Tesla has filed suit with the Western District Court of Michigan over its ability to sell its cars directly to consumers and service vehicles owned by state residents. The lawsuit was filed in response to an application for a dealership license earlier in September that lines up with Tesla’s goal of selling vehicles directly to U.S. consumers.
Currently, vehicle sales in the United States depend on dealerships to be set up as franchises, where third parties handle the sales of cars in model showrooms, rather than consumers being sold cars directly from manufacturers. a franchise dealership model, wherein licensed third-parties handle the actual sales of cars from auto manufacturers. Tesla has been trying to eliminate the third-party middle man and sell directly to consumers.
Tesla operates showrooms in many states, but because of legal reasons, isn’t allowed to sell cars directly from them, consumers must buy the vehicles online. The state of Michigan, also America’s automotive capital, won’t allow Tesla to open a show room or a service center.
Despite the Michigan setback, it’s business as usual for the electric car company. Elon Musk, Tesla CEO and founder plans to unveil Tesla and SolarCity’s new solar roof product on October. The product will be directly integrated with version 2.0 of the Tesla’s PowerWall solar storage battery for the home and feature a Tesla car charger. The event will also be consumers’ first full-scale look at the new version of Powerball.