Michigan Doesn't Allow Tesla Sales, But Keeps Buying More Tesla Stock

Steph Willems
by Steph Willems

Michigan doesn’t want its residents to order a Tesla, but it sees no problem in owning $72 million in stock to bolster its state retirement fund.

According to The Detroit News, the Michigan Department of Treasury bought a further $48 million in Tesla shares in the second quarter of this year, boosting its stake to 339,623 shares — more than triple the amount it owned in March. Meanwhile, Michigan won’t budge on laws that prevent Tesla from selling vehicles in the state.

The State of Michigan Retirement Systems holds about $60 billion in funds to support the retirement pensions of state employees, as well as the police, judiciary, and education sectors. While the Tesla stock makes up just over one-tenth of one percent of the fund, it’s more than double the combined worth of its General Motors and Ford stock.

It’s an awkward position for the state. Michigan keeps Tesla out to protect the Detroit Three, but invests more in Tesla.

In 2014, Michigan passed a law banning the direct sale of automobiles. That means that Tesla, an automaker without a franchised dealer network, can’t court buyers in that state. Allowing it would mean unfair competition for automakers who operate a dealer network, lawmakers claim.

In a statement made to The Detroit News, the Treasury Department’s Bureau of Investments said, “The additional (Tesla) shares did not materially add to the risk of the overall $60 billion investment portfolio.”

Since the passage of the bill, Tesla has fought to persuade the state to allow sales of its vehicles. So far, applications for dealer and service facilities have been stymied by requests for more information.

Political and public sentiment seems to be working in Tesla’s favor, albeit slowly. A bill introduced by State Rep. Aaron Miller (R-Sturgis) seeks to overturn the ban on direct sales, while an interest group called the Michigan Freedom to Buy Coalition wants a legislative solution to Tesla’s plight. Other free-enterprise advocates support the automaker, but its opponents loom large.

The Michigan Automobile Dealers Association, which initiated the 2014 bill, continues to stand its ground. If other automakers can play by the rules, it states, so can Tesla.

Steph Willems
Steph Willems

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  • FOG FOG on Aug 12, 2016

    That is terrible. It's be like a federal government ordering GM to make thousands of Volts and then buying Nissan Leaf's themselves. Oh, wait... I am pretty sure the current administration did exactly that.

  • Brn Brn on Aug 12, 2016

    The Executive Branch and the Legislative Branch don't agree on something???

  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.
  • FormerFF We bought three new and one used car last year, so we won't be visiting any showrooms this year unless a meteor hits one of them. Sorry to hear that Mini has terminated the manual transmission, a Mini could be a fun car to drive with a stick.It appears that 2025 is going to see a significant decrease in the number of models that can be had with a stick. The used car we bought is a Mk 7 GTI with a six speed manual, and my younger daughter and I are enjoying it quite a lot. We'll be hanging on to it for many years.
  • Oberkanone Where is the value here? Magna is assembling the vehicles. The IP is not novel. Just buy the IP at bankruptcy stage for next to nothing.
  • Jalop1991 what, no Turbo trim?
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