Instead of traditional franchise dealers, Telsa was using online retailing for selling its vehicles online. This allows Tesla to avoid costs related to dealerships and enjoy a high margin for each vehicle that is sold. Due to the pressure from local automakers General Motors and Ford Motor, Michigan state prohibited direct sales of new cars by carmakers. Because of this reason, consumers in Michigan were forced to travel to Cleveland, Columbus, and even Chicago, to take delivery of their new Tesla vehicles.
Today, a new report has revealed that Michigan state has settled with Tesla. With this settlement, Tesla can start selling and servicing cars in Michigan, but there is a condition.
Tesla would be allowed to deliver vehicles in Michigan so long as they are first titled outside the state. A Michigan owner could then get the title switched to Michigan.
This is great news for consumers in Michigan as they now have better access to Tesla’s amazing electric vehicles. Elon Musk basically confirmed the report with the following tweet.
— Elon Musk (@elonmusk) January 21, 2020
Source: The Detroit News