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Tesla Reaches Deal Clearing Way for Michigan Service Centers

  • Settlement of sales-ban suit is expected as soon as Wednesday
  • Michigan Tesla owners typically drive to Ohio to service cars
Teslas on display at a gallery and service center in Paramus, New Jersey.
Teslas on display at a gallery and service center in Paramus, New Jersey.Photographer: Ron Antonelli/Bloomberg
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Tesla Inc. has reached a settlement with the state of Michigan over its federal lawsuit challenging a state ban on direct-to-consumer sales, according to people familiar with the matter.

In a partial victory for Tesla, the accord clears the way for the electric-car maker to open service centers in the state through a subsidiary, said one of the people, who asked not to be identified ahead of a filing in U.S. District Court that’s expected as soon as Wednesday. Customers will still have to title their cars in another state and transfer them to Michigan.