Washington state officially approves Tesla’s direct-sales model

Article by Christian Andrei, 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:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
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