Tesla locked in store battles against dealers in six states

Article by Anita Panait, on March 8, 2014

The state legislative battles between Tesla Motors Inc. and dealers continue to rage on and results could be mixed. For instance, a pro-Tesla bill in Arizona that would release the EV maker from the state's ban on manufacturer-owned dealerships has not moved. The conflict is set to continue after Tesla announced that Arizona is being considered as one of the locations being considered for the carmaker’s $5 billion gigafactory.

On the other hand, a Tesla-backed bill in Georgia might not be able to meet a legislative deadline to move forward. In Washington, Tesla and dealers have compromised. The amended bill, once adopted, will enable Tesla to freely operate and even expand in the state. Tesla has been meeting opposition from dealers in several states due its direct-selling model, which is claimed to be violating franchise and consumer laws.

Dealers contend that Tesla should comply with the same rules that other carmakers follow, fearing that the EV maker’s stores might pave way for other vehicle manufacturers to sell directly to consumers, instead of passing through them. "We have strong feelings about keeping the two separate, manufacturers and dealers," said Bobbi Sparrow, president of the Arizona Automobile Dealers Association.

Tesla executives, however, said that their stores are operating legally and that they aren’t trying to overturn the franchised dealer system. They also contend that the EV maker will collapse unless allowed to operate its own retail network. "We just want to be able to give life to this technology -- we're not on a holy mission here," said Diarmuid O'Connell, Tesla vice president of business development.

"We'll fight them everywhere we have to, but we're not out to overturn the system." Tesla-related legislations are presently active in at least six states like Arizona, Georgia and Washington, Ohio, New York and Massachusetts.

Last year, Tesla went toe-to-toe against dealers in a number of states like Massachusetts, New York, Texas, North Carolina, Minnesota and Virginia. While Tesla lost in Texas, it managed to hold at bay dealer-backed bills in Minnesota, North Carolina and New York. Tesla also managed to secure court decisions in dealer lawsuits in Massachusetts and New York. Tesla also inked an agreement enabling it to obtain a single dealership license in Virginia.

If you liked the article, share on:

Topics: tesla, dealer

Comments

Recommended

Renault Chairman and CEO Carlos Ghosn inaugurated the all-new Alpine A110 production line. This inauguration was attended by the Minister for Economy and Finance of France, Bruno Le Maire, with...
by - December 17, 2017
TOYOTA GAZOO Racing revealed that it will be participating in the 2018 Tokyo Auto Salon with the theme “Meister's Workshop.” The company will showcase models that have been part of...
by - December 16, 2017
Infiniti has commenced sales of the new 2018 Infiniti QX80 full-size luxury sports utility vehicle. Aside from the standard specs and optional features, potential customers would want to know how...
by - December 15, 2017
If there is one thing that Pagani Automobili and Fiat have in common, it is the fact that they are Italian companies that build and assemble vehicles. There is currently...
by - December 15, 2017
It’s Star Wars fever once again, and the second installation of the trilogy sequel -- “Star Wars: The Last Jedi” -- is finally hitting theaters. Avid fans of the franchise...
by - December 15, 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