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ARTICLE · 07 NOVEMBER 2016

Tesla Takes On Michigan

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Tesla's fight to sell its popular electronic cars directly to consumers, rather than through independent dealers, recently took a decidedly more aggressive turn.

United StatesAntitrust/Competition Law
Louis Chronowski, Jr.
Louis Chronowski, Jr.
John Skelton
John Skelton
James McGrath
James McGrath
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Tesla's fight to sell its popular electronic cars directly to consumers, rather than through independent dealers, recently took a decidedly more aggressive turn. On September 22, 2016, Tesla sued the State of Michigan, including its Governor, Attorney General and Secretary of State. (Tesla Motors, Inc. v. Johnson, et al., Civ. Action No. 16-cv-1158, United States District Court, Western District of Michigan). While Tesla has had to fight several challenges to its ability to sell directly to consumers, here Tesla argues that the State of Michigan has violated Tesla's constitutional rights by enforcing a law passed in 2014 that bars Tesla from directly selling or servicing cars in the state of Michigan. This is the first lawsuit we are aware of filed by Tesla arguing constitutional violations as a result of a direct sale ban.

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