Tesla is looking trouble in the face again, this time because the California New Car Dealers Association says its advertising is in violation of various state and federal laws.
Complaints by the association say the California-based electric car company advertises federal tax credits and cost of ownership among in a way that misleads consumers.
“We would like the DMV to investigate whether Tesla has violated the law,” Brian Maas, president of the California New Car Dealers Assn., told the L.A. Times. “At the minimum we would hope they would get Tesla to stop issuing advertisements in the form they are currently doing.”
For Tesla, battling dealer associations is becoming routine. Usually, the electric car manufacturer manages to come out on top. Most states have allowed the brand’s direct-to-customer sales model, but the brand lost its battle earlier this year with dealers in Texas.
“We don’t have any quibble with Tesla’s ability to sell cars, it’s how they are selling cars that is the problem,” Maas told Automotive News.
According to the Congressional Budget Office, only 20 percent of tax payers qualify for the full $7,500 tax credit Tesla mentions in its advertising. The group is also taking issue with Tesla for advertising external savings in its final payment quotes. By including potential gas savings and federal tax credits, they argue that Tesla is offering misleading information in its advertising.