Tesla has sued Michigan Gov. Rick Snyder and two other officials over the state's refusal to allow the automaker's direct sales-and-service model.
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The suit was filed only days after the state government rejected Tesla's application for direct vehicle sales, Reuters reports.
Tesla does not operate franchised dealers, but instead chooses to run its own facilities, which are not allowed in Michigan—a decision that violates the company's right to due process, equal protection, and commerce, it claims.
"While customers have welcomed Tesla with open arms, groups of industry incumbents, including some dealer associations across the country, have viewed Tesla as a threat to their local monopoly power over automobile distribution," the filing said.
"Rather than try to compete with Tesla, some of these well-connected players have tried to block Tesla from local markets altogether by lobbying state legislatures for protectionist legislation," it continued.
In 2014, Michigan was among several states that banned direct consumer sales of cars by auto manufacturers. At the time, Tesla claimed it was the only company without a franchised dealer operation in the state; the EV maker's closest showroom to Detroit is in Ohio.
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"The new law was immediately recognized by the public for what it was: a highly protectionist, dealer-driven law intended to shut Tesla out of Michigan," the lawsuit says. "It was aptly dubbed the 'Anti-Tesla bill.'"
In November, Elon Musk & Co. submitted two applications—one for a vehicle dealer license (required to sell new and used cars in the state) and one to register a vehicle repair facility (required to service cars in the state). Last month, the Michigan Department of State formally denied the dealer license; the application for a used vehicle dealer license remains pending.
A representative from Snyder's office told PCMag that the governor does not comment on pending litigation. Tesla did not immediately respond to a request for comment.
Musk, meanwhile, teased the Oct. 28 unveiling of a new Tesla/SolarCity solar roof, with integrated Powerwall 2.0 battery and charger. Tesla recently acquired SolarCity in a $2.6 billion deal, which aims to use the alternative energy source as a primary charging capacity for its electric vehicles.