Tesla Entering Battle with Missouri Dealerships

Tesla Entering Battle with Missouri Dealerships

Add Missouri to the list of states that Tesla is fighting an uphill battle in.

Auto dealerships in the state filed a suit to block the American electric automaker’s direct-to-consumer sales approach and the Missouri Automobile Dealers Association is also accusing the Department of Revenue and its director, Nia Ray, of violating Missouri law by allowing Tesla to sell its vehicles in the state without a franchise dealer. The association is requesting that Tesla’s license is not renewed for its current University City store and wants the state department of revenue to prohibit granting the company other dealers throughout the state.

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Tesla opened its University City store in June 2013 and has installed multiple charging stations in the state. The company has issued a statement similar to what it has done in the past with other states calling in question its sales model. Like other states, the auto dealerships don’t mind Tesla’s being sold, they just want it done through traditional dealerships.

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[Source: Automotive News]

Discuss this story at our Tesla forum

  • Auto Motive

    Just look at the historical record of Henry Ford and the Dealers Assoc at that time. Once you see how Ford brought his fight to Federal Court and won the right to sell his car outright. Tesla has a excellent business model which benefits us the consumer with no haggle pricing, well educated professional reps and low financing rates. I want to see Elon Musk take the NADA to court just like Ford did back in the 20s. One day the Supreme Court will hear his case and if history repeats itself the only looser will be the entire dealer network.

  • Mark S

    Suppose to a free market economy? How can these association use the courts to try and monopolize the market? If Tesla wants to sell directly, it is their perogative. In a way this their freedom of expression, they want express sales pitch to their clients directly without some middle man who works for a dealership selling other brands diluting the offer or worse miss representing the Tesla brand.