Tesla sues Michigan over ban on selling cars directly to customers

State law has prevented the electric vehicle manufacturer from selling cars without franchised dealers, arguing that it is 'entitled to a vehicle dealer license'

Tesla is to sue Michigan governor Rick Snyder and other state officials in federal court over the state's refusal to allow the company to sell its luxury electric cars directly to customers.

The suit at the US district court in Michigan comes days after the state rejected the electric vehicle manufacturer's application to directly sell vehicles to consumers. Unlike other automakers, Tesla does not sell vehicles through franchised dealers. Tesla's suit says it is seeking on an expedited basis an order that it is "entitled to a vehicle dealer license".