Business & Tech
Tesla Opens Gallery At the Somerset Mall, Yet Is Barred From Selling Any Teslas
Why did Tesla open a gallery in a state that bans it from selling cars?
TROY, MI — Can you imagine opening a store yet being banned from selling anything in said store? That's the predicament Tesla Motors finds itself in.
The luxury electric car marker, which sells two models starting around $66,000 and up, depending on upgrades, opened a mini gallery on Dec. 1 at Somerset Collection in Troy. Good luck trying to buy a Tesla at Somerset though. A gallery sign advises would-be buyers to head to Tesla's website or the closest Tesla location in Ohio, the Detroit Free Press reports.
What's going on here? Tesla sells vehicles directly to consumers. There is no middle man "ahem" - dealer. In fact, you can go on Tesla.com and order your car just as you'd order a pizza online and pick out your toppings. This won't fly in Michigan though, home to the Big Three and powerful auto lobbyists. In 2014, new Michigan legislation nicknamed the "Anti-Tesla law" went into effect banning direct to consumer vehicle sales and stating only a licensed franchise dealer can sell cars.
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What did Tesla do? The California-based car maker applied for a dealership license to sell vehicles in Michigan. That was a no go, and Secretary of State Ruth Johnson denied the request in September. Tesla in turn filed a lawsuit, alleging the law is unconstitutional and protects the Big Three from competition. The case is ongoing.
So, what provoked Tesla to just open a gallery in a state that has made it abundantly clear that it's not welcome? Tesla did not immediately respond to a Patch interview request. The mystery - and lawsuit - continues.
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Photo by theregeneration via Flickr Commons
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