Tesla Opens First Showroom In Michigan

12 months ago by Steven Loveday 34

Tesla gallery opens in Michigan

Tesla gallery opens in Michigan

Despite the fact that it is illegal for Tesla to sell its cars in Michigan, the company is showing its commitment to the cause, and has opened a gallery in the state. Detroit is the nation’s hub for the Big Three automakers, and of the three, GM has been duking it out and making it increasingly difficult for Tesla for some time. Of all of the states that are challenging Tesla’s sales methods, Michigan is by far the biggest roadblock.

Tesla Has About 100 Stores and Galleries Throughout the U.S., over one-quarter of which are in California.

Tesla has about 100 Stores and Galleries Throughout the U.S., over one-quarter of which are in California.

Tesla opened the new gallery in Troy, Michigan, a wealthy area north of Detroit. The 700-square-foot gallery is located inside of a Nordstrom store at the upscale Somerset Collection shopping mall.

This is not the first time that Tesla has worked with Nordstrom. Since June, three Nordstrom stores have adopted Tesla showrooms. The showroom will have Model S and Model X vehicles available for viewing, and personnel on hand to educate consumers. Eventually, it will showcase the Model 3. Hopefully, if Tesla makes any ground on the right to sell, by the time the Model 3 is actually available to the general public, the gallery will be able to facilitate Model 3 sales.

Tesla didn’t give any advance indication that the store was arriving. The company doesn’t advertise. Instead, Tesla waited until the busiest shopping time of the year and essentially “showed up” in the mall. Nothing like a bit of surprise controversy to get all of the dealership gurus and union members in a frenzy.

Tesla is surely active in Michigan. The company purchased one of its suppliers, Grand Rapid, Michigan-based Riviera Tool, along with its 100 employees. The company renamed it Tesla Tool & Die. Tesla also works with several other suppliers in Michigan, so it’s not as if the company isn’t supportive.

Typical Tesla store showroom (October 2016)

Typical Tesla store showroom (October 2016)

Tesla is allowed to show the vehicles and discuss them with people. This is critical for the company, since it doesn’t advertise in the traditional sense. Also important is that interested buyers understand all-electric technology, charging, Autopilot, and autonomous driving. However, the representatives can’t talk about the price of the vehicles or offer test drives. They can simply direct consumers to the company’s website or to the nearest “out of state” dealers.

Tesla currently can’t sell its cars in multiple U.S. states, simply due to the fact that it uses direct sales and isn’t willing to follow the traditional dealership model. Tesla doesn’t plan to use a “middle man.” Tesla has tried to open its own, company-owned and managed independent “dealership” in Michigan, but was denied. In fact, Michigan is one of the only states that has gone so far as changing legislation to further assure that Tesla will have no ground to stand on. After repeated attempts to solve the problems, Tesla has filed a lawsuit against the state.

Source: Fortune

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34 responses to "Tesla Opens First Showroom In Michigan"

  1. Miggy says:

    Good to see. Tesla will win, it just may take some time.

    1. kubel says:

      Don’t hold your breath. So long as the state has the power to ban sales, businesses will bribe (aka lobby) politicians to ban their competition. This is corporatism and crony capitalism at work.

      The key is removing this power from the state. No power, no lobby, no stupid laws like this.

      1. jimjonjack says:

        The ICE Auto Companies & are the “RACKETEERS” they if any one should be OUTLAWED ! They Are “OUTLAWS” They are Breaking all the Laws of FREE ENTERPRISE ..They have NO RIGHT To do this and get away with what they are doing To TESLA…They Should all BE JAILED STARTING WITH THE JUDGES THAT ARE ALL0WING THIS!!@!!! THIS IS A SHAM !!!

        1. Yogurt says:

          I hate to tell you and your all caps you are wrong but you are wrong…

          The ICE companies are not responsible for the horrible laws forcing companies to use dealerships…

          In fact the ICE do not want all of the state laws that the dealearships paid state reps to get passed…

          GM and the rest of the ICE companies probably hate dealerships more than anyone since they skim there profits and give them a bad name…

          As much as I dislike dealerships I dont blame GM for fighting Tesla since Tesla not having to go through a dealership is a huge competive advantage…

          That said I hope GM loses and the dealership model crumbles so consumers can get fair prices…

        2. Dick Weed says:

          The manufacturers don’t like the dealers either. Porsche tried to bypass theirs in the 1980’s, were sued and lost. If Tesla is successful you can bet all the carmakers will open factory stores once their dealer contracts expire. It’s just better margin for the manufacturers. No middlemen.

      2. SparkEV says:

        True about removing power from the state. However, if you consider Uber and Airbnb going against establishment, Tesla and other enterprises have a shot.

        Another interesting term is crony capitalism. Cronyism is using the government force to do stuff companies don’t want to do (like socialism). Oxymoron.

        1. TomArt says:

          ??? No. That doesn’t even make sense. Crony Capitalism is businesses getting people in gov’t on their side to get rules and laws favorable for those businesses. It typically involves tons of money in lobbying and campaign contributions, or getting former executives from that sector into high-ranking gov’t positions in the corresponding agency responsible for the rules.

          1. SparkEV says:

            The very definition of socialism is government is forcing you to do stuff. If you consider capitalism as opposite end from socialism, getting the government to do stuff and calling it capitalism is oxymoron.

            1. floydboy says:

              Uhhh…no!

    2. jimijonjack says:

      AMERICA SHOULD HIDE IT’S FACE IN SHAME! FOR DOING THIS TO AN ALL AMERICAN COMPANY THAT HAS MADE SUCH ASTRONOMICAL BREAKTHROUGHS IN ELECTRIC CARS ..,INSTEAD THEY CONDEMN THEM & DO EVERYTHING AGAINST THE LAW TO TRY STOP THEM ..FREE COUNTRY .L M A 0.. MORE DICTATORSHIP THAN RUSSIA …

      1. Dick Weed says:

        Don’t hold America at fault for an archaic dealer organizational system established in the 1930’s. It’s dying. It’s just not dying fast enough.

  2. Jake Brake says:

    This is an excellent way to protest, educate and advertise!

  3. copying from the other source – https://electrek.co/2016/12/02/tesla-michigans-direct-sales-law-showroom/ some comments – mine and a few before:

    Go all-out on the “this is a vehicle you cannot buy” shtick;
    “Please ignore the vehicle in the middle of the room. It is emphatically not for sale. Definitely not a vehicle we sell that can do [specs]. No way you can buy one of these from us unless you buy it out-of-state. Why, you’d have to go to this Tesla store just over the border at [address here].”
    ——————-
    “Tesla – so good it’s illegal.”
    ——————-
    Wallpaper Slogans in the Showroom:

    “We Drove it Here Like We Stole it!”
    “Michigan: Ford Killed SEX, GM is Killing Tesla Sales”
    “First they Crushed the EV1, Now they try to Crush Tesla!”
    “Made in America – Can’t be Sold (or Serviced) in Michigan!”
    “Fastest Accelerating Sedan – Not Made by the Big 3!”
    “This Car can Drive for Free from New York to Los Angeles – Can Your Car do THAT?”
    “We Showed it can go Fast, We Showed it can Go Far, We Showed we could build them, But They Said You Can’t Buy it Here!”
    “Michigan – The Anti-American State Laws Prohibit you Buying this car from us in Michigan!”
    …and so on!

    1. TomArt says:

      I like the first two…so good it’s illegal, and driving like they stole it – priceless!

  4. EVA-01 says:

    Please correct the article when it comes to calling Tesla’s stores “dealerships”.

    They are not dealerships, they are stores. I know that the word “dealer” has been with people for the past 100 years but this needs to change. Please don’t be lazy and refer to Tesla stores as Tesla dealerships.

    1. Dick Weed says:

      Tesla has showrooms or galleries. Nowhere in the article are they called dealerships.

  5. Mark says:

    Troy is wealthy, but it is not trendy.

    Lots of little towns and cities in metro Detroit are trendy. Troy is not one of them.

    1. Kdawg says:

      Maybe that’s because Troy was purposely designed to not have a “downtown”. At least that’s what my friend from Troy tells me.

  6. Steve Martin says:

    I visited the gallery yesterday and sat in the X and chatted with the employees. I have a deposit on the Model 3.

  7. TM says:

    Why can’t they test drive?
    Can’t sell in Arizona either, but you can test drive.

    1. jimijonjack says:

      THE ICE Makers Are “SCARED S*******” OF Tesla and are going as far as Breaking “ALL LAWS” To Hinder And/0r try to Stop Tesla’s Progress…The People Shall have the last Say., As they Let their Wallets Do The Talking !

  8. William says:

    I wonder about used (pre owned) Tesla Sales. Can used car stealerships sell Tesla model S & model X? Just ship a bunch of these cars with low miles to Tesla certified used car dealers in the area. Where there is a will, there is a way.

    1. TomArt says:

      Interesting question! Wish I knew the answer. Anyone?

  9. Anon says:

    Eat it, GM / Corrupt GOP Run State…

    1. Rightofthepeople says:

      This is a Michigan thing, not a GOP thing. The majority of Democrats in Michigan signed on to the anti-Tesla legislation. This is about the philosophy (of free enterprise) not the political party.

      1. Pushmi-Pullyu says:

        It’s actually just one symptom of how corruption has become so commonplace in American legislatures, both Federal and State, so commonplace and even accepted (!) that we don’t even call it corruption anymore. We just call it “lobbying”.
        😥

        Where are the modern-day muckrakers? We need a Charles Dickens or John Steinbeck for the new generation.

        1. SparkEV says:

          In addition to lobbying, campaign contributions and donations to foundation are couple of more examples. Unfortunately, things will get worse.

  10. Pushmi-Pullyu says:

    Good to see Tesla is pushing back against these protectionist State laws. Eventually, public scrutiny or the courts should end this ridiculous, unethical, and immoral prohibition against Tesla being able to sell cars in a competitive market. (Not a “free” market, a competitive market.)

    1. TomArt says:

      Exactly!

  11. Kdawg says:

    “However, the representatives can’t talk about the price of the vehicles or offer test drives.”
    ——-
    Well at least I’ll be able to see one in the flesh before possibly buying, but a test drive would have been nice.

  12. Bsweet says:

    Tesla really needs to build a store and service center in or around Toledo Ohio it is right on the boarder

  13. John in AA says:

    “Union members” what? Did you mean MADA members?

  14. Wineboy says:

    Pushmi-Pullyu got it right this is the same state that allowed liquor distributors to fight the direct shipment of wine all the way to the Supreme court and lost! Graham vs Heald
    The crony capitalist has no room for competition and would rather waste taxpayers money on impeding and jailing descent.