 Teslas have been registered as of October 2014. The company recently acquired a Cascade Township-based auto supplier and tool-and-die manufacturer.

[Source: The Detroit News]

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