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Dealers claim factory-owned Tesla stores are illegal

Unlike typical dealers, Tesla has a network of "stores" and "retail stores." While reservations can be made for a new Model S or Roadster at the retail store, Tesla says other versions of the store merely direct potential customers to make their reservation online. Most of these boutique-style stores are in shopping malls, and Tesla asserts that they are not sales facilities. It's an assertion with which traditional auto dealers are taking issue.
Dealers associations and networks across the country are doubling down their efforts to make Tesla's OEM showroom network illegal. Tesla has opened 17 stores in 10 states, as well as the District of Columbia.
Dealership associations contend Tesla's notion that sales are not made at these stores, stating that the showroom experience is still part of the sales process. To that end, dealer groups across the country have embarked in legal battles with the electric carmaker. The Illinois Secretary of State has informed Tesla that it is illegal to list CEO Elon Musk as the owner of its Chicago store. The Greater New York Automobile Dealers Association is looking into legal options against Telsa's Westchester store, as well as two others in New York. In Massachusetts, the opening of a store in the suburban Natick Mall is having its legality challenged by the dealer association in that state. California has laws in place that allow for a manufacturer to run its own dealership, as long as it is not within 10 miles of an existing dealer. That practice caught the ire of Chrysler dealers when the American automaker opened its own multi-brand showroom near downtown Los Angeles.

BMW dismisses Tesla tie-up talk

Despite recent rumors to the contrary, don't expect to see much collaboration between Tesla and BMW in the near future. Based on some rather prickly statements from the German automaker, Elon Musk might have even burnt some bridges in Bavaria with his latest proclamations. The spat stems from Musk's recent interview with German magazine Der Spiegel where he discusses future collaboration with BMW on "battery technology or charging stations" and the possibility of a battery factory in Germany. But apparently, any future tie-ups are news to the Bavarian automaker. In an interview with the German business publication Wirtschafts Woche, an unnamed spokesperson for the company claims Musk said it all for PR value and swats down most of the statements. BMW has no intention of acquiring Tesla shares, and they aren't working together on any tech. There's not much chance for future cooperation on a battery factory in Germany, either. BMW believes that the cells can just as easily be purchased from suppliers, like other auto parts. The one slight concession is that the spokesperson said that the German automaker would be willing to supply Tesla with carbon fiber. That's not an exclusive offer, though, and the company is open to negotiate such a deal with any interested automaker.

Ed Welburn retires, Tesla offered nuclear plant in France, and more | Autoblog Minute

Greg Migliore recaps the week in automotive news, including a look at GM design chief Ed Welburn's retirement, the French wooing of Tesla, and more. GM Lincoln Tesla Autoblog Minute Videos Original Video lincoln motor company