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Tuesday, May 12, 2015

THIS JUST IN: Tesla Motors Inc (TSLA) Wins Approval For Direct Car Sales In Maryland, Starting October 1

Despite strong opposition from auto dealers, Maryland Gov. Larry Hogan signed a bill Tuesday that gives Tesla Motors Inc. the right to sell its luxury electric cars directly to consumers in the state, starting in October. Tesla has been challenging dealers in many states who say manufacturers should stick to the traditional franchise dealership model.

Currently, 25 states prohibit Tesla from selling its cars through its own boutique stores.

The Maryland law, specifically crafted for Tesla, allows “a manufacturer or distributor to be licensed as a vehicle dealer if the manufacturer or distributor deals only in electric or nonfossil-fuel burning vehicles.” It was approved by the state’s Legislature last month. In March, New Jersey Gov. Chris Christie, like Hogan a Republican, signed a similar bill into law.

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3 comments:

Anonymous said...

Now the charging station at the mall makes sense

Anonymous said...

It will be ok. Don't worry. There won't be any Tesla sales offices in Salisbury. Pohanka will still take your money. Besides, there isn't a consumer base for Teslas on the shore except for maybe Talbot county. FYI, they are very fun to drive especially with the insane mode.

Anonymous said...

The part that most customers dread is dealing with the dealership. From the sales people grabbing their commission, getting manager's approval, etc., the nickel and dime-ing does not end. No wonder the auto dealers are resistant. They have done this to themselves. The Tesla direct sales model may pave the way for other direct sales approaches. However, the auto dealers associations are well entrenched political players and it will take years to bring about any industry change.