The California New Car Dealers Association said that it does not have a problem with Tesla selling vehicles in the state, but with the way the cars are marketed.
The California New Car Dealers Association, which represents 1,100 dealerships, asks the state to investigate the advertising claims for the EV Model S sedan on Tesla’s web site. According to the association, the web site can mislead buyers by promoting monthly payments which are much lower than the real ones.
“The dealer associations nationally and at the state level object to the fact that we’re trying to educate our customers directly, sell them cars directly and service their vehicles directly because this runs entirely counter to the virtual monopoly they have in most states,” Diarmuid O’Connell, Tesla’s vice president of business development, said last week.
O’Connell added that the dealer model is not a good choice for Tesla for the moment, but that one day the automaker might use dealers. In the letter the association sent last week to California’s Department of Motor Vehicles, it calls for the investigation and ” remedy of several egregious violations of advertising and consumer protection laws” by Tesla.
“Our hope at minimum is that they would urge Tesla to stop advertising their vehicles in the way they’ve been doing,” said Brian Maas, president of the association.