Tesla Motors co-founder and CEO Elon Musk spoke in Detroit in January 2015.

DETROIT, MI - Michigan's law requiring motor vehicles to be sold only through franchised dealer networks likely hurts both competition and consumers, according to three members of the Federal Trade Commission.

The FTC senior staff members said as much in a 10-page response to a request by State Sen. Darwin Booher, R-Evart, who was seeking comment on Senate Bill 248, which he introduced April 15 in Lansing.

"FTC staff offer no opinion on whether automobile distribution through independent dealerships is superior or inferior to direct distribution by manufacturers," the letter states. "Rather, staff's principal observation is that consumers are the ones best situated to choose for themselves both the vehicles they want to buy and how they want to buy them."

Booher's bill, which has been referred to committee, would allow manufacturers of "autocycles" to sell directly to consumers in certain circumstances.

The bill is in response to Elio Motors' plans to begin building its low-cost, three-wheeled vehicles at a former General Motors Plant in Shreveport, La. beginning in 2016. The legislation would eliminate an obstacle for Elio to sell in Michigan.

That obstacle has not been removed for electric carmaker Tesla Motors, however, the FTC staff notes.

In fact, the direct-sales obstacle for Tesla in Michigan was strengthened last October, the FTC letter notes. That's when the state legislature easily passed and Gov. Rick Snyder subsequently signed a law that strengthens a ban on automobile manufacturers from selling directly to consumers in the state.

A message seeking comment from Booher was left Tuesday morning. At an event in Detroit Monday, Snyder told the media he had not yet seen the FTC letter.

Tesla, which sells its cars directly to consumers, often using mall storefronts to do so in the some 20 states where it's allowed to, has maintained that Michigan and states where direct-to-consumer auto sales are banned are simply protecting dealership networks.

On Monday, the Palo Alto, Calif.-based company posted this tweet in reaction to the FTC's letter:

A spokeswoman for Tesla could not immediately be reached for comment Tuesday.

Tesla has been gaining some ground in the U.S. as of late in terms of reversing some of the laws it sees as protectionist for car dealers.

On Tuesday, Maryland Gov. Larry Hogan signed a bill that allows Tesla to sell their vehicles directly to consumers beginning in October, according to the International Business Times.

In March, New Jersey governor Chris Christie signed a bill that overhauled the Garden State's auto dealership laws, including allowing direct sales by automakers with zero-emissions vehicles. The law also requires Tesla to maintain a site where the company's customers can get their vehicles serviced.

Meanwhile, Tesla announced last week it had acquired Cascade Township-based Rivera Tool, LLC.

The West Michigan company, which has about 100 employees, will help Tesla streamline production as prepares to introduce its Model X electric crossover.

Related: Tesla acquisition revives hope at West Michigan tool and die maker

Tesla plans to retain most of the workers, and will rename the company Tesla Tool and Die Factory, according to The Detroit News. Financials surrounding the deal weren't disclosed.

Company co-founder and CEO Elon Musk has said the company, which produces its Model S electric sedan at its main assembly site in Fremont, Calif., is also keen on bringing a smaller and more affordable electric car to the market.

Tesla reported last week a first quarter loss of $154 million. Last January, Musk told reporters in Detroit the electric automaker is not likely to be profitable by traditional measures until 2020.

Musk said Tesla has a negative cash-flow because it's scaling up production, while also investing in its supercharger network.

Musk said he expects the company to return to profitability in 2020, when its smaller, more-affordable Model 3 is in full production.

At the same time, Musk said the company hopes to push its total vehicle volume up to 500,000 units by 2020, and to be selling "a few million" units by 2025.

David Muller is the automotive and business reporter for MLive Media Group in Detroit. Email him at dmuller@mlive.com or follow him on Twitter