Retail

Tesla faces setback in La., fires off subpoenas in Mich.

June 07, 2017 05:00 AM

Louisiana joined the growing list of states banning Tesla Inc.'s direct-to-consumer sales. Separately, the electric car manufacturer is pushing forward in a court case against the state of Michigan for enacting a similar restriction.

In Louisiana, a late provision to unrelated legislation quashed limited exemptions to an existing ban on manufacturer-to-consumer sales, effectively cutting Tesla operations in the state. The bill, signed Tuesday by Gov. John Bel Edwards, originally focused on licensing exceptions for specialty vehicle dealers who manufacture armored personnel carriers for sale to law enforcement agencies, the Associated Pressreported.

While Tesla cars may still be purchased online under the legislation, the company said the legislation directly harms its expansion efforts in Louisiana.

"We are disappointed that special interests managed to ban Tesla's operations in Louisiana against the will of consumers," the company said in a statement.

INTERACTIVE MAP: Click here for a state-by-state summary of Tesla's retail challenge.

Meanwhile, Tesla is continuing the fight in Michigan after making subpoena requests for all communications between Gov. Rick Snyder, key lawmakers, the Michigan Automobile Dealers Association and others involved in banning the company from operating in the state, the Detroit Free Pressreported.

The suit focuses on the 2014 legislation Snyder signed obligating manufacturers to sell through franchised dealerships, effectively closing a potential loophole in the state's existing franchise law that Tesla could have slipped through.

Both dealers and government officials are rejecting the subpoenas, alleging their correspondence is protected under state law. A June 13 hearing on the suit is set before U.S. Magistrate Judge Ellen Carmody in Grand Rapids.

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