Boston, Massachusetts – Massachusetts’ Supreme Judicial Court has ruled (pdf) that car dealers in that state cannot block Tesla from selling its electric cars directly to customers.
Car dealers nationwide have been fighting Tesla’s direct sales strategy, saying it violates dealer franchise rules in most states that require manufacturers to sell vehicles through franchised dealerships. But in Massachusetts, the high court ruled that those laws were meant to protect dealers from manufacturers, not the reverse.
The court ruled that dealers could only bring complaints against manufacturers with whom they conduct business. Because Tesla does not have dealers, no dealership in the state would have standing to reject its business practices.
Tesla has been fighting for years to be able to sell cars without establishing a dealership network. In New Jersey, the state revoked a dealership license earlier this year, but lawmakers are working on possible exceptions to that ruling. And in Nevada, the company won the right to sell directly to the public as part of the $1.3 billion incentive package to build a massive battery plant near Reno.
Source: Massachusetts Supreme Judicial Court