After a number of failed attempts, Tesla finally gets an Arizona dealership license by winning a court battle that allows them to sell directly to consumers. The automotive dealer license is a standard license traditional automotive dealerships are required to hold in order to sell vehicles.
Late last year, the DMV issued a dealer license to Tesla, which had only been approved last week after a Maricopa County administrative law judge confirmed that the process for blocking such a license from the Arizona Department of Transportation did not apply to Tesla in the first place.
After claiming the license, the electric automaker will now be able to conduct test drives and sell vehicles out of their service centers and the gallery they are currently operating in Phoenix.
Tesla, California-based electric automaker is known for electric car models such as the Model S and Model X. The company has been fighting in several states against laws that prohibited them from selling directly to consumers as a dealer for a while now.
Early on, Tesla actually believed that a supporting law prohibited direct sales to customers even with the dealer license so the clarification from the judge that direct sales would be allowed with a run of the mill automotive dealer license came as a relief. After multiple attempts by Tesla to try and change the state law, they finally won.
Before being granted the dealer license, Tesla could not take customers for test drives or discussions regarding pricing and options. This means that buyers had to purchase out of the state or be referred to the Tesla website where they could order online then the car will be delivered to their state. But not everyone is into buying cars online without test driving one first. Thanks to the dealer license for taking out that unnecessary barrier, as it is now less of a struggle for consumers to determine whether a Tesla is for them with the help of test drive and discussions with a salesperson.
Getting past the Arizona hurdle is a major step forward for Tesla, and the company is now preparing to do the same in Louisiana, Texas, and Connecticut. As with a handful of other states, all signs point to Connecticut coming around in light of new budget cuts that make the prospect of additional income from new Tesla operations and sales in the state a lucrative opportunity.
So far, Tesla has seen victories in the past few months with Wyoming, which moved to allow direct sales to consumers, while Alabama inches towards a more progressive stance. However, the electric manufacturer is still trying to overturn sales bans in Texas and Connecticut according to Electrek reports.