/ Industry, News, Tesla / Dealers Associations Call Tesla’s Factory Stores Illegal

Dealers Associations Call Tesla’s Factory Stores Illegal

Linked In Share
Dealers Associations Call Tesla’s Factory Stores Illegal

After Elon Musk opened several Tesla factory stores, his plans to open more might face a roadblock.

Currently, Tesla has 17 stores in 10 states and the District of Columbia, most of them located in shopping malls, and it plans to open 6 more this fall. But now dealer associations from several states and state regulators say that the automaker’s stores violate state franchise laws which don’t allow factory ownership of dealerships.

According to the protesting dealer associations, these factory-owned stores are unfair competition for rival dealerships, cannot offer support for customers that need repairs and will soon threaten the franchise system if left unchallenged.

“If a manufacturer sees that Tesla is successful with this kind of business model, who’s to say they don’t break out their own EV product lines and create a separate system that bypasses dealers?” said Bob O’Koniewski, executive vice president of the Massachusetts State Automobile Dealers Association. “It’s extremely problematic.”

George Blankenship, Tesla’s vice president of sales said that the automaker will comply with the states’ laws and that if they can’t be a dealer in a mall, no one will stop them to tell people access their website and do reservations on-line.

by Ana Cezara Savin (my Google+) - Monday, October 8th, 2012 - filed under Industry, News, Tesla. Image credit: .
Linked In Share
Related Articles
automobile dealers association elon musk factory stores Tesla


Discuss: Dealers Associations Call Tesla’s Factory Stores Illegal

One Response to “Dealers Associations Call Tesla’s Factory Stores Illegal”

  1. Jack Burgess says:

    These laws are antiquated, protectionist, and now only serve as an arbitrary barrier to protect a special interest group — the automobile dealers. Created prior to cell phones, ATM's, microwaves, PC's, the Internet, and especially Internet commerce; the laws no longer make sense in today's modern markets. They were originally enacted to foster competition. But over time as our modes of commerce have been updated, these laws have come to do just the opposite. If we allow them to stay in place, they will continue to stifle true competition, thus harming market efficiencies and the productivity of the automobile industry as a whole. Today, we consumers end up paying a little bit more for our cars due to this now unwarranted and inefficient protectionism. These laws should have been changed years ago.

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

2015 nose rules benefit Mercedes, Ferrari
2015 nose rules benefit Mercedes, FerrariSep.30 (GMM/Inautonews.com) Two teams already have a "big head start" when it comes to the 2015 regulations, according to Force ...
Nissan GT-R hits tree in New Zealand
Nissan GT-R hits tree in New ZealandThe driver of a Nissan GT-R has completely ruined his ride after losing control of the wheel and smashing into a tree in New ...
ARK Performance Hyundai Genesis previewed for SEMA
ARK Performance Hyundai Genesis previewed for SEMAThe 2014th edition of the SEMA Motor Show is just around the corner and ARK Performance is providing us with a preview of its ...
[VIDEO] See Jay Leno protect his McLaren P1 from paint chips
[VIDEO] See Jay Leno protect his McLaren P1 from paint chipsFamous petrol head Jay Leno has given some serious attention to its newest ride, the McLaren P1, which will now be protected from ...
2016 Chevrolet Camaro spied once more
2016 Chevrolet Camaro spied once moreThe future generation of the Chevrolet Camaro has been caught on camera once more, while it was being tested out near the famous ...
Lexus GS F caught on the open road
Lexus GS F caught on the open roadOur spy photographers have managed to capture the upcoming Lexus GS F on camera, as it was being tested out on public ...
Opel Corsa OPC spied
Opel Corsa OPC spiedThe German based automaker Opel is currently testing out a new top of the line version of the current Corsa, which will be ...
Vilner transforms BMW M6 into unrecognizable vehicle
Vilner transforms BMW M6 into unrecognizable vehicleA BMW M6 Convertible has been drastically transformed by Bulgarian aftermarket specialists from Vilner into an unrecognizable ...
Recall roundup: Toyota Tacoma for rear suspension problems
Recall roundup: Toyota Tacoma for rear suspension problemsToyota has issued a recall for the Tacoma pickup trucks because of a problem with the rear suspension system which may even lead ...
Australia – Mercedes-AMG Performance Studio C63 AMG Edition 507 unveiled
Australia – Mercedes-AMG Performance Studio C63 AMG Edition 507 unveiledThe Mercedes-AMG Performance Studio has recently pulled the wraps off the one-off C63 AMG Edition 507, a vehicle created ...
Recall roundup: Opel Adam and Corsa for urgent steering problems
Recall roundup: Opel Adam and Corsa for urgent steering problemsOpel / Vauxhall has issued a global recall for the 2014 Corsa and Adam models because of a problem with the steering. Bad news ...
Do you know who’s the automotive king of America?
Do you know who’s the automotive king of America?Another year, another Forbes 400 is out. And sniffing through the comprehensive list of larger than life bank accounts, we found ...
Cadillac CTS-V rendered
Cadillac CTS-V renderedCadillac’s upcoming performance sedan, the CTS-V, has been recently rendered and we can now see how it may look like when it ...
US: Los Angeles motorists lose $2,500 annually according to study
US: Los Angeles motorists lose $2,500 annually according to studyA report compiled by TRIP, a Washington transportation research group, sees Los Angeles’ drivers spending no less than $2,458 ...
U.S. – First BMW M3 delivered gets tuned by MORR Wheels
U.S. – First BMW M3 delivered gets tuned by MORR WheelsThe first 2015 BMW M3 delivered to the United States has been recently upgraded by the aftermarket specialists at MORR ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

nissan gt-r crash new zealand 1
ARK Performance Hyundai Genesis 1
Spy-Shots of Cars
Spy-Shots of Cars
Spy-Shots of Cars
bmw m6 convertible vilner tuning stormtrooper 1
Mercedes-AMG Performance Studio C63 AMG Edition 507 1
2015 bmw m3 tuning morr wheels 1
Ferrari F40 goes camping 1
Facelifted Kia Venga 1
2015 ford mondeo uk 1
euro-spec 2015 kia sorento 1

More automotive from inautonews
The driver of a Nissan GT-R has completely ruined his ride after losing control of the wheel and smashing into a tree in New Zealand. The Nissan GT-R was a revolution in the sports car segment, providing supercar performance for a lesser price tag and now, with the new generation being just around ...
read more
Inautonews Editors Section
Test Drive: Honda Civic Tourer 1.8 Executive MT
Test Drive: Honda Civic Tourer 1.8 Executive MT The new generation of the Honda Civic, has added, for the first time ever, an estate version, which is aimed towards families who aren’t exactly ...
Test Drive: Mercedes-Benz SLK 250 AT
Test Drive: Mercedes-Benz SLK 250 AT The new generation of the Mercedes-Benz SLK has been introduced back in 2010 and production began one year later. The roadster has seen the public ...
Test Drive: Mercedes-Benz ML 250 BlueTEC 4MATIC
Test Drive: Mercedes-Benz ML 250 BlueTEC 4MATICThe off-road adventure for Mercedes started in America back in 1997 with the introduction of the original M-Class generation. The model was notable ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: Toyota Tacoma for rear suspension problemsToyota has issued a recall for the Tacoma pickup trucks because of a problem with the rear ... Recall roundup: Opel Adam and Corsa for urgent steering problemsOpel / Vauxhall has issued a global recall for the 2014 Corsa and Adam models because of a problem ...
Safety Section