/ 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 They were originally enacted to foster competition.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!

Top 10 Ferrari F1 drivers No.3 Gilles Villeneuve
Top 10 Ferrari F1 drivers No.3 Gilles Villeneuve"I know that no human being can do a miracle. Nobody commands magical properties, but Gilles made you wonder. He was that ...
Renault is apparently planning Twingo RS after all
Renault is apparently planning Twingo RS after allA hot version of the new Twingo generation is under consideration for being put into production. The similarities between the ...
[VIDEO] Meet the Renault R.S. 01 race car
[VIDEO] Meet the Renault R.S. 01 race carRenault has officially pulled the wraps off the brand new R.S. 01 race car which is coming with a futuristic design and an ...
Exclusive – Dodge not offering Charger and Challenger SRT Hellcat in Europe
Exclusive – Dodge not offering Charger and Challenger SRT Hellcat in EuropeThe powerful Dodge Charger SRT Hellcat and the Challenger SRT Hellcat will continue to be offered stateside as the company has no ...
Skoda Fabia Combi spied
Skoda Fabia Combi spiedThe new generation of the Skoda Fabia is getting ready to receive its second body style, the Combi. Our spy photographers have ...
[VIDEO] 2015 Volvo XC90 makes video debut
[VIDEO] 2015 Volvo XC90 makes video debutThe new generation of the Volvo XC90 has recently made its video debut with the Swedish based automaker releasing its first two ...
Leaked – Lada Vesta and XRAY 2 Concept
Leaked – Lada Vesta and XRAY 2 ConceptLeaked images with the new Lada Vesta Sedan and the XRAY 2 Concept have ended up on the web ahead of the two models’ debut ...
Dacia Sandero RS hot hatch planned
Dacia Sandero RS hot hatch plannedThe Romanian based automaker Dacia is planning to introduce a hot RS version of the popular Sandero hatchback which will not be ...
Mazda2 MPS rendered
Mazda2 MPS renderedThe first renderings with the upcoming Mazda2 MPS have recently hit the web, providing us with a first look on what the compact ...
Romanian gypsy crashes his Lamborghini Murcielago
Romanian gypsy crashes his Lamborghini MurcielagoA Romanian gypsy from Craiova has managed to crash his Lamborghini Murcielago after speeding and losing control of the ...
[VIDEO] See a Ferrari 250 GTO on the Laguna Seca
[VIDEO] See a Ferrari 250 GTO on the Laguna SecaA classic and very expensive Ferrari 250 GTO has been recently taken to the Laguna Seca raceway for a quick lap. Usually when ...
Chevrolet Niva Concept leaked, going to Moscow Motor Show
Chevrolet Niva Concept leaked, going to Moscow Motor ShowThe first images with the new Chevrolet Niva Concept have recently leaked ahead of its public debut scheduled for the 2014 Moscow ...
Next-gen Ferrari 458 to get entry-level version too
Next-gen Ferrari 458 to get entry-level version tooA new report highlighting the new Ferrari 458 Italia is suggesting that the impressive right might sport an entry-level version, ...
Meet the Infiniti ESQ, a Chinese rebadged Nissan Juke
Meet the Infiniti ESQ, a Chinese rebadged Nissan JukeThe first images with the brand new Infiniti ESQ have been recently released by the Japanese based automaker, ahead of its public ...
Europe – 2015 Nissan 370Z Nismo gets detailed
Europe – 2015 Nissan 370Z Nismo gets detailedThe 2015 Nissan 370Z Nismo, in its European version, has been recently detailed by the car manufacturer, for the very first ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Renault R.S. 01 race car 2
Spy-Shots of Cars
lada vesta sedan 1
2015 mazda2 mps 1
lamborghini murcielago crash romania gypsy craiova 1
chevrolet niva concept 1
Infiniti ESQ 1
2015 Nissan 370Z Nismo Europe 1
2015 toyota camry global 1
2015 volvo xc90 1
bmw i8 display car 1
2015 skoda fabia interior

More automotive from inautonews
"I know that no human being can do a miracle. Nobody commands magical properties, but Gilles made you wonder. He was that quick” Jacques Laffite told Nigel Roebuck in a conversation over 30 years ago. First he was seen as a madman, very fast, but erratic, with huge natural talent and an ability ...
read more
Inautonews Editors Section
Top 10 Ferrari F1 drivers No.3 Gilles Villeneuve
Top 10 Ferrari F1 drivers No.3 Gilles Villeneuve"I know that no human being can do a miracle. Nobody commands magical properties, but Gilles made you wonder. He was that quick” Jacques Laffite ...
Test drive: Ford Ranger XLT 2.2 TDCi 150 HP
Test drive: Ford Ranger XLT 2.2 TDCi 150 HPFord is well known around the world for its F-150 pickup truck that actually doesn’t have a global presence. A paradox, yes? Well, actually no. ...
Top 10 Ferrari F1 drivers No.4 Niki Lauda
Top 10 Ferrari F1 drivers No.4 Niki LaudaThe man that saved Ferrari…These are the first words that came in mind when you heard about Niki Lauda, “The computer”. He was fast, tough in ...

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 US: Boston drivers rule the risky-prone rankingsAccording to Allstate Corp., the bottom of the annual ranking of the nation’s 200 biggest urban ... Volvo heralds the possibility of “deathless” carsThe Volvo Car Group says it’s now one “step closer” to its safety ideal – no one killed or ...
Safety Section