Tesla sues Michigan, challenges law requiring dealer sales

LANSING, Mich. (AP) — Tesla has sued Gov. Rick Snyder and other state officials, challenging a 2014 law that ensures automakers can only sell through franchised dealerships.

The federal lawsuit filed Thursday seeks a declaratory judgment that the “anti-Tesla” law is unconstitutional and an injunction to prevent its enforcement.

Michigan last week denied Tesla’s application for a license to sell directly to consumers in Michigan, citing the law that’s backed by big auto companies and their dealerships.

Tesla Motors Inc. says it prefers that new legislation be enacted but was told recently by lawmakers that no hearing will be held. Tesla says it will “fight for the rights of Michigan consumers to be able to choose how they buy cars in Michigan.”

A spokesman says Snyder doesn’t comment on pending lawsuits.

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