Tesla sues Michigan, challenges law requiring dealer sales

Tesla is suing Gov. Rick Snyder and other state officials, challenging a 2014 law that ensures automakers can only sell through franchised dealerships.

The federal lawsuit filed Thursday seeks a declaratory judgment that the "anti-Tesla" law is unconstitutional and an injunction to prevent its enforcement.

The state last week denied Tesla's application for licenses to sell directly to consumers and to service vehicles in Michigan, citing the law that is backed by big auto companies and their dealerships.

Tesla Motors Inc. says it prefers that new legislation be enacted but was told recently by lawmakers that no hearing will be held. Tesla says it will "fight for the rights of Michigan consumers to be able to choose how they buy cars in Michigan."

State officials could not immediately be reached.