Tesla Is The Clear Winner in the Battle With Michigan (Seyfarth’s Future of Automotive Series)

The settlement may have longer-term implications for the industry, as well. Although Tesla currently is the only vertically integrated manufacturer selling vehicles in the United States, other market entrants are likely to appear in the coming years, and these new entrants will need to decide how they want to reach consumers. The same day Tesla and Michigan settled their dispute, Karma—a self-described “incubator of emerging technology”—announced that it was joining the Alliance for Automotive Innovation[3] (the entity resulting from the recent combination of The Association of Global Automakers and the Alliance of Automobile Manufacturers). Already under extraordinary competitive pressure to make unprecedented investments in emerging electric and autonomous vehicle technologies, manufacturers will also need to determine how best to bring products incorporating those technologies to market.

Lou Chronowski[4] is a partner in Seyfarth Shaw’s Franchise and Distribution Practice Group and routinely represents automobile manufacturers in disputes with dealers. Seyfarth Shaw did not participate as counsel in this case.


  1. ^ joint stipulation of dismissal (www.michigan.gov)
  2. ^ short press release (www.michigan.gov)
  3. ^ announced that it was joining the Alliance for Automotive Innovation (hub.karmaautomotive.com)
  4. ^ Lou Chronowski (www.seyfarth.com)

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