Tesla wins court over direct sales in Massachusetts
Massachusetts’ highest court on Monday threw out a lawsuit seeking to block Tesla Motors Inc (TSLA.O) from selling its luxury electric cars directly to consumers in the state, enabling it to bypass traditional dealerships.
The state’s Supreme Judicial Court unanimously concluded that the Massachusetts State Automobile Dealers Association and two dealers lacked standing to block direct Tesla sales under a state law designed to protect franchise owners from abuses by car manufacturers.
The law “was intended and understood only to prohibit manufacturer-owned dealerships when, unlike Tesla, the manufacturer already had an affiliated dealer or dealers in Massachusetts,” she wrote.
“It’s a great decision,” Maron said. “The statute is very similar to statutes in other states. We have battles in New Jersey and other states with similar constructs, and we hope and expect the same interpretation would carry over to those venues.”
Last week, Nevada let Tesla make direct car sales to residents, as part of an arrangement to provide $1.3 billion of tax breaks for the company to build a giant battery factory.
In an unusual blog posting in April, three top U.S. Federal Trade Commission officials expressed opposition to laws banning direct sales, saying they could harm consumers.
Source: Reuters
