Tesla Fails To Sell Electric Cars In Michigan; The Reason Revealed!

Sep 20, 2016 05:06 AM EDT | Eve C.

Tags tesla, Michigan
The Bunker Club Hosts The Tribeca Film Festival After-Party For Revenge Of The Electric Car

NEW YORK, NY - APRIL 22: Tesla Motors CEO Elon Musk (L) and General Motors executive Bob Lutz attend the Tribeca Film Festival after-party for Revenge Of The Electric Car hosted by The Bunker Club at The Bunker Club on April 22, 2011 in New York City.
(Photo : Photo by Joe Corrigan/Getty Images for Tribeca Film Festival)

Tesla has been the leading brand when it comes to selling electric cars. However, there is one U.S. state which is not convinced. Michigan government blocked the automaker from offering the vehicles to their people.

Detroit News reported that the state denied the application. The license was denied because according to Michigan law, a dealer must have a contract with an auto manufacturer.

Notably, Tesla is acting as both. Thus far, the company's way of selling its vehicle directly to consumers is considered illegal. Furthermore, the Director of Michigan Department of State Communications Gisgie Dávila Gendreau seconded and explained the decision via email.  

"The license was denied because state law explicitly requires a dealer to have a bona fide contract with an auto manufacturer to sell its vehicles. Tesla has told the department it does not have one, and cannot comply with that requirement," the director said.  

On the other hand, a Tesla spokesperson stated that the company will continue to convince the Michigan government. But did not provide any specifics about the next move.

But for those who are living in Michigan but want to buy a model from Tesla may still purchase online. They can either pick it up at a certified Tesla store or have it delivered. So far, closest stores to Detroit are Cleveland and Columbus. 

Meanwhile, Green Car Reports revealed that there has been a battle ongoing between Elon Musk's car company and the Michigan government. Tesla has been trying to surpass the rule for over two years.

In other news, the car company reveals the Model X Mania during a tour, according to online journal The Motley Fool

It certainly appears that Tesla's efforts to offer their line of electric cars has been expanding despite the issues concerning some of the models. Check out Auto World News for more updates regarding Tesla and other car companies.

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