You are using an older browser version. Please use a supported version for the best MSN experience.

FTC Asks Michigan to End Tesla Sales Ban

Motor Trend logo Motor Trend 5/13/2015 Kelly Pleskot

Michigan is one of a growing number of states that prohibits Tesla from selling cars directly to consumers. Now, the Federal Trade Commission is urging the state to consider repealing its ban on direct-to-consumer auto sales in the interest of car buyers.

In a letter to Michigan State Sen. Darwin Booher, the FTC said that current laws promote "protectionism" for Michigan car dealers at the expense of consumers. The FTC says Michigan should "permit manufacturers and consumers to reengage the normal competitive process that prevails in most other industries."

The letter was penned by three senior FTC members in response to a related request by Booher. Originally, Booher asked for the FTC's take on allowing three-wheelers to bypass Michigan rules and so manufacturers of these vehicles could sell directly to consumers. It was then when the FTC urged Booher to completely repeal the ban on direct-to-consumer sales on all cars by all manufacturers. But just because the FTC requested the repeal doesn't mean it will actually happen; the agency has no power to mandate Michigan change its laws.

2014 Tesla Model S© Provided by MotorTrend 2014 Tesla Model S FTC Asks Michigan to End Tesla Sales Ban

If Michigan lifts the ban, Tesla could benefit greatly. However, Tesla cars have already managed to slip into the state despite the restrictions. As of October, 50 Tesla cars were registered in Michigan, according to data from IHS Automotive. Other states that currently ban Tesla sales include West Virginia, Arizona, and Texas.

Source: The Detroit News, FTC

AdChoices
AdChoices

More from Motor Trend

Loading...

image beaconimage beaconimage beacon