Tesla Rides High, But Faces Formidable Foe: Car Dealers : NPR
Battles Emerge State By State
A bill being considered in North Carolina, where there are currently 80 Teslas on the road and another 60 expected, would prevent the company from selling vehicles online. In Virginia, the state denied the company a dealer license to open a store.
Texas lawmakers are expected to ignore an effort by Tesla to gain an exception to strict franchise laws that prohibit factory-owned dealerships. Last year, there were only 43 registered Teslas in the state.
In both Massachusetts and New York, legal efforts by franchise dealers to block Tesla's efforts were rejected — including attempts to shut down three Tesla stores and two service centers in New York.
Wrote New York Supreme Court Justice Raymond J. Elliott III: "Dealers cannot utilize the Franchised Dealer Act as a means to sue their competitors."
An effort in Minnesota to rewrite franchise law to prevent vehicle manufacturers from operating a dealership died in the Legislature.
But these are expected to be the early rounds.
The franchise fight in Massachusetts has moved to the Legislature. Minnesota dealers plan to submit new legislation next year. And there are also private battles about which O'Connell declined to elaborate.