Detroit Today

Michigan Auto Legislation Could Shut Out Tesla Motors

Wednesday, October 22, 2014

Photo courtesy of VentureBeat

Laura speaks with Michigan Public Radio Network's Capitol Bureau Chief Rick Pluta about strengthened automobile legislation affecting Tesla auto manufacturers and consumers.

Governor Synder signed a bill yesterday to approve legislation HB 5606 to strengthen existing regulations on automakers' (like Tesla) with direct-to-consumer business models. The new legislation allows dealerships to decide whether or not to charge certain transaction fees.

California-based electric automotive company Tesla Motors is claiming the move is a direct effort to prohibit its unique sales model. That model, which basically cuts out dealerships, is not surprisingly unappealing to Michigan lawmakers considering the state's automotive industry, even though Gov. Snyder denies the motive. The legislation also interestingly affects Tesla, as it also prevents the auto manufacturer from displaying and communicating to potential consumers in the state.