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Tesla can sell vehicles in Michigan under legal settlement

The deal would end a Tesla lawsuit against the state over a law that banned company-owned stores.
Credit: AP
FILE - In this Nov. 10, 2019, file photo the company logo shines off the grille of an unsold 2020 Model X at a Tesla dealership in Littleton, Colo. Tesla will be able to sell and service its vehicles in the back yard of Detroit’s three automakers under a lawsuit settlement, a person briefed on the matter says. The settlement between the office of Michigan Attorney General Dana Nessel and Tesla is likely to be announced Wednesday, Jan. 22, 2020, says the person who asked not to be identified because terms of the deal haven’t been made public. (AP Photo/David Zalubowski, File)

DETROIT — (AP) - Tesla will be able to sell and service its vehicles in Michigan under a lawsuit settlement between the automaker and the state. 

A person briefed on the matter says the settlement is likely to be announced Wednesday. The person asked not to be identified because terms of the deal haven’t yet been made public. 

The deal would end a Tesla lawsuit against the state over a law that banned company-owned stores and stopped Tesla from opening service centers in the backyard of Detroit's three automakers. 

Michigan Attorney General Dana Nessel's office today released the following statement on the lawsuit: 

“Today the state of Michigan defendants Secretary of State Jocelyn Benson and Attorney General Dana Nessel filed a stipulation to dismiss with Tesla that recognizes that any Michigan resident may lawfully buy a Tesla and have it serviced in Michigan. The stipulation acknowledges that Tesla may: operate under existing Michigan law; sell cars to Michigan customers as long as the sales contract indicates the sale took place in a state other than Michigan; and, indirectly own service and repair facilities in Michigan through a subsidiary, Tesla Michigan.”

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