Bill To Ban Tesla Dealerships Struck Down


tesla-storeA group of automobile dealers represented by the Minnesota Automobile Dealers Association attempted to block Tesla Motors from opening their own stores. They consider Tesla Motors’ method of exclusively selling automobiles online through factory-owned Tesla Motors stores “highly threatening” to the lock that they have on automobile sales. Despite their best efforts though, their bill banning Tesla stores was defeated…for now.

The effort was in the form of a bill, but it was defeated in the Minnesota senate. It was an amendment to ban automobile manufacturers from opening their own dealerships, under any circumstances. Many states have similar laws, and Tesla has also fought (and won) this same battle in Massachusetts.

Most state laws in the U.S prohibit manufacturers from opening dealerships that compete with others which sell the same cars. Tesla Motors, though, has no franchised dealers, so they say they are complying with all state laws governing car sales.

The senate did not approve the bill. However the state Assembly is holding on its own version of the bill, though Elon Musk has also written a spirited defense of Tesla’s business practices. So this battle is far from over.

Source: Green Car Reports | Image: Nicholas Fluery

About the Author

loves attending and writing about/photographing events, and he writes on CleanTechnica, Gas2, Kleef&Co, and Green Building Elements. He has a keen interest in physics-intensive topics such as electricity generation, automobiles, refrigeration and air conditioning technology, energy storage, and geography.
  • Jo Borras

    The main point here is that Tesla has offered no franchise stores for sale, so they aren’t violating franchise laws. It’s a scary precedent for car dealers and echoes the way Steve Jobs royally f’ed over the Apple Specialist stores that kept his company alive before he discovered the economic miracles of forced Chinese sweatshop labor.

    In other news Steve Jobs was a douchebag.

  • Jon Kannegaard

    Recent Planet Money Episode on laws protecting dealerships from competition.  Origin: the 20’s when manufacturers held the aces. Now the dealers have the best hand and don’t want that to change.

  • Pingback: North Carolina wil directe verkoop Tesla aan consument verbieden | I-kloon()