World News

Michigan, Tesla reach agreement for direct car delivery: source

By Joseph White

(Reuters) – Tesla Inc <TSLA.O> has reached a settlement with Michigan to allow the electric-car maker to directly deliver its vehicles to customers in the state, a person familiar with the agreement said on Tuesday.

The company will be able to deliver vehicles within Michigan, but will have to issue titles for the vehicles in another state, which the customers can then transfer to Michigan, the person said.

Tesla sued Michigan officials in 2016 after the state refused to allow the company to sell cars directly to consumers instead of through franchised dealerships.

(Reporting by Joe White and Amal S; Editing by Maju Samuel and Arun Koyyur)