General Motors (GM), the largest automaker in the U.S., released a statement Tuesday urging Michigan Governor Rick Snyder to sign legislation that California-based electric car maker Tesla Motors (TSLA) calls “anti-Tesla.”
“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,” GM said in its statement.
Tesla strongly rejected GM’s stance on the measure.
“What’s good for GM’s customers is not necessarily good for Tesla’s customers. What’s good for gasoline cars is not necessarily good for electric cars. Tesla is selling a new product with a new technology,” the electric car maker said in a statement.
“The evidence is overwhelming that a traditional dealer-based approach does not work for electric cars. Moreover, GM distorts the purpose of the franchise laws (including in Michigan), 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. Tesla has never used franchised dealers, so these concerns are simply irrelevant.”
Governor Snyder, who has not yet announced if he will veto the House Bill 5606 or sign it into law, has until the end of Tuesday to make a decision on a bill that if signed would ban Tesla from selling cars through its network of company owned showrooms, rather than through independent dealerships in Michigan.
TSLA rose $4.10, or 1.78%, in late trading on the Nasdaq.
Update: Michigan has enacted legislation that bans the Palo Alto, California-based company from selling its electric cars directly to consumers. Gov. Rick Snyder signed the measure Tuesday blocking Tesla from bypassing dealerships.