Tesla poised to open first standalone gallery in Michigan

DETROIT -- Tesla Inc. has opened its first brick-and-mortar service center in Michigan — and is preparing an adjacent Tesla Gallery — months after a legal victory gave the automaker a foothold in a state where its operations were previously barred.

The building, located 41 miles northwest of Detroit in Clarkston, Mich., features prominent Tesla signage, "Coming soon" decals and a parking lot filled with more than a dozen luxury electric vehicles.

The service center has been open since early March, offering software diagnostics and resolutions, hardware adjustments and parts replacements, according to a Tesla spokesman. Customers can schedule service appointments online, on their Tesla app or in person.

A sign on a window this month informed visitors of a new touch-free service experience in light of the coronavirus pandemic, allowing customers to scan a QR code to check in for an appointment. A table near the front of the service center had a sheet with further safety instructions and a bottle of hand sanitizer.

The spokesman did not provide an opening date for the gallery. Michigan remains under a stay-at-home order because of the coronavirus pandemic until May 28, and auto sales have been allowed online only.

When Tesla's gallery opens, customers can learn more about products and test drive vehicles, although they can't make direct purchases.

The service center is Tesla's first in the state. The nearest location previously was in Toledo, Ohio. Tesla has operated a gallery location at Somerset Collection, a mall in suburban Detroit, since Oct. 2017.

Tesla in January scored a legal victory when it reached a settlement with the State of Michigan that allows it to sell and service its electric vehicles in the state, albeit through a subsidiary.

The stipulation says Tesla may "operate under existing Michigan law; sell cars to Michigan customers as long as the sales contract indicates the sale took place in a state other than Michigan; and, indirectly own service and repair facilities in Michigan through a subsidiary, Tesla Michigan."

Under the agreement, filed in U.S. District Court, Tesla can operate galleries in Michigan to "educate customers and facilitate transactions out-of-state." Gallery employees can conduct demonstration drives, discuss prices, service, financing, leasing and trade-ins with potential customers and facilitate "ordering and purchase of a vehicle for which legal title transfers out-of-state."

The spokesman did not say if, or where, the automaker planned additional galleries or service centers in Michigan.