Tesla gets red light from Michigan's governor

Unlike other car companies who use franchised dealers, Tesla sells its cars directly to consumers at their stores.

But that's not the case in states like Michigan, where a new law prevents Tesla from selling cars the way it wants to, reports CBS News correspondent Elaine Quijano.

It began last week, when Gov. Rick Snyder signed a law clarifying that automakers were not allowed to sell vehicles "directly to a retail customer other than through franchised dealers."

This business model has placed it at odds with other car companies that sell vehicles through traditional car dealerships.

"Tesla's business model is to not have franchise car dealers like every other car maker does," AutoTrader.com senior analyst Michelle Krebs said. "The car dealers across the country are fighting against this Tesla model because it threatens their livelihood."

In a video address, Gov. Snyder said that although the law is controversial, it has strong legislative support.

"I hope they'll take up that concern and have a discussion in the future about what could be the best answers for Michigan citizens," Snyder said.

Tesla disagrees and says the proposal was unclear and made at the last minute.

In a statement to "CBS This Morning," the company said: "...Tesla has every intention of taking the governor up on his invitation ... to come to Michigan to debate this issue in a public forum in the light of day."

But Michigan isn't the first place where Tesla has been stopped its tracks.

It's now one of six states that have enacted laws banning Tesla from operating under its current business model. Another five states are debating legislation that could further protect car dealers.

"They've spent a lot of money building brick and mortar dealerships," Krebs said. "The dealers pretty much wrote the franchise laws in this country, so they're fighting against having factory owned stores."

Customers wishing to purchase Tesla's electric vehicles in states where direct sales are banned will be forced to travel out of state to make their purchases.

As for Tesla, a company with ambitious expansion plans, they plan to fight the legislation so customers are able to purchase their cars without any inconvenience.