Tesla expands footprint, wins right to sell cars in Michigan

In a move that will expand its presence on the home turf of auto industry leaders such as Ford and General Motors, electric car maker Tesla has finally won the right to sell its vehicles in the state of Michigan.

Until now, Tesla had not been allowed to sell its Model 3, Model S and Model X vehicles in the state that for more than a century has been synonymous with the U.S auto industry. The company had been prevented from selling cars in Michigan due to a law that said carmakers could only sell their cars in the state through independently-owned vehicle dealerships. Tesla owns all of it own stores, which the company calls showrooms.

But a settlement to a court case between Tesla and the state of Michigan announced on Wednesday means that Michigan residents can now buy a Tesla without having leave the state to make their purchase. The office of Michigan Attorney General Dana Nessel announced the settlement that will allow Tesla to sell its cars directly to customers in the state.

Tesla sued to overturn the law in 2016. In addition to not being able to sell its cars directly in Michigan, employees at Tesla’s single showroom in the state couldn’t discuss vehicle financing or leasing options, nor provide vehicle service to customers.

That means that anyone in Michigan who wanted to buy a Tesla, either online or in person, had to travel to another state to take delivery of their car and have it serviced. Those cars’ titles also had to be registered outside of Michigan. The car owners then could choose whether or not to register their car with Michigan’s secretary of state office.

As part of the settlement, customers who purchase a Tesla within Michigan will still initially have to title their cars in another state before registering their vehicles in Michigan.

A Tesla spokesperson said the company didn’t have any comments about how soon it may expand its showroom footprint within Michigan.