Will Michigan Win An Award For Blocking Tesla Motors?

Michigan has been nominated for an award for blocking Tesla Motors from conducting direct-to-consumer sales in their state. The first-ever Luddite awards decided to include Michigan in its initial list of nominees because legislation passed this year in Michigan which bars Tesla Motors from selling vehicles in their state. However, these awards aren’t meant to be honorable. The Information Technology and Innovation Foundation created the awards to point out what they feel are shortcomings by an organization or group. In the case of Michigan, they won the award along with Arizona, New Jersey and Texas. According to an official release from the ITIF, the awards are given to those the ITIF labels so-called “Neo-Luddites.” The press release describes them by saying, ” These “neo-Luddites” have worked to convince the public and policymakers that technological innovation is something to be feared and contained.” Other notable nominees include the National Rifle Association for not accepting the concept of so-called “Smart Guns,” the French Government for preventing Amazon from offering free shipping on books, and the states of Virginia and Nevada for cracking down on ride-sharing companies such as Uber and Lyft. Robert Atkinson, President of the ITIF further explained why he feels that the Luddites is an important awards program. In a statement, Atkinson said, “Innovation and technological development are absolutely essential to achieving this goal, but increasingly interests are uniting to thwart technology at every corner. By highlighting the most egregious examples of these efforts we hope to better educate the public and policy makers on why Luddite opposition is profoundly mistaken.”

The award nomination for Michigan comes just three months after Governor Rick Synder signed a bill that prevented Tesla Motors from operating in their state. The bill, which faced a slew of scrutiny, was a reaffirmation that direct-to-consumer automotive sales are prohibited in the Great Lakes state. Soon after the bill was signed, General Motors, which is headquartered in Michigan, sounded their support for the legislation. In a short statement, GM simply said, “We believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan; therefore, we encourage Governor Snyder to sign it.” Tesla Motors fired back. The electric car company responded to House Bill 5606 in a statement, saying, “What’s good for GM’s customers is not necessarily good for Tesla’s customers. GM distorts the purpose of the franchise laws which are in place not to cement a monopoly for franchised dealers, but rather to prevent companies with existing franchises from unfairly competing against them.” It’s common sense that Tesla would be dissatisfied with the ruling, however, for the time being, their organization cannot sell direct-to-consumers in Michigan.

Tesla Motors has received public support from Federal Trade Commission Officials, the White House and even former GM CEO, Dan Akerson. Tesla generates a lot of media attention, making headlines around the world weekly. Do you think that Tesla will eventually be allowed to sell direct-to-consumers in every state and territory in the United States? If Tesla offered franchise dealership opportunities, would you be interested? Finally, would you accept the opportunity to sell only used Tesla vehicles at your store?