The company announced in December 2015 that it will be not take part in the NAISAS 2016
Published By: Eunice Gettys on January 11, 2017 08:24 am EST
The North American International Auto Show (NAIAS), also known as the Detroit Auto Show, is the most popular event for new automobiles in the US. Almost every car manufacturer participates in the prestigious Auto Show, attracting thousands of guests from across globe to showcase new technologies in the industry.
However, surprisingly, the American darling Tesla Motors Inc (NASDAQ:TSLA) did not take part in the show this year. The company announced in December 2015 that it will be not take part in the NAISAS 2016 despite the launch of its all-electric SUV, the Model X
When asked why the electric vehicle (EV) maker refused to participate, a NAIAS spokesperson said that Tesla did not have any new vehicle to unveil at the event. We are already aware that Tesla prefers to do private events for product launches and does not take auto shows that seriously. Yet, it has been using them to promote its vehicles to reach out to more potential customers.
In November, Tesla joined the LA Auto Show to showcase the Model X and Mobile Design Studio. Before that, it participated in motor shows in Canada, China, Geneva, Italy, and Paris during 2016 to keep promoting its vehicles in those markets.
Michigan, conversely, has one of the toughest dealership laws for car manufactures like Tesla that are looking to sell their vehicles directly to customers. While it is not the only state that forbids sales of vehicles by manufacturers, it is the only place on earth where Tesla cannot offer test drives to potential customers.
If the existing law remains unchanged, we doubt that Tesla will participate in the Detroit Auto Show anytime in the near future. Ahead of the launch of the Model 3, the company is fighting a battle in court with Michigan car dealers and lawmakers.
While the company claims that the law is a way to “reward the dealers’ generous lobbying efforts by handing them a monopoly,” the state lawmakers urge that the company’s claims are baseless as it has wrongly interpreted the law.