Photo: Tesla
Ladies and gentlemen with a passion for all things Tesla Motors, the unthinkable just happened. The electric vehicle manufacturer recently applied for a Class A license in the state of Michigan, despite the fact that Elon Musk made it clear that he doesn’t believe in the dealership model.
As per the report of Michigan Information & Research Service Inc. (subscription required), the manufacturer itself applied to the Michigan Secretary of State for dealership license. More curiously, a Class A dealership license is usually applied by anyone other than the car manufacturer itself.
From our point of view, this unexpected turn of events comes as a consequence of the fact that Tesla Motors lost the battle to sell its EVs in the Wolverine State because the GM-backed Michigan Automobile Dealers Association pulled some strings back in October 2014.
Don’t think for a moment that Elon Musk lost its mind and gave in to the greedy games played by traditional dealerships. When push came to shove, Tesla Motors responded the best way it could to make its presence felt in Michigan. More so if you consider that the Chevrolet Bolt EV will duke it out with the Tesla Model 3.
According to the Michigan Secretary of State, a decision will be made no later than two months from now. Our view of the direct sales ban of Tesla vehicles is that it is protectionist in nature. In the land of the free, prohibitions on direct sales to consumers don’t really fit in.
The best revenge Tesla could get on the General Motors-backed sales ban in Michigan is to outperform and outsell the Bolt. If the Palo Alto-based company manages to undercut the pricing of the Bolt by at least $1,000, that should be enough to convince people to buy the Model 3 instead of Chevy's electricMPV crossover.
From our point of view, this unexpected turn of events comes as a consequence of the fact that Tesla Motors lost the battle to sell its EVs in the Wolverine State because the GM-backed Michigan Automobile Dealers Association pulled some strings back in October 2014.
Don’t think for a moment that Elon Musk lost its mind and gave in to the greedy games played by traditional dealerships. When push came to shove, Tesla Motors responded the best way it could to make its presence felt in Michigan. More so if you consider that the Chevrolet Bolt EV will duke it out with the Tesla Model 3.
According to the Michigan Secretary of State, a decision will be made no later than two months from now. Our view of the direct sales ban of Tesla vehicles is that it is protectionist in nature. In the land of the free, prohibitions on direct sales to consumers don’t really fit in.
The best revenge Tesla could get on the General Motors-backed sales ban in Michigan is to outperform and outsell the Bolt. If the Palo Alto-based company manages to undercut the pricing of the Bolt by at least $1,000, that should be enough to convince people to buy the Model 3 instead of Chevy's electric
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