Electric car maker Tesla Inc. is proceeding with plans to open an auto service center and showroom on Milwaukee's far northwest side — marking the company's first physical presence in Wisconsin.
But, without a change in state law, it won't be a dealership where people can buy cars.
Tesla plans to operate the business at the former home of Schlossman's Power Sports Inc., 12011 W. Silver Spring Drive, according to information filed with the Milwaukee Board of Zoning Appeals.
Tesla is leasing the building, and needs a special use permit to operate at that location, according to the zoning board filing.
The Journal Sentinel in September first revealed Tesla's plans for a service and repair facility based on building permit applications filed with the city Department of Neighborhood Services.
Newer building permit filings show that the 17,600-square-foot building will include a small sales showroom with room for three Tesla models.
Milwaukee attorney Brian Randall, who's representing Tesla on its special use permit application, declined to comment. The application is to undergo board review on Jan. 16.
Tesla sells its electric vehicles directly to consumers rather than using dealers.
But that business model in Wisconsin would require a change in state law that bars direct vehicle sales.
Without a change in state law, the Milwaukee showroom would be just that — a place to show Tesla models to prospective buyers. No car sales would be allowed.
Tesla in 2019 shifted to selling most of its cars through its website.
The company also operates dealerships in states, such as Illinois and Minnesota, that allow vehicles to be sold directly to consumers.
A provision added to Wisconsin's 2019-21 budget that would allow direct vehicle sales was vetoed by Gov. Tony Evers in July.
Evers said that provision was a "payoff" to a legislator whose vote was needed to pass the budget.
The last-minute Tesla provision was aimed at winning the crucial vote of Sen. Chris Kapenga, who had pushed for the measure in the past.
Kapenga, R-Delafield, has said such criticism amounted to "half-truths that were spun together most likely by those who oppose allowing Tesla to sell in this state."
Evers indicated he would consider separate legislation allowing direct vehicle sales.
Kapenga said Thursday that such legislation doesn't currently have enough votes to be sent to the Senate by its Committee on Transportation, Veterans and Military Affairs.
In April, a planned mixed-use development in Wauwatosa that included a Tesla showroom was rejected by city officials partly over concerns that it wouldn't bring enough activity to the site.
Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.
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