A situation that has been watched by car dealerships across the country — and probably a large number of consumers as well — took a turn that was not in the dealers’ favor Monday.
The high court in Massachusetts ruled that electric car manufacturer Tesla could sell its cars directly to consumers in that state, bypassing traditional car dealerships. The state’s dealership association had sued to block Tesla from selling cars at its own showroom in Natick, Mass.
In tossing the suit, the Massachusetts Supreme Court ruled that a law designed to protect dealers from possible unfair practices and abuses by vehicle manufacturers was not relevant in this case. That law covers manufacturers that already have dealer relationships in the state.
The Massachusetts State Automobile Dealers Association had argued that Tesla’s operation of its own showroom violated state law.
Tesla’s own dealer showrooms have been an issue in several states. The electric car-maker can not sell its own cars in Texas, Arizona and Maryland. However, as part of the deal Nevada made last week to bring Tesla’s battery factory to the Reno area, that state decided to allow direct sales.
In New Jersey six months ago, state regulators revoked Tesla’s license to operate two stores. But the legislature has passed a law — still not enacted — that would allow sales to resume.
Business News with Jack Katzanek 