Tesla Dealer License Denied in Virginia
Tesla Motors Inc. has 33 days to appeal a ruling issued Monday denying the electric car maker a dealer license in Virginia.
Virginia DMV Commissioner Richard Holcomb turned down the request, saying he wasn’t presented with clear evidence that there isn’t an independent dealer available to operate a franchise in a manner consistent with the public interest. His statement regards an exception to the law that allows cases like Tesla’s in such an absence.
The brand’s business model operates like a shopping mall storefront rather than a traditional dealer. Customers come into a showroom where one or two cars are available to sit in and learn about. But there are no cars available for sale at any of those locations.
SEE ALSO: Tesla Wins License to Sell Cars in Boston Suburb
Prospective buyers can take a Tesla Model S out to test, but only in a car reserved for that purpose. That’s something causing a stir in more areas than just Virginia, where the Virginia Automobile Dealers Association is opposing Tesla being given a store license.
Tesla fought a similar battle in a suburb outside of Boston… and won. But what brand boss Elon Musk is busy trying to crack into new markets like Texas, which he says could be the second best market behind California.
[Source: Automotive News]
Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.
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This will be an interesting case of how to apply the Interstate Commerce Clause. Tesla could win a case against VADA and VDMV for unfair restraint of trade. Of course, they could also get hit with an antitrust lawsuit. *pops popcorn*