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Michigan's New House Bill 6233 Wants To Ban EV Automakers From Doing Business

Michigan politicians are attempting to block new electrical vehicle manufacturers from doing business in the state. Although carefully calibrated to incorporate any type of automobile manufacturing firm, the Michigan"Motor Vehicle Franchise Act" was made especially to prevent Tesla from doing business , a clear favor to the automobile. The law already includes certain restrictions on automobile makers, restrictions that limit their ability to market and support their own vehicles in the nation.

The upside to the bill is that the language leaves room for creative solutions -- such as the 2016 settlement brought by Tesla from the state. The Michigan Attorney General interpreted existing legislation to let Tesla along with other manufacturers certain sales-type actions at gallery locations. These include consumer education about products (for instance, EVs), talks about the price, offering test drives, and talking financing in order to facilitate online orders and shipping. The only restriction was that the transfer of the title of this vehicle had to take place out of state, to comply with present law.

A brand new home bill in Michigan, however, was introduced by Representative Sheppard (R) to amend the legislation so that no maker except Tesla can encourage the earnings or support of their vehicles in Michigan. Although Tesla stands to profit from this, it goes contrary to its core mission and I feel it would actually harm Tesla. The business already gets a whole lot of criticism and outright hate from some of its passionate critics.

The gist of the new bill, House Bill 6233, is any new auto manufacturer -- a business that doesn't yet have a institution in Michigan -- can not come in, set one up, and do business. This is a bold effort to block the sales of electric vehicles from new companies -- whether they be Rivian, Lucid Motors, Xpeng, or a different startup -- to residents in Michigan. You can read the complete bill here.
It Seems Like Tesla Benefits, But It Really Doesn't

Many Tesla fans believe in Tesla's mission, which will be to accelerate the entire world's transition to sustainable energy. In this aspect, the more EV automakers there are, the more merrier. We need more EVs on the road. They save lives. A recent study by the American Lung Association revealed that if automobile sales change fully to EVs by 2045, this could save at least 6,300 American lives -- and also prevent 93,000 asthma attacks -- annually. Even Tesla's CEO, Elon Musk, appreciates other EV manufacturers making a serious and compelling attempt -- who he does not see as real contest for Tesla.



I talked with James Chen, Rivian's Vice President of Public Policy, and he shared his thoughts with me about how irritating this can be. The push for this bill has been blindsided by conventional dealerships that are jeopardized by electrical vehicles.

"That is the franchised dealers hoping to stifle legit contest and prevent the advancement of zero-emissions car technology," Chen told me. Rivian, an independent U.S. manufacturer of all-electric trucks and SUVs would be obstructed from doing business in Michigan when this bill is accepted into law.

The crazy thing is that, here we have an independent private maker -- an American company even -- being obstructed from engaging in the"free market" by a state. Chen explained that the incumbent business interests -- the traders -- are still trying to use legislation to block all new transport technologies. "If the franchise dealer model is indeed great," he asked me about the phone,"why are they fearful of valid competition?"

Chen also elaborated about the focus of the laws. Legislation ought to be focused on the global pandemic and challenging budget difficulties, however the traders are rushing this bill through. Why? "Why are the traders pushing a bill to assimilate economic investment to the country by EV manufacturers?"

It all comes back to money dealers have dropped money with Tesla's business model,"buying directly from the manufacturer and bypassing the trader entirely," and that is their way of attempting to battle back. The dealers will fight -- only because the removal of the middle man would be bad for them.

As for what could be done to help fight this from external -- awareness. It's pretty much all we could do. Letting the voters know what they're voting for and instructing them about the shady backroom dealings that take place between vested interests and the politicians included.

Bonnie Norman, whose role as an early EV adopter (owner of an original Tesla Roadster and also an early investor) desired to lend support to the other EV manufacturers that are doing their part. "While I am surprised to see Michigan playing protectionist games , it is really heartwarming to see numerous Tesla owners jumping in to help shed light on what's going on in the Michigan legislature. The assignment is about accelerating the transition to renewable energy. In the past, EV owners of all brands have proven to assist Tesla in various state conflicts. We'll be present for Rivian, Bollinger, Lucid, and others as they fight to market an American product in america.

"The assignment is all about accelerating the transition to renewable energy. In earlier times EV owners of brands have shown up to assist Tesla in various state conflicts. We'll be there for Rivian, Bollinger, Lucid, along with many others as they struggle to market American-made products in the united states."

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