Tesla Motors Loses Missouri Dealership Case

Tesla Motors has been selling its battery electrical cars directly to buyers in Missouri from 2013, however a court judgment last week nullifies the California automaker’s state dealership license.

The Missouri Auto Dealers Association (MADA) filed a suit in 2015 suggesting that it was unfair that Tesla was provided a license by the Department of Revenue to open its own dealership.

MADA’s grievance concentrated on state law, which prohibits auto producers from operating their own dealerships to sell its automobiles straight to consumers, bypassing the franchise dealership network.

Cole County Circuit Court Judge Daniel Green concurred, and stated that, “[Under state law] a single entity may not produce cars for sale in Missouri and possess a Missouri new motor vehicle dealer license.”

The ruling indicates that Tesla is not a franchisee and the state’s Department of Revenue need to not restore Tesla’s license.

The judge’s decision affects 2 Tesla store places in Kansas City, one in St. Louis and a new shop set to open in the St. Louis suburban area of Chesterfied.

Customers can still go to the stores, select the design car they want, but will need to make the purchase online.

Tesla representative Will Nicholas said the company disagrees with the judgment and will appeal it. In a statement, he said, “Tesla will take all suitable steps in the courts to ensure that Missouri customers continue to deserve to pick how they buy their automobiles.”

Dealer laws much like Missouri’s in several states have placed obstructions for Tesla. Legislators in a few of those states are attempting to change laws to let the company run its own dealerships.