Tesla US dealership disputes

The electric car company Tesla has faced dealership disputes in several US states as a result of local laws. In the United States, direct manufacturer auto sales are prohibited in many states by franchise laws requiring that new cars be sold only by independent dealers.

Tesla maintains that, to properly explain to their customers the advantages their cars have over "traditional" vehicles with an internal combustion engine, they cannot rely on third-party dealerships to handle their sales.[1][2] Economists have characterized laws that require independent dealers to sell cars as a form of rent-seeking that extracts rents from manufacturers of cars and increases costs for consumers of cars while raising profits for car dealers.[3]

Corporate strategy

Tesla has a 60% degree of vertical integration in 2016 according to Goldman Sachs. The integration includes its own sales channels and proprietary charging infrastructure, among others. The high degree is rare in the automotive industry, where companies typically focus on engine manufacturing and vehicle assembly, outsourcing 80%[4] of components to suppliers while letting franchises serve as sales points.[5][6]

Some of Tesla's stated goals are to increase the number and variety of electric vehicles (EVs) available to mainstream consumers by selling its own vehicles in company-owned showrooms and online.[7][8][2] Tesla states that owning stores "creates an information loop from our customers straight into manufacturing and vehicle design".[9] Tesla attempts to not make a profit on servicing cars.[10][11][12]

Sales model

As of September 2020, Tesla operates more than 130 stores and galleries in the United States,[13] and has stores and galleries in 34 other countries.[14] It owns the stores and sells directly to customers via the internet and in non-US stores.[15][16][17][better source needed]

Tesla has a low budget for marketing, and uses a referral program and word of mouth to attract buyers.[18]

US dealerships and automotive dealership disputes

Tesla gallery in Austin, Texas
External image
image icon Map of direct automaker sales, regarding Tesla conditions. Archive

As of September 2020, there are stores and galleries[19][20]—usually located in shopping malls—in 29 US states and Washington DC.[21] Customers can buy vehicles from stores,[22][23][24] as well as from the Tesla website.[25] The stores serve as showrooms that allow people to learn about the company and its vehicles.[2] Some galleries are located in states with restrictive dealership protection laws which prevent discussing price, financing, and test drives, as well as other restrictions. Tesla has set up mobile-shipping-container "stores"[9] and 6 Airstream travel trailers each pulled by a Model X, reaching areas not served by brick-and-mortar shops.[26][27]

Tesla's strategy of direct customer sales and owning stores and service centers is different from the standard dealership model in the US vehicle marketplace.[28] In the early 2010s, Tesla was the only manufacturer that sold cars directly to customers; all other automakers used independently owned dealerships[29][30] although some automakers provided online configuration and financing.[31][32][33] Forty-eight states had laws that limit or ban manufacturers from selling vehicles directly to consumers,[34][35][36] and although Tesla has no independent dealerships, dealership associations in multiple states filed numerous lawsuits against Tesla, to prevent the company from selling cars. Among other states, North Carolina and New Hampshire sided with Tesla, while Virginia and Texas sided with dealers.[37]

Jurisdictions outside the United States do not have such laws protecting car dealerships.[9]

The laws against direct sales arose historically in the United States starting in the 1930s, as automobile manufacturers started using independently franchised dealerships to offload the tasks of retail selling and servicing vehicles.[38] The laws have been actively defended into the 21st century and extended to online in-state sales.[39][40] Such regulations protect dealerships against a manufacturer opening its own dealerships and competing against resellers, which could be seen as an abuse of the manufacturer-franchise relationship.[38] Critics view the laws as thwarting legitimate competitive pressure that benefits consumers, and some have described them as "protectionism",[38] and "crony capitalism".[41]

The Federal Trade Commission recommends allowing direct manufacturer sales,[42][43] which a 2000 report by a Goldman Sachs analyst projected would save consumers an average of $2,225 on a $26,000 car.[40][44] In May 2014, a report prepared by Maryann Keller and Kenneth Elias for the National Automobile Dealers Association claims that franchises (such as offered by its members) offer better value for customers than direct sales.[28][45][46]

Independent dealerships typically earn more money from service than from sales, so the lower maintenance requirements of electric vehicles can provide a financial incentive for selling gas-powered vehicles, to Tesla's disadvantage.[38] Investigations by Consumer Reports and the Sierra Club found that independent dealers often could not answer questions about electric cars, did not provide information about government rebates, did not showcase the cars prominently, or let the batteries run out.[38]

States with total direct sales bans

Alabama (also bans service centers)

Alabama regards manufacturer-owned new motor vehicle stores and service centers as "unfair and deceptive trade practices".[47] In August 2016 State Senator Tom Whatley introduced Senate Bill 22, assigned to the Senate Tourism and Marketing Committee, which would allow a manufacturer of alternative fuel vehicles to sell and lease its vehicles directly to the public.[48] The bill died in committee.[49]

South Carolina (also bans service centers)

South Carolina bans manufacturer ownership of new car dealerships and manufacturer service/repair of cars they do not own. A bill was introduced in 2019 to allow electric only manufacturers to sell in the state.[50] However, Tesla does offer mobile service in the state.

New Mexico (also bans service centers)

2006 New Mexico Statutes, Section 57-16-5-V prohibits manufacturers like Tesla to be licensed as a dealer, directly or indirectly performing warranty or other services.[51] Despite Tesla owners' pleas to change the law, they still currently depend on Tesla facilities that are either on tribal land or out-of-state for Tesla sales and services.

In January 2019, the Public Affairs Committee approved the Tesla-friendly Senate Bill 243,[52] but it died on the Senate Corporations and Transportation Committee calendar. House Bill 294 died in the House Commerce and Economic Development Committee.[53]

In August 2021 Tesla opened their first store and service center in the state on Nambé Pueblo tribal land north of Santa Fe.[54] Prior to this, Tesla owners in New Mexico were heavily reliant on mobile service. A second store and service center north of Albuquerque on Santa Ana Pueblo tribal land opened on June 1, 2023.[55]

West Virginia (also bans galleries)

West Virginia does not allow Tesla-owned stores or showrooms.[56] In January 2019, House Bill 2219 was introduced that would allow a manufacturer to be licensed and operate as a new motor vehicle dealer if the company only sells zero-emissions vehicles and only manufactured since 2008.[57]

Kansas (also bans galleries)

Kansas does not allow engaging in the business of selling vehicles directly or indirectly without a franchise agreement with the manufacturer.[58] This includes the display of vehicles in a showroom, thus banning galleries. Kansas does permit service centers, and one is planned for Lenexa, the city council granting its approval on April 19, 2022.[59]

Kentucky

Kentucky does not allow direct sales by auto manufacturers.[60] Tesla does not have any stores or galleries in Kentucky as of July 25, 2024, but does have one service center. It was reported in July 2024 that work has been going on behind the scenes to do direct sales in the state.[61]

Louisiana

Louisiana enacted a law in June 2017 that bans direct to consumer sales of vehicles.[62][63][64] Louisiana does permit service centers, and there is one in New Orleans.[65] However, that service center may not be able to perform warranty repairs after Tesla saw a lawsuit against the state of Louisiana thrown out of federal court.[66]

Texas

Texas law states "Except as provided by this section, a manufacturer or distributor may not directly or indirectly:(1) own an interest in a franchised or nonfranchised dealer or dealership;(2) operate or control a franchised or nonfranchised dealer or dealership; or(3) act in the capacity of a franchised or nonfranchised dealer. (Tex. Occ. Code Ann. § 2301.476) and "A motor vehicle shall not be advertised for sale in any manner that creates the impression that it is being offered for sale by the manufacturer or distributor of the vehicle. An advertisement shall not contain terms such as “factory sale,” “fleet prices,” “wholesale prices,” “factory approved,” “factory sponsored,” “manufacturer sale,” use a manufacturer's name or abbreviation in any manner calculated or likely to create an impression that the vehicle is being offered for sale by the manufacturer or distributor, or use any other similar terms which indicate sales other than retail sales from the dealer" (43 Tex. Admin. Code § 215.261).

These laws make it illegal to buy a car from Tesla in person, at a Tesla Gallery. Thus, all Texas orders are taken via the internet or over the phone. Texas residents can still easily buy a car from Tesla, but the purchase is handled as an out-of-state transaction and must be completed before the vehicle ships to Texas. Tesla recently added the ability to include tax, title, license, and registration in the sale price of the car so the purchaser doesn't have to pay that separately once they receive the vehicle. In 2015, Tesla lobbied the Texas Legislature to modify the law[67] to allow Tesla to sell directly to consumers, and specifically allow Tesla employees to discuss "financing, leasing, or purchasing options" at the firm's existing galleries in Austin, Dallas, and Houston.[68] Texas considered legislation in 2015 to allow Tesla to operate in the state[69] but legislation was not passed.[70]

As of 2016, most of the GOP delegates support direct sales while Governor Abbott prefers the current system. According to Texans for Public Justice, Tesla spent $1.3m on lobbyists while dealerships spent $1m.[71]

Wisconsin

Auto manufacturers are not allowed to sell directly to the public under Wisconsin law.[72] In late 2017 a legislative bill named "Electric Vehicle Freedom Act" was introduced to allow only electric vehicle manufactures to sell directly. The bill is opposed by the Wisconsin Automobile Dealers & Truck Association.[73]

Nebraska

Nebraska prohibits auto manufacturer direct sales. Multiple efforts have been made to change this law. In 2018, LB830 was introduced to this effect.[74][75][76] In 2020, LB51 was introduced, also to this effect, but did not pass.[77]

Tesla has recently opened a service center in Lincoln, but LB891, introduced by Carolyn Bosn, would force it to close if passed in its original form. Negotiations are underway for a compromise amendment that would allow the service center to remain open even under LB891.[78]

Iowa

Iowa law currently prohibits manufacturers from owning dealerships.[79]

Oklahoma

Oklahoma currently bans direct sales by auto manufacturers. Legislation was introduced in February 2018 to attempt to allow it,[80] but this failed. State Representative Mike Dobrinski, a former automotive dealer himself, has made multiple attempts to expand this ban to include service centers, eventually resulting in HB2244 passing the Oklahoma House of Representatives on March 21, 2023.[81] However, HB2244 did not receive a floor vote in the Oklahoma Senate. Tesla has 2 facilities that would have been affected had this bill become law: one in Oklahoma City, the other in Tulsa. Dobrinski is trying again for the 2024 Oklahoma legislative session, along with an ally of his in the Oklahoma Senate. There are three bills this time that would be problematic for Tesla: HB3105,[82] HB3104 and SB2022.[83]

Arkansas

Arkansas law prohibits manufacturers from owning dealerships. In April 2021, Governor Asa Hutchinson signed HB1922, which amended the existing franchise law to explicitly prohibit direct leasing.[84]

Connecticut (allows direct leasing)

Connecticut does not allow manufacturer direct sales, but does allow direct leasing. Tesla operated a gallery in Greenwich that the Connecticut Automotive Retailers Association successfully got shut down via a lawsuit. In March 2018, Tesla was appealing a ruling that they operate the Greenwich gallery as an unlicensed dealership,[85] but later dropped the appeal. The gallery was shut down in March 2019.[86] In December 2019, Tesla started offering leases at their showrooms which allowed them to provide test drives for customers discussing leases.[87]

In 2015, 2016, 2017, and 2018 bills were introduced in the legislature to allow licensing electric vehicle manufacturers as dealers.[88][89]

In March 2021, Connecticut state bill, SB-127 (the EV Freedom Bill), that would allow all EV makers to sell directly to their customers, passed out of the General Assembly's Transportation Committee and awaited a vote by the full state house and senate.[90][91] The Session Year 2022 bill was Senate Bill number 214.[92] The bill was reported on favorably by the Transportation Committee on March 14, 2022[93] by a vote with 21 yeas to 14 nays, but never received a floor vote.

Tesla opened a store at the Mohegan Sun casino in late 2023, utilizing the tribal land loophole as in New Mexico.[94][95]

States with limited sales

Mississippi (1 store limit)

On March 14, 2023, Governor Tate Reeves of Mississippi signed HB401, which bans direct sales of EVs by manufacturers.[96] Tesla's existing Brandon location will be "grandfathered in".

Ohio (3 store limit)

In December 2013, days before Tesla was to open its first store in Ohio, a one line amendment to a draft bill was proposed at the urging of the Ohio Automobile Dealers Association that would have prevented Tesla from selling directly to the public in the state. This amendment was dropped a day later.[97] A group of auto dealers then sued the state to try to get Tesla's license rescinded. This suit was dismissed less than two months later. Shortly thereafter a legislative bill was introduced that would ban all manufacturers from owning dealerships, not just those with existing franchisees.[98] A deal reached between Tesla and the Ohio Automobile Dealers Association in March 2014 allowed Tesla to have three stores but blocks all other auto manufacturers.[99] The Ohio Senate approved the bill in April.

Maryland (4 store limit)

In May 2015, Maryland approved, through House Bill 235,[100] direct Tesla sales to customers beginning in October 2015, though limiting the statewide number of stores to only four. The legislation was crafted specifically for Tesla and allows only four manufacturers of electric or non-fossil fuel burning vehicles without existing franchisees to be licensed to sell direct to the public.[101][102]

Virginia (5 store limit)

In Virginia Tesla has obtained license from the Department of Motor Vehicles (DMV) for a single direct sales dealership (Tysons Corner). Upon learning of Tesla's attempt to obtain a second dealership in the state, the Virginia Automobile Dealers Association filed a lawsuit in March 2016 against both Tesla and the DMV to prevent the licensing of the second dealership.[103] In September 2016, the Virginia Department of Motor Vehicles (VDMV) recommended ending Tesla direct sales, as at least 11 dealerships were interested in selling Tesla vehicles.[104] The VDMV later allowed Tesla to open another shop (Richmond), as Tesla has no dealerships to compete against;[105] the 11 interested dealerships would not be able to compete on undiscounted prices, as Tesla has the same price online and in shops.[106][107] Third-party profits could come from servicing as is traditional, but Tesla already has satisfactory servicing.[107][108] In July 2021, Tesla won approval from the Virginia Department of Motor Vehicles to open three new stores in Charlottesville, Norfolk and Arlington.[109]

New Jersey (4 store limit)

On March 10, 2014, it was announced that New Jersey Motor Vehicle Commission and Governor Chris Christie's administration would be holding a meeting to pass a new proposal into law. This new proposal, PRN 2013–138, was announced one day before it was to be put into law. Tesla responded by saying that the proposal "seeks to impose stringent licensing rules that would, among other things, require all new motor vehicles to be sold through middlemen and block Tesla's direct sales model", and that "[Governor Christie's] Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey."[110] The law was passed, and "Tesla will no longer [be able to] sell electric cars in New Jersey, effective April 1". Diarmuid O'Connell, Tesla Vice President of Business Development, said, "Worse, it has done so without any reasonable notice or even a public hearing."[111] Forbes contributor Mark Rogosky said, "The state's new rules protect its auto dealers from having to compete with Tesla's direct sales model"; he points out that this is a direct contrast from what Christie said earlier, "We are for a free-market society that allows your effort and ingenuity to determine your success, not the cold, hard hand of the government."[112] Kevin Roberts, a spokesman for the Christie administration, responded by saying "it was the [Tesla Motors] company, not the governor's office, that was attempting to bypass normal procedures.".[110][113]

In March 2015, a new state law was signed allowing zero-emission vehicle manufacturers to sell at up to four locations and requiring a minimum of one service center.[114]

2018 session Senate bill No. 3493 was introduced to increase the number of allowed sales locations to 14 by 2023, but increases the mandated retail service facilities to seven.[115] It died in committee.

In September 2019, the New Jersey auto dealers' association, the New Jersey Coalition of Automotive Retailers, sued Tesla and the state to stop Tesla from selling cars by its current methods in the state.[116]

Pennsylvania (5 store limit)

Pennsylvania enacted a law in 2014 that allows Tesla to open up to five stores.[117]

New York (5 store limit)

In 2014, New York banned direct sales but grandfathered in five Tesla stores.[118] Tesla operates four galleries in addition to its five stores. There was proposed legislation in 2018 (Senate bill S6600A and Assembly bill A8248A) to allow more stores. The Eastern New York Coalition of Automotive Retailers opposed this as did the Rochester Automobile Dealers Association.[119]

There are plans to open a new Tesla store east of Syracuse by utilizing the tribal land loophole, similarly to how it enabled opening the 2 Tesla locations in New York.[120]

North Carolina (6 store limit)

Tesla's first store in North Carolina was in Raleigh. In 2016 the state would not grant Tesla a dealer license for a second location in Charlotte.[121][122] A previous legislative bill that would allow six Tesla stores was shelved in 2017.[123] In July 2019 a bill was passed allowing Tesla to operate a maximum of six stores, unlimited galleries and repair centers.[124][125]

Illinois (13 store limit)

In 2019, the Illinois Secretary of State, Illinois Automobile Dealers Association, and Tesla entered into an administrative consent order stating that Tesla could have up to thirteen dealer licenses in Illinois. [126]

States for which Tesla gained the right to mostly unrestricted direct sales

New Hampshire (2013 law change)

In 2013, New Hampshire passed legislation to allow auto manufacturers with no existing franchise dealer in the state to engage in direct sales.[127]

Minnesota (2013 law interpretation)

The Minnesota Department of Public Safety ruled in 2013 that the original dealer law "does not prohibit a manufacturer from becoming licensed as a dealer in Minnesota".[128] The dealership association in the state failed in their attempt to get the law changed to block Tesla.[129]

Washington (2014 law)

A 2014 Washington state law outlawed direct sales but grandfathered in Tesla.[130][131]

Massachusetts (2014 court ruling)

After an almost two year court battle with the Massachusetts State Automobile Dealers Association, a September 2014 ruling by the Massachusetts Supreme Judicial Court allowed Tesla to begin selling directly in the state. The court ruled the law only protected franchise dealers from abuse by manufacturers they already buy from; since no franchise dealers were selling Teslas at the time of the suit, the court ruled the Association had no standing to sue.[132][133][134]

Missouri (2017 court ruling)

A Missouri circuit court ruled in August 2016 to end direct sales,[135] confirmed in late December 2016,[136] and delayed in early January while the Missouri Department of Revenue appeals the former verdict.[137] In December 2017 an appeals court reversed the circuit court's decision, saying the Missouri Automobile Dealers Association did not have standing to sue.[138] However, the Dealers Association is backing new legislation that would allow it to sue.[139]

Wyoming (2017 law change)

Wyoming banned direct sales until a law change in 2017 that created a direct sale manufacturer's license.[140][141] Electric cars were seen as a way to promote the use of coal mined in the state.

Arizona (2017 court ruling)

Arizona blocked direct sales until June 2017 when an administrative law judge ruled that the Arizona Department of Transportation interpreted the law incorrectly. This was after a years-long legal battle by Tesla.[142]

Indiana (2017 law change)

Indiana allows a service center[143][144] and manufacturer sales for 30 months, ending direct Tesla sales by the end of 2017.[145] A legislative proposal had further restrictions,[146] opposed by Tesla.[147] The Roads and Transportation committee approved a modification that grandfathered Tesla, but maintained the ban on all new direct sales by other automakers.[148]

Rhode Island (2017 law interpretation)

In December 2017, Tesla was granted a license by the state of Rhode Island after DMV lawyers concluded that the law blocking direct auto sales only applied to manufacturers that have franchise dealers. Tesla planned to begin sales in 2018 in Warwick,[149][150] but this was pushed back to 2019.[151]

Utah (2018 law change)

As of March 21, 2018, Utah Governor Herbert signed a bill into law allowing Tesla direct sales in the state.[152]

After a change of political leadership in Michigan's executive branch, on January 22, 2020, Tesla and the state of Michigan agreed to settle Tesla's 2016 federal lawsuit against the state for unfair vehicle sales and service restrictions. The agreement allows Tesla to sell and service cars within the state. Previously Tesla could not sell or service vehicles in Michigan. Tesla may deliver vehicles within the state, but they must be titled outside of Michigan and transferred to a new title after purchase. Tesla may not own a service center directly, but a wholly owned subsidiary may own a service center.[153][154]

Colorado (2020 law change)

In March 2020, the law was changed (via Senate Bill 20–167) to allow EV-only manufacturers to sell direct in Colorado.[155] This ended a period of about 10 years during which Tesla had been restricted to a single store. A 2010 revision to the state dealership law had removed the word "franchised", which closed the loophole that Tesla had used to open a direct dealership.[156] The existing single store at the time had been "grandfathered in". As of April 2023, Tesla has a total of 6 stores in Colorado.[157]

Delaware (2023 court ruling)

In May 2023, the Delaware Supreme Court overturned a lower court ruling which had banned Tesla from establishing sales locations in Delaware, rejecting claims that the state's franchise law prohibited the direct sales model.[158]

Florida (2023 law change)

In June 2023, House Bill 637 was signed, which establishes a "franchise law" in Florida, but creates an exception for manufacturers without existing franchise agreements.[159]

Surveys

In 2014, Consumer Reports performed a mystery shopper survey of 19 secret shoppers in 85 dealerships, querying electric vehicles. Most shoppers found it to be a positive experience, although 35 dealerships recommended gasoline cars instead, and 13 discouraged EVs. The most knowledgeable dealerships were Chevrolet, and the least were Toyota.[160]

In 2016, two shopper surveys showed contrasting shopping experiences between Tesla and traditional dealerships. One performed by the environmental organization Sierra Club found that in 14% of traditional dealerships, their electric cars were not charged to test drive, and 33% did not discuss the $7,500 Federal tax credits.[161][135]

Another study by industry analyst Pied Piper using mystery shoppers found that Tesla sales stores (not galleries) differed among each other on sales techniques, and many stores were reluctant to engage in closing a sale.[162]

Customers generally view car shopping as a challenging experience.[163][164]

In May 2019, Sierra Club revisited dealerships, and found that 74% did not offer electric vehicles. Those that did, were mostly in states with requirements for zero-emission vehicles.[165] A 2019 study indicates that only 10% of Americans have significant knowledge of EVs.[166]

References

  1. ^ Bodisch, Gerald R. (May 2009). "Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers". United States Department of Justice. Retrieved 21 August 2016.
  2. ^ a b c Fehrenbacher, Katie (2016-01-19). "7 reasons why Tesla sells its own cars". Fortune. Retrieved 2016-12-02.
  3. ^ Lafontaine, Francine; Morton, Fiona Scott (2010). "Markets: State Franchise Laws, Dealer Terminations, and the Auto Crisis". Journal of Economic Perspectives. 24 (3): 233–250. doi:10.1257/jep.24.3.233. ISSN 0895-3309.
  4. ^ McAssey, Pat (2016-10-13). "Volkswagen CEO 'Annoyed Beyond Measure' That DHL Made Electric Van". NESN Fuel. Retrieved 2016-10-20.
  5. ^ Lambert, Fred (2016-02-26). "Tesla is now ~80% vertically integrated, says Goldman Sachs after a Tesla Factory visit". electrek.co. Retrieved 2016-03-31.
  6. ^ "Alternative Fuels Data Center: Developing Infrastructure to Charge Plug-In Electric Vehicles". afdc.energy.gov. United States Department of Energy. Retrieved 2016-04-10.
  7. ^ "Press Releases" (Press release). Tesla Motors. 2009-06-04. Archived from the original on 2009-06-11. Retrieved 2009-08-01.
  8. ^ Elon Musk (2012-10-22). "The Tesla Approach to Distributing and Servicing Cars". Tesla Motors. Archived from the original on 2016-08-01. Retrieved 21 August 2016.
  9. ^ a b c "Road Rules: How Tesla Plans to Change The Way We Buy Cars". Fast Company. 8 August 2016. Retrieved 17 August 2016.
  10. ^ Elon Musk (14 March 2014). "To the People of New Jersey". Tesla. Archived from the original on 2 August 2016. Retrieved 6 October 2016.
  11. ^ Elon Musk (26 April 2013). "Creating the World's Best Service and Warranty Program". Archived from the original on 2016-03-10. Retrieved 2016-10-06.
  12. ^ "Tesla Service Center Stats". Tesla Motors Club. 31 August 2016. Retrieved 2016-11-15.
  13. ^ "US Tesla Stores and Galleries | Tesla". www.tesla.com. Retrieved 2020-09-20.
  14. ^ "Find Us | Tesla". www.tesla.com. Retrieved 2020-09-20.
  15. ^ "Does anyone know how many stores Tesla has over the years? • /r/teslamotors". 30 November 2015.
  16. ^ Number of Tesla Stores
  17. ^ List
  18. ^ "How Tesla's Referral Program Generates More Than 40x ROI". Inc.com. 22 September 2016. Retrieved 16 October 2016.
  19. ^ "Tesla Accused of Operating Illegal Showrooms in 4 States". The Car Connection. Retrieved 2015-04-12.
  20. ^ Harry Stevens (2013-01-15). "Court Affirms Tesla's Right to Operate Company-Owned Stores". Triple Pundit: People, Planet, Profit. Retrieved 2015-04-12.
  21. ^ "US Tesla Stores and Galleries | Tesla". www.tesla.com. Retrieved 2020-02-06.
  22. ^ Rogowsky, Mark (2013-12-04). "Ohio To Tesla: We're Ignoring Our Whiny Car Dealers For Now, Come Sell Here". Forbes. Retrieved 2014-05-08.
  23. ^ Borchers, Callum (2013-11-20). "Tesla battles auto dealers on direct sales to consumers - Business - The Boston Globe". Boston Globe.
  24. ^ John Voelcker (6 June 2013). "Tesla Loses Legal Battles To Texas, North Carolina Dealers". Green Car Reports. Retrieved 2015-04-12.
  25. ^ "Model S Design Studio". Tesla Motors. Retrieved 2015-04-12.
  26. ^ "Tesla is going on a road trip to sell cars". The Verge. Vox Media. 8 September 2016. Retrieved 9 September 2016.
  27. ^ "Tesla Explores". Tesla Motors. Archived from the original on 9 September 2016. Retrieved 9 September 2016.
  28. ^ a b Richard Read. "Terrified of Tesla, NADA Launches Campaign To Tout Benefits of Franchise Dealerships". The Car Connection. Retrieved 2015-07-16.
  29. ^ Dan Gearino. "Auto dealers in Ohio seek to stop Tesla's way of direct selling". The Columbus Dispatch. Retrieved 2015-04-12.
  30. ^ O'Toole, James (2013-07-02). "Tesla direct-sales petition hits 100,000 signatures". CNN. Retrieved 2015-04-12.
  31. ^ Christina Rogers (2013-10-07). "GM Opens the Door to Online New-Car Sales - WSJ". The Wall Street Journal. Retrieved 2015-07-16.
  32. ^ Richard Read. "GM Follows Tesla's Lead, Plans To Sell Directly To Online Shoppers". The Car Connection. Retrieved 2015-07-16.
  33. ^ Bengt Halvorson. "Scion Lets You (Almost) Buy A Car at Home, Take Delivery at Dealership". The Car Connection. Retrieved 2015-07-16.
  34. ^ Voelcker, John (2012-10-25). "Auto Dealers' Fight Against Tesla Stores: Elon Musk Weighs In". Green Car Reports. Retrieved 2014-02-10.
  35. ^ David Noland (24 October 2013). "How Texas's Absurd Anti-Tesla Laws Turn Car Buying into A Joke". Jalopnik. Retrieved 2015-04-12.
  36. ^ Chapman, Steve (2013-06-20). "Car buyers get hijacked". Chicago Tribune. Retrieved 2015-04-12.
  37. ^ DeMorro, Christopher (2013-07-01). "Tesla Wins Big in North Carolina And New Hampshire". Gas 2. Retrieved 2013-07-31.
  38. ^ a b c d e "Why you can't buy a Tesla in these states". 15 October 2018.
  39. ^ Bradsher, Keith (October 13, 1999). "Fight Is Promised Over G.M. Plan to Buy Dealerships". The New York Times.
  40. ^ a b Lane, Charles (2014-03-12). "Tesla takes on car dealerships in a fight to the death". The Washington Post. Retrieved 2015-05-20.
  41. ^ Crane, Daniel A. "Tesla, Dealer Franchise Laws, and the Politics of Crony Capitalism" page 577-579. Iowa L. Rev. 101, no. 2 (2016): 573-607 . Size: 35 pages in 1 MegaByte
  42. ^ "Direct-to-consumer auto sales: It's not just about Tesla". 11 May 2015. Retrieved 2015-07-16.
  43. ^ Richard Read. "Can The FTC Persuade Michigan & Other States To Open Their Doors To Tesla?". The Car Connection. Retrieved 2015-07-16.
  44. ^ "Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers" Economic Analysis Group Competition Advocacy, May 2009.
  45. ^ Keller, Maryann; Elias, Kenneth (2014-05-27). "Consumer Benefits of the Dealer Franchise System". National Automobile Dealers Association. Retrieved 2016-01-31.
  46. ^ "The Price Effects of Intra-Brand Competition in the Automobile Industry: An Econometric Analysis" (PDF). www.phoenix-center.org. March 2015.
  47. ^ "Alabama Code - Section 8-20-4: Unfair and Deceptive Trade Practices". FindLaw. Archived from the original on 2015-09-09. Retrieved 2016-08-21. s. To own an interest in a new motor vehicle dealership, to operate or control a dealership, to make direct sales or leases of new motor vehicles to the public in Alabama, or to own, operate, or control a facility for performance of motor vehicle warranty or repair service work
  48. ^ Lambert, Fred (2016-08-19). "Tesla tries to sell its vehicles directly in Alabama, senator introduces new bill". electrek.co. Retrieved 2016-08-21.
  49. ^ Alabama Senate Bill 22, 2016, 1st Special Session
  50. ^ "Plural". pluralpolicy.com.
  51. ^ "2006 New Mexico Statutes - Section 57-16-5 — Unlawful acts; manufacturers; distributors; representatives". Justia Law. Retrieved 2018-01-12.
  52. ^ Writer, Marie C. Baca | Journal Staff (February 2019). "Senate panel passes bill that Tesla is pushing". www.abqjournal.com. Retrieved 2019-02-04.
  53. ^ "2019 New Mexico Legislative Session Outcomes – Conservation Voters New Mexico".
  54. ^ "Tesla distribution, service center set to open on Nambe Pueblo". KRQE NEWS 13 - Breaking News, Albuquerque News, New Mexico News, Weather, and Videos. 2021-09-09. Retrieved 2021-09-10.
  55. ^ "Albuquerque Regional Economic Alliance: Pueblo of Santa Ana & Tesla Host Groundbreaking for a New Mexico First". 2023-06-01. Retrieved 2023-06-01.
  56. ^ Read, Richard (2015-03-27). "Tesla Wins in Georgia, Loses in West Virginia". TheCarConnection.com. Retrieved 2015-07-07.
  57. ^ "Bill Status - Complete Bill History". www.wvlegislature.gov.
  58. ^ "Article 24 of Kansas Statutes". Retrieved 2023-05-16.
  59. ^ "Lenexa City Council Minutes - April 19, 2022". Retrieved 2023-05-16.
  60. ^ Green, Marcus (6 August 2021). "Tesla plans a Louisville 'dealership.' Kentucky law could complicate that". WDRB.
  61. ^ "x.com".
  62. ^ Meachum, Alex. "Tesla speaks out against La bill". arklatex. Retrieved 6 April 2018.
  63. ^ Dolzer, Mike (7 June 2017). "Tesla hit with new Louisiana law that prohibits direct sales in state". teslarati. Retrieved 6 April 2018.
  64. ^ Tesla says new law will prohibit direct sales in Louisiana, June 6, 2017, The Associated Press
  65. ^ "New Orleans Service Center". April 11, 2023.
  66. ^ "Tesla loses direct sales lawsuit that aimed to fight stressful carbuying". 2023-06-19. Retrieved 2023-06-19.
  67. ^ "Tesla Poised for Lobbying Blitz in 2015". Texas Lobby Group, Conservative Lobbyists. 2015-01-21. Retrieved 2015-08-21.
  68. ^ White, Ronald D. (2013-04-10). "Tesla CEO takes dealer fight to Texas, says he can sell more cars". Los Angeles Times. Retrieved 2013-04-15.
  69. ^ Lutz, Hannah (2015-01-20). "Tesla could open up to 12 Texas stores if legislation passes". Automotive News. Retrieved 2015-08-21.
  70. ^ Heisler, Yoni (2015-05-20). "Tesla Sales Texas: Direct sales of Tesla Model S not coming to Texas". BGR. Retrieved 2015-08-21.
  71. ^ "Texas auto dealers receive Tesla-sized dent from state GOP". Trail Blazers Blog. The Dallas Morning News. Retrieved 15 August 2016.
  72. ^ Tesla eyes Wauwatosa for first Wisconsin showroom, service center
  73. ^ Gores, Paul. "Legislation would let Tesla sell directly to buyers in Wisconsin". Journal Sentinel.
  74. ^ "Tesla attends Nebraska hearing in support of new bill for direct sales rights". www.teslarati.com. 31 January 2018. Retrieved 2018-01-31.
  75. ^ Bill would welcome Tesla into Nebraska by allowing direct sale of cars, Lincoln Journal Star, Jan 30, 2018
  76. ^ Tesla is knocking on Nebraska's door, hoping lawmakers will let it in, Cole Epley, Omaha World-Herald Bureau, Feb 1, 2018
  77. ^ "Nebraska Legislature - Legislative Document".
  78. ^ "Tesla opened a service center in Lincoln. Then, by accident, a bill threatened to close it". February 11, 2024. Retrieved February 14, 2024.
  79. ^ "Chapter 322 of Iowa Statutes" (PDF). Retrieved 2023-05-16.
  80. ^ OK SB1560
  81. ^ http://webserver1.lsb.state.ok.us/cf_pdf/2023-24%20ENGR/hB/HB2244%20ENGR.PDF Oklahoma House Bill 2244
  82. ^ "Oklahoma House Bill 3105" (PDF).
  83. ^ "Contact members of the Oklahoma Legislature in opposition of SB 2022 & HB 3104 today". February 20, 2024. Retrieved February 29, 2024.
  84. ^ "Arkansas Act 1077".
  85. ^ "Docket Number Search". civilinquiry.jud.ct.gov.
  86. ^ Zimmerman, Kevin (March 12, 2019). "Tesla shutters Greenwich showroom".
  87. ^ "Tesla found a loophole that lets it lease cars in Connecticut".
  88. ^ After Four Years Of Trying, Tesla Hopes To Win Approval To Sell Cars In Connecticut, 10 Feb 2018
  89. ^ "Transportation Committee - Vote Tally Sheet". Cga.ct.gov. 2018-03-23. Retrieved 2022-08-13.
  90. ^ "Tesla, Lucid, Rivian, & Other EV Makers Scored a Win in Connecticut". 24 March 2021.
  91. ^ "Editorial: Showdown between dealerships and Tesla in CT needs to get out of neutral". 25 March 2021.
  92. ^ "SB 214".
  93. ^ "Joint Committee Report" (PDF). 2022-03-14.
  94. ^ "Tesla to use tribal land loophole to finally operate in Connecticut". 26 July 2023. Retrieved 7 August 2023.
  95. ^ "Tesla showroom, first of its kind in CT, opens at Mohegan Sun". Connecticut Public. 8 December 2023.
  96. ^ "New law restricts electric car stores in Mississippi". 2023-03-15.
  97. ^ Siegel, Jim (2013-12-03). "Fight between Tesla, Ohio auto dealers to continue as legislators drop amendment". The Columbus Dispatch. Retrieved 2022-07-16.
  98. ^ Gearino, Dan (2014-02-09). "New effort in Ohio to ban Tesla's model for dealerships". The Columbus Dispatch. Retrieved 2022-07-16.
  99. ^ Gearino, Dan (2014-03-25). "Deal will let Tesla operate 3 Ohio stores". The Columbus Dispatch. Retrieved 2022-07-16.
  100. ^ HB0235, General Assembly of Maryland
  101. ^ Angelo Young. "Tesla Motors Inc (TSLA) Wins Approval For Direct Car Sales In Maryland, Starting October 1"
  102. ^ Richard Read. "Tesla Triumphs in Maryland As New Bill Allows Sales at Four Sites: Which State Is Next?". The Car Connection. Retrieved 2015-07-16.
  103. ^ LeSage, Jon (2016-06-02). "Virginia Dealers Protest Tesla's Retail Store Moves". hybridcars.com. Retrieved 2016-08-21.
  104. ^ "DMV hearing officer rules against Tesla Motors request for Richmond-area dealership". Richmond Times-Dispatch. 8 September 2016. Retrieved 2016-09-09.
  105. ^ "Tesla Wins Right to Open Virginia Store in Win Against Dealers". Bloomberg.com. December 2016. Retrieved 2016-12-02.
  106. ^ "Tesla gets green light for second Virginia store". Washington Post. 2016-11-30. Archived from the original on 2016-12-01. Retrieved 2016-12-02.
  107. ^ a b Formal Evidentiary Hearing: Tesla Motors, Inc., File No. 2016-001 - Request for a Hearing Pursuant to Va. Code§§ 46.2-1572(4) and 46.2-1573 to be a Dealer Archive Virginia Department of Motor Vehicles, November 30, 2016. Quote: "Tesla sells its vehicles at uniform prices whether a customer purchases through the Tesla website or at a Tesla store. Tesla could not or would not offer “dealer discounts” or “wholesale pricing” on new cars to a prospective dealership. VADA’s own experts agreed that it would be very hard or impossible for a dealership to be profitable unless Tesla offered their cars at wholesale prices." "2015 Consumer Reports survey ranked Tesla service centers number one"
  108. ^ "Independent vs. Dealer Shops for Car Repair". Consumer Reports. 2015-01-22. Archived from the original on 2016-05-22. Retrieved 2016-12-02. With few exceptions, the entire list of independent shops got high marks on those factors. The same couldn't be said for franchised new-car dealers. The one automaker that outscored the independent shops was the electric carmaker Tesla, which earned high praise for its on-time repairs, courtesy, price, quality, and overall satisfaction.
  109. ^ "Tesla gets DMV commissioner's nod to open three new stores in Virginia to sell its electric cars". Richmond Times-Dispatch. 29 July 2021. Retrieved 2021-08-01.
  110. ^ a b Walker, Hunter (2014-03-11). "Tesla Goes To War Against Chris Christie". Business Insider. Business Insider.com. Retrieved 2014-03-11.
  111. ^ Walker, Hunter (2014-03-11). "New Jersey bans direct auto sales". Business Insider. Business Insider.com. Retrieved 2014-03-11.
  112. ^ Rogosky, Mark (2014-03-11). "In New Jersey, Tesla Crashes into The Hypocrisy of Chris Christie". Forbes. Retrieved 2014-03-11.
  113. ^ Young, Angelo (2015-03-16). "Tesla Motors Inc Direct Sales in New Jersey: Legislature Passes Measure To Allow Model S Sales Outside Of Dealer Franchise System; Will Gov. Christie Block The Bill?". International Business Times. Retrieved 2015-07-16.
  114. ^ Symons, Michael (2015-03-18). "Christie signs law allowing Tesla sales in New Jersey". Asbury Park Press. Retrieved 2015-08-21.
  115. ^ "S3493".
  116. ^ "Tesla, state regulators sued by New Jersey dealer association | Automotive News".
  117. ^ Tesla cleared to open up to 5 stores in Pa. under new law, July 11, 2014
  118. ^ Cuomo brokers deal to keep Tesla stores open, March 28, 2014
  119. ^ Tesla could have opened 15 new stores, including one in Albany, under proposed state legislation, March 1, 2018
  120. ^ "Tesla To Open Its First Store In Upstate New York After Deal With Oneida Indian Nation". MSN. Retrieved 2023-06-07.
  121. ^ N.C. says Tesla can’t sell cars at Charlotte-area store
  122. ^ "North Carolina walks back on direct sales and denies Tesla's latest dealership license | Electrek".
  123. ^ "Tesla's direct-sale bill is shelved in North Carolina | Electrek".
  124. ^ "Senate Bill 384 / Clarify Motor Vehicle Dealer Laws". 2019-07-19. Retrieved July 22, 2019.
  125. ^ "Tesla and NCADA come to agreement on amendments to dealer bills". July 2, 2019. Retrieved July 22, 2019.
  126. ^ "Car Dealers Sue Rivian, Secretary Of State Over EV Sales". WGLT. March 26, 2021.
  127. ^ New Hampshire to allow Tesla, others to sell cars direct to consumers, June 26, 2013
  128. ^ Minnesota sales of electric, gas cars collide, Star Tribune, March 13, 2013
  129. ^ Minnesota dealers drop Tesla fight for now, Automotive News, March 12, 2013
  130. ^ In Washington state, Tesla finds way to share the road with dealers, Mar 21, 2014
  131. ^ "Tesla wins battle against auto dealers in Washington state, but future rivals are screwed". 19 February 2014.
  132. ^ "Massachusetts State Automobile Dealers v Tesla - Franchising - Standing (Law)". Scribd.
  133. ^ "SJC rules for Tesla in fight with car dealers". Boston Globe. 2014-09-15.
  134. ^ Levy, Gabrielle (2014-09-17). "Court: Tesla can sell direct to customers in Mass". UPI. Retrieved 2017-01-17.
  135. ^ a b "Tesla vows to keep selling cars directly to Missouri consumers". MarketWatch. 2016-09-08. Retrieved 2016-09-08.
  136. ^ Brown, Lisa (2016-12-30). "Tesla's license to sell cars in Missouri expiring". stltoday.com. Archived from the original on 2016-12-30. Retrieved 2016-12-30. a single entity may not manufacture vehicles for sale in Missouri and possess a Missouri new motor vehicle dealer license
  137. ^ Feldt, Brian (2017-01-05). "Appeals court rules on Tesla sales in Missouri". Archived from the original on 2017-01-05. Retrieved 2017-01-05.
  138. ^ Missouri Appeals Court Hands Win To Electric Car Maker Tesla, KCUR, 5 Dec 2017
  139. ^ Auto dealers renew fight against Tesla in Jefferson City, Brian Feldt St. Louis Post-Dispatch, Mar 2, 2018
  140. ^ Legislature passes a bill that would allow Tesla to open showroom, service shop in Wyoming, Casper Star Tribune
  141. ^ "Plural". pluralpolicy.com.
  142. ^ Randazzo, Ryan. "Yes, you can buy a Tesla electric car at its Scottsdale store". The Arizona Republic.
  143. ^ "Tesla gets a service center with an expiration date in Indiana". Electrek. 16 September 2016. Retrieved 2016-09-16.
  144. ^ "Tesla to open first Indy service center". 15 September 2016.
  145. ^ Blanco, Sebastian (2016-02-22). "Tesla fights back against anti-store bill 'authored and pushed' by GM". Autoblog. Retrieved 2016-02-23.
  146. ^ Assembly, Indiana General. "House Bill 1592 - Automobile sales requirements". Indiana General Assembly.
  147. ^ "Welcome to Free Market Indiana!". Archived from the original on 2017-02-03.
  148. ^ Lambert, Fred (2017-02-02). "Tesla escapes ban in Indiana by being 'grandfathered in', but the state moves forward with ban on direct sales". Electrek. Retrieved 2017-02-02.
  149. ^ Anderson, Patrick. "PAVING THE WAY". The Providence Journal.
  150. ^ "Plans for new RI Tesla dealer uncertain". Archived from the original on 2018-08-06.
  151. ^ Hartley, Ethan (October 16, 2018). "Tesla coming to Warwick in 2019". Warwick Beacon.
  152. ^ "Tesla enters Utah market as more drivers switch to electric - The Daily Universe". The Daily Universe. 2018-04-19. Retrieved 2018-06-12.
  153. ^ "Tesla gets some official loopholes around stupid laws to sell direct in Michigan". Electrek. 2020-01-23. Retrieved 2020-01-24.
  154. ^ "Joint Stipulation and Motion for Entry of Dismissal, Case No. 16-cv-1158" (PDF).
  155. ^ "Rivian wins big as Colorado passes electric vehicle direct sales law | Electrek".
  156. ^ Dealers call Tesla factory stores illegal, Automotive News, Oct 2012
  157. ^ List of Tesla Stores in the United States
  158. ^ "State Supreme Court strikes down ban on Tesla dealership, Delaware Business Now". 2023-05-15. Retrieved 2023-05-16.
  159. ^ "DeSantis Exempts Elon Musk's Tesla from Florida Car Sales Law". 2023-06-16. Retrieved 2023-06-16.
  160. ^ "Dealership Survey - Electric Cars". Consumer Reports. 2014-04-22. Archived from the original on 2017-01-30. Retrieved 2016-08-22.
  161. ^ "First-Ever Multi-State Study on Electric Vehicle Shopping Experience". Sierra Club National. 12 August 2016. Retrieved 2016-08-15.
  162. ^ "Mystery Shoppers Put Tesla Dealerships in Cellar – Again". Ward's. 11 July 2016. Archived from the original on 2016-07-12. Retrieved 15 August 2016.
  163. ^ "When It Comes To Car Shopping, Edmunds.com Finds That Americans Hate The Haggle So Much, They'd Give Up Sex, Facebook And Smartphones To Avoid It". Edmunds.com. Archived from the original on 2018-12-30. Retrieved 2019-02-16. American car shoppers loathe haggling over price
  164. ^ "Honesty/Ethics in Professions". 14 December 2006.
  165. ^ "A nationwide study of the electric vehicle shopping experience" (PDF). Sierra Club. November 2019.
  166. ^ "What Will it Take to Put Consumers in the Driver's Seat of Battery Electric Vehicles?" (PDF). Ipsos. 2020-01-13.