Tesla and the state of Michigan has finally reached a settlement for the electric car maker to be able to directly delivery it’s electric cars to customers.
Tesla has reached a settlement with the state of Michigan in a 2016 lawsuit the company filed against the state’s governor and other officials for an “anti-Tesla” law.
The big three automakers including Ford Motor Company, General Motors Company, and Fiat Chrysler Automobiles N.V.’s United States subsidiary, all headquartered in Michigan, were reported to have lobbied for the 2014 law that restricts Tesla’s ability to sell in the state.
After they won the lobbying, the state of Michigan law then forbids direct manufacturer-to-customer sales in favor of franchised dealerships. This law affected car manufacturers like Tesla not only in terms of sales but also in terms of repairs.
Tesla customers that were able to buy their Tesla cars outside the state of Michigan so far faced particular difficulties in getting the Tesla cars fixed. In most cases, the cars had to be towed to Tesla’s service center near the Michigan border in Ohio.
The electric vehicles maker faces similar challenges in Texas and Connecticut.
The Palo Alto-based automaker can now deliver its vehicles directly to the customers in the state, Bloomberg reported on Tuesday.
The vehicles will still need to be titled in another state, but can then be transferred to the state, people familiar with the matter told Bloomberg.