Michigan Passes “Anti-Tesla” Bill. Do you agree?

By Amanda Lewan on October 24th, 2014 / Comments

Earlier this week the State of Michigan followed suite with other states who are limiting the sales of cars to individuals who do not purchase the vehicle from a registered dealership.

Tesla, the growing startup automaker based in California, designs and develops electric vehicles. The Model S produced by Tesla broke previous safety records, winning the bragging rights of highest safety rating ever achieved for a car. Founder and CEO Elon Musk has built a business model that bypasses the traditional dealership to sell directly to consumers. The bill passed this week in Michigan titled “HB 5606” will prevent Tesla from operating his business this way in Michigan.

Tesla has spoken out publicly on their blog, stating the bill goes even further preventing them from informing consumers in Michigan about their car:

“This amendment goes even further. It also seeks to prevent Tesla from operating a gallery in Michigan that simply provides information without conducting sales. We could even be barred from telling people about our car.”

Read the full Tesla Response. Read the Michigan Bill passed – HB 5606.

The bill passed almost unanimously. Others state that passing this bill ensures a lot of local jobs would be kept safe, an estimated 29,000 jobs in Michigan.

As innovators and entrepreneurs, do you feel this is right to ban sales directly to consumers? Do you believe the dealership model is outdated?

Share your thoughts with us below.


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About the Author

Amanda Lewan

Amanda Lewan

Editor @michipreneur. Co-founder Bamboo Detroit. Follow me @Amanda_Jenn. I love telling the story of entrepreneurs and innovators.