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Expert Insight

Should Tesla (And Other Auto Manufacturers) Be Able To Sell Cars Directly To Consumers?


Date: October 23, 2014 at 11:24 AM

Tesla will not be able to sell their electric cars directly to consumers in Michigan after Governor Rick Snyder signed bipartisan legislation on October 21st that clarifies existing state auto sales laws. Tesla has been fighting with numerous states to maintain their preferred, and successful, business model of selling vehicles directly to consumers, as opposed to the traditional method of selling to franchised dealerships that sell to consumers. The Michigan legislation isn’t unique; forty-eight states have had laws in place for years that ban or limit direct sales of automobiles. In the early years of the auto industry, manufacturers needed… [more]

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