zzdcar
Home
/
Reviews
/
Culture
/
Tesla Finally Cracks A Ban On Direct-To-Consumer Sales On The Big Three's Home Turf [UPDATE]
Tesla Finally Cracks A Ban On Direct-To-Consumer Sales On The Big Three's Home Turf [UPDATE]-August 2024
2024-02-19 EST 22:12:47

Image for article titled Tesla Finally Cracks A Ban On Direct-To-Consumer Sales On The Big Three's Home Turf [UPDATE]

Even though direct-to-consumer car sales, Tesla’s preferred sale model, have been banned in Michigan since 2014, you can still spot a few Model Ss and 3s bravely traversing the state’s icy roads. Brave, because Michigan law bans Tesla from even opening up a service station. Michigan Tesla owners have been treking, sometimes towing, to Ohio to get cars serviced, but that seems to be ready to change.

Tesla and Michigan have settled a federal lawsuit challenging Michigan’s ban on direct-to-consumer sales, according to , and could file the agreement as early as Wednesday. While Tesla still won’t be selling cars directly in the Great Lakes state, the company will be allowed to open a service station. Customers would still have to buy their Teslas in another state then transfer the title to Michigan.

: from the Michigan Attorney General Tesla will be able to sell cars in the state, just as long as the sales contract indicates that the sale took place in a state other than Michigan.

Since 2017 Tesla has operated a store in a high-end shopping mall in Troy, Michigan, though employees are only able to showcase the vehicle, not sell it. The model inside the mall even has a Not For Sale sign on the windshield. The state has banned the company from opening service stations. Elon Musk has identified service stations as key to growing the brand. This meant Michigan owners had to not only buy their vehicle in another state but had to go to Toledo, just over the Ohio-Michigan border, to get serviced. And there’s nothing a Michigan person finds more distasteful than going to Ohio.

This is a big deal. Tesla sells its cars directly to consumers in two dozen states, but still faces roadblocks in many parts of the country. Of those states that do allow for direct-to-consumer auto sales, only ten do not have a limit on the number of Tesla stores allowed. In Michigan, the problem is obvious; the domestic auto industry, still the largest employer in the state, has a tight grip on controlling laws and policies that benefit it. Even a small win in this state could signal future victories.

That doesn’t mean Tesla doesn’t have a tough fight on its hands. Auto dealers all over the country form powerful lobbies to push legislatures to keep the dealership sales model as the status quo. While Tesla spends money and energy trying to change the law in these holdout states, making headway has been slow going. In 2017, for instance, Tesla spent 1.2 million in Texas trying to crack into direct sales, according to , only for Texas to consider even stricter laws on Tesla’s operations a few years later. Here are the states where Tesla still can’t sell directly to consumers:

Michigan (service center ban being lifted, direct sales still banned)New Mexico (also bans service stations)

Alabama (also bans service stations) South Carolina (also bans service stations) Lousiana

TexasConnecticutWest Virginia

Wisconsin

NebraskaOklahoma

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Culture
The Drivers In The New Grid Game Absolutely Hate Each Other
The Drivers In The New Grid Game Absolutely Hate Each Other
Narratives and racing games historically haven’t mixed too well, though that’s slowly changing. You can thank Netflix for that. story mode pulls more than a few plot beats from Drive To Survive, but it’s still ultimately a squeaky-clean Formula 1 tale. The team at Codemasters’ Southam studio has an even...
Aug 26, 2025
These Are The Five Automotive Innovations The Normies Actually Need
These Are The Five Automotive Innovations The Normies Actually Need
I realize that when it comes to cars and what I like in a car, I’m kind of an outlier. I’m delighted by machines with well under 100 horsepower and the sort of comfort most people would associate with being dragged behind a tractor on a yoga ball. Maybe...
Aug 26, 2025
Blip: Minor Threat
Blip: Minor Threat
Alec Issigonis’ first masterpiece before the Mini. I like how this image makes it seem they arrive in places in pairs at night, driving off of boats and just zipping out into the city. I mean, I suppose some did. Also, I also like how it mentions “improved performance”...
Aug 26, 2025
Mercedes Is Getting Ready To Say Goodbye To Internal Combustion Engines
Mercedes Is Getting Ready To Say Goodbye To Internal Combustion Engines
Mercedes says that the “tipping point is getting closer” on EVs, Hyundai posted big profits, and Tesla and bitcoin. All that and more in for July 22, 2021. Mercedes can’t stop talking about EVs. It , but now the company has attached a dollar figure to that commitment. That...
Aug 26, 2025
The Toyota Camry Will Never Die
The Toyota Camry Will Never Die
When I was a kid in the ‘90s driving a series of broke-ass Volvos from the ‘80s, a Toyota Camry was, truly, an aspirational car. It was reliable and stylish and had good resale value, which my cars had none of. My cousins, for example, had an XV20, and...
Aug 26, 2025
Nissan Once Built A Stereo Just For Your Ass
Nissan Once Built A Stereo Just For Your Ass
A good audio system is important to pretty much any car. It’s vital to be able to really motherfucking crank until your eardrums bleed. Most automotive audio systems have been pretty focused on the ear as the primary receptor of sound, but there was one time, one magical time,...
Aug 26, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved