Tesla Could Take Dealership Fight To D.C.

Auto dealerships have been longstanding powerhouses in state capitals across the nation, but the tides may be turning thanks to Tesla. But the progress to establish company-owned Tesla stores may not be going fast for Elon Musk, who is considering a national-level debate about how “free” the free-market for cars really is.

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Texas Car Dealer Argues For Tesla’s Direct Sales Model

You would think that states would welcome a new car company and the jobs it brings with open arms. But well-established car dealership lobbying groups have been fighting to keep Tesla’s direct sales model out of their states, including Texas. But one former Texas car dealer took to the pages of his local newspaper to argue that Tesla should be allowed to sell their cars directly to customers.

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Tesla Lawsuit Over Massachusetts Dealerships Dismissed A Second Time

Tesla Motors is unlike many car companies not just because of what they sell, but how they sell it. Tesla does not have a traditional franchise dealership structure like many large automakers, instead selling cars directly to the consumer. Some state dealership lobbies have sued to stop Tesla from pursuing this business model. Dealers in Massachusetts have had a lawsuit to close a Tesla store dismissed for a second time.

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Elon Musk Steps Up To Defend Tesla Dealership Program

It recently came to light that Tesla Motors was coming under fire for opening several company-owned dealerships in areas like Boston and New York City. This has traditional franchise dealership associations up in arms, with lawsuits flying Tesla’s way. Elon Musk, chairman and CEO of the electric automaker, has taken to his blog to explain why Tesla Motors must sell cars differently.

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