Washington state officially approves Tesla’s direct-sales model

Article by Christian A., on April 10, 2014

Tesla Motors Inc. can now continue its direct-sales operations and even expand in Washington state after Gov. Jay Inslee signed a bill allowing the electric-vehicle maker to continue selling its cars directly to customer s instead of franchised dealerships in the state. Tesla has two stores in Seattle and Bellevue.

Tesla said in a statement that the legislation should serve as a “model solution” for other states where the EV maker have been facing stiff opposition from local dealers.

Tesla spokesman Patrick Jones told Automotive News in an e-mail that the carmaker thanks Gov. Inslee and the Washington State Legislature for supporting “a culture of innovation” and making the right decision for consumers. Jones said the legislation will enable the carmaker to continue its mission of stimulating the EV market by interacting directly with consumers.

According to Bryan Imai, senior general counsel at the Washington State Auto Dealer Association, remarked that bill provisions ensure a fair balance between dealers and carmakers. The bill toughens existing laws between carmakers and state dealers that prevent other carmakers from selling directly to consumers.

Under the bill, a carmaker that held a dealership license as of Jan. 1, 2014, would be exempt from the ban on carmaker ownership, Imai noting that Tesla held a dealership license in Washington as of the date. The wording of the bill prevents other startup carmakers from setting up direct-sales operations in the state.

The National Automobile Dealers Association, said in an e-mailed statement to Automotive News, reiterated that auto sales should be through independent franchised new-car dealers. NADA said that it is up to each state to decide whether Tesla or any carmaker is complying with laws that regulate sale of new vehicles.

If you liked the article, share on:

Pin It

Comments

Recommended

The German automaker Volkswagen is now racing against time to come up with electric vehicles that will be able to pass Europe and China's stringent emission standard. The car company...
by - March 22, 2017
In the last few years, the advent of compact sedans and crossovers has become quite overwhelming. Even two of the major manufacturers that “started it all” have to admit that...
by - March 22, 2017
By 2020, Audi will be throwing out not just one but three fully-electric vehicles. One of which will be pitted against the BMW i8. This new information was revealed by...
by - March 22, 2017
Tesla confirms that they will be discontinuing the fairly new Model S 60 and 60D sedans as soon as next month. Why, you ask? The company wants to make enough...
by - March 22, 2017
Have you ever wondered how much luxury car companies profit from every vehicle they sell? And which companies profit more? Well, in 2016, Porsche sold over 238,000 vehicles. That is...
by - March 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries