The federal lawsuit seeks a declaratory judgment that the 2014 “anti-Tesla” law is unconstitutional and asks for an injunction to prevent its enforcement.

The Michigan Department of State last week denied Tesla’s application for a dealer license to sell to consumers, citing the law, which is backed by big auto companies and their dealerships. It has not decided on Tesla’s bid to register a vehicle repair facility in the state, which is home to the Detroit Big Three carmakers.

“The sole purpose for applying (the law) to a non-franchising manufacturer like Tesla is to insulate Michigan’s entrenched automobile dealers and manufacturers from competition,” Tesla said in the lawsuit. “This is not a legitimate government interest under the U.S. Constitution.”

In 2014, Snyder and the GOP-controlled legislature amended state law to clarify that car companies can sell only through franchised dealers. Tesla said it was a monopolistic strike at the fledgling company, which has no traditional dealerships.

 

Tesla sued Michigan Gov. Rick Snyder (R) and other state officials Thursday, challenging a Michigan law that ensures automakers can sell only through independent, franchised dealerships and not directly to customers.