Michigan was among the US states were Tesla didn’t have its own store or service center, because of the Law that prohibit automakers to operate as the car dealers at the same time. It’s well known that this law strongly supported by the Michigan Big Three automakers and local dealership. Now, Tesla is continuing to operate against this regulation and opens its first showroom in the state
In September we have reported that State of Michigan continued with its ban on direct sales in 2014, and fully denied Tesla’s request for a dealer license. Tesla announced that it will continue fight for direct retail business model, and it seems that now they find a solution.
Tesla’s showroom inside the Nordstrom store in Somerset shopping mall
For the last three years Tesla was trying to open a store and service center in Michigan, but the decision makers were strong in their decisions not to allow it, which was the reason for the law suit of the Electric Vehicles producer from the Silicone Valley against the state. However, while the case is on the court, Tesla opened a showroom in Troy yesterday. The showroom is located inside the Nordstrom store in the Somerset shopping mall.
This is the expansion of the cooperation and partnership between Tesla and the department store, since the automaker first opened a small retail gallery in the Nordstrom store at The Grove in Los Angeles earlier this year and last week, it opened a second location on the other side of the country in Charlotte, North Carolina.
Since the Michigan’s law on direct sales is one of the strictest in the US, producers, which also includes Tesla, are not allowed to organize direct sale. Even the over 400 owners of the Tesla cars, can’t get service in this state so they need to travel to the neighboring states to have their vehicles serviced. Location in Troy has provided with signs “Not for sale” in order make sure it isn’t discerned as a store.
Solution for that was also founded. A group of Tesla owners formed an association in Michigan and started giving test drives to potential customers. Since they are not working for Tesla, they are technically allowed to give someone a ride a talk about the car. This actions could somehow make the state to reconsider its own decisions and allow Tesla to sell its vehicles in the state.