>Didn’t they sue tesla for offering direct to consumer (read bypassing the dealer network oligopoly) cars?

Call me cynical but given the entrenched and moneyed interests in that state I think you'd be a fool to expect otherwise.

GM and Ford have been trying to shed their dealer networks for the better part of a century, but even in Michigan, dealerships have more lobbying power than they do.

They're obviously not going to stand for Tesla doing what they're banned from doing. Even if they'd rather be doing it themselves.