By Madeline O'Leary   (Bloomberg) — Tesla Motors Inc. would be blocked from selling its electric cars in Michigan under legislation that cleared the state's legislature and now awaits Governor Rick Snyder's signature to become law.

"Many bills came over as the legislature finished the session, and the governor is doing due diligence by examining all of them," said Dave Murray, deputy press secretary for Snyder, a Republican. The governor has until Oct. 21 to either sign or veto the bill.

Elon Musk, Tesla's co-founder and chief executive officer, has said the unique nature of the company's cars means that they are best sold directly by the company, rather than through franchised dealers. Tesla operates its own showrooms, or galleries, and takes orders over the Internet. That approach undermines how franchisees have sold vehicles for decades, dealers have said.

This year, Tesla also butted heads with dealer groups in Georgia, Missouri, New Jersey, New York, Ohio and Pennsylvania before reaching compromises.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.