Tesla Motors win suit to sell cars direct to the public

Tesla Model S

Tesla has been opening stores in shopping malls across the US. Most states have antiquated laws that prevents auto manufactures from selling direct to consumers thus enforcing that sales are made through an independent dealer.  Of course dealers love this.

Tesla Model S in Bellevue Store - Right window Tesla Model S in Bellevue Store - Driver window Tesla Model S in Bellevue Store - Store FrontAfter opening a store in Natick Mall, Massachusetts, Tesla Motors has been embroiled in a battle to let it sell cars from the store.

Permission was granted for the store to sell vehicles back in December, and now a judge’s dismissal of a dealers’ lawsuit against the company has stepped a further direction in Tesla’s favor.

It all centres on state regulations about the Tesla Store’s legal identity.

Tesla Motors would not be allowed to sell cars itself, directly from the factory. The state requires franchisees to own dealerships, preventing companies from competing unfairly with independently owned dealerships.

Tesla CEO Elon Musk has previously weighed in on the matter, which has reached far beyond Massachusetts. Musk feels that franchised dealers, selling gasoline cars alongside electric vehicles, may not feel incentivized to put time and effort into electric vehicles–just in case they harm the dealer’s profits from regular vehicles.

Musk also says his stores offer a more pleasant, educational experience than traditional dealers.

Both the town selectmen back in December, and now Norfolk County Superior Court Judge Kenneth Fishman, have decided in Tesla’s favor that its store is legally separate from Tesla Motors.

Automotive News reports that the Massachusetts State Automobile Dealers Association is currently debating whether to appeal the ruling. The Association’s case hinges on dealers being able to sue for injunctive relief if they feel the public is being harmed. Of course as most consumers have little regard for car dealers this seems like a long shot.

It may also go to the state attorney general, which has enforcement power over state franchise law.

Share:

More Posts

car tax

60 vehicles that are facing £2,745 car tax

The Government is about to ramp Car Tax or VED charges for petrol and diesel models starting April 2025 on a vehicle’s first year. This is due to major alterations in Vehicle Excise Duty rates unveiled in the Autumn Budget by Labour. The fee increase will be on a sliding scale, those on higher tiers

Changes to EV Road Tax – From April 2025

All change on the Road Tax front Understanding the complex UK Vehicle Excise Duty (VED) or “Road Tax” Vehicle Excise Duty (VED), commonly referred to as road tax, is a tax levied on vehicles used on UK roads. Historically, electric vehicles (EVs) have been exempt from this charge. However, from April 2025, changes to VED

feb 2025

Solar Production Feb 2025

Just 55.4 kWh Produced in Feb 2025 – Dismal cloud cover January 2025 was dark, cold and no sun. Feb was only slightly better and managed to provide us with 5 days with any meaningful sun.   See total output to date: Solar PV performance

Solar Production Jan 2025

Just 17 kWh Produced in Jan 2025 – Dismal cloud cover January 2025 – What another grey month it was with hardly any sun shine. The Solar Edge system produced just 17.6kWh compared with 18 last year. Another dismal month. The month suffered from days of Dunkelflaute, a German term that roughly translates to a

Send Us A Message