Tesla ready to go to court for its rights on direct sales image

Tesla is preparing a lawsuit to lift the ban over the direct-sales law in the US, as it seeks to expand its shopping-network.

Tesla will reveal today its highly-anticipated affordable electric Model 3 car, on which the California-based automaker relies to take its sales to the next level. For the expansion plan to succeed, Tesla needs a wider shopping-network, but selling cars directly to consumers is prohibited by law in six US states: Arizona, Connecticut, Michigan, Texas, Utah and West Virginia. Therefore, Tesla is preparing to make a federal case to get rid of this ban, according to a report from The Wall Street Journal. For now, Tesla
hopes a combination of state legislation and approved dealer applications will allow the automaker to open up shops in these states, but a lawsuit is definitely coming if this strategy is not working.

The paper said the upcoming suit relies on legal precedent: a 2013 federal appeals court ruling in New Orleans that determined St. Joseph Abbey could sell monk-made coffins to customers without having a funeral director’s license, a case brought on by a casket shortage in New Orleans in the wake of Hurricane Katrina.

Tesla fights the direct-sales ban, as it targets to boost by 80 percent its deliveries in 2016 to around 80,000-90,000 units, aiming to produce up to 500,000 electric cars per year by the end of the decade.

Via The Wall Street Journal