The Michigan Secretary of State will uphold a decision for the state to deny a dealer license to Tesla Motors.
The state made an initial motion to deny the electric automaker’s request for a dealer license in November 2015 and ultimately, it was denied because of Tesla’s direct-sales model. If it was approved, Elon Musk’s firm would have been able to sell vehicles through storefronts in Michigan, reports Automotive News.
Laws in place in Michigan since 1981 require all carmakers to sell vehicles to customers through franchised dealers. Unlike most companies, Tesla sells directly to its customers and offers the ability for new cars to be purchased through its website.
Tesla can’t sell vehicles in Texas or Iowa either, due to similar laws.
In good news for Tesla, it was granted a license to sell directly to customers in the state of Arizona. This decision came after the firm was previously denied a license in May.
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