A fight resulting from a 2014 Michigan law is over, as Tesla will finally be able to sell its vehicles in Michigan through a subsidiary.
The state of Michigan has settled a case the Palo-Alto, Calif.-based electric automaker founded by Elon Musk. The company filed in 2016 over a law banning company-owned stores and service centers. Tesla argued that the domestic auto industry — with General Motors, Fiat-Chrysler Automobiles and Ford all based in Southeast Michigan — was trying to throttle competition.
The case is Tesla Inc. v. Benson, as in Secretary of State Jocelyn Benson in her official capacity.
“Today the state of Michigan defendants Secretary of State Jocelyn Benson and Attorney General Dana Nessel filed a stipulation to dismiss with Tesla that recognizes that any Michigan resident may lawfully buy a Tesla and have it serviced in Michigan,” said Nessel spokeswoman Kelly Rossman-McKinney in a statement Wednesday morning. “The stipulation acknowledges that Tesla may: operate under existing Michigan law; sell cars to Michigan customers as long as the sales contract indicates the sale took place in a state other than Michigan; and, indirectly own service and repair facilities in Michigan through a subsidiary, Tesla Michigan.”
Tesla also has been fighting to sell directly to consumers in other states like Texas and Connecticut, Bloomberg News reports.