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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.

2013 Motor Trend Car of the Year: Tesla Model S [w/video]

Eleven cars enter, one car leaves. Silently and with zero emissions.
Tesla has earned one of the most coveted prizes in the automotive world, as its Model S has taken home the Golden Calipers as the 2013 Motor Trend Car of the Year. In the process, the Model S beat out a field that included 10 other contenders.
In case you were wondering, this is the first time an electric car has earned this accolade. No internal combustion here, folks. In an impressive run the Model S was also named Automobile Car of the Year and one of the 25 Best Inventions of the year by Time Magazine.

New Jersey Becomes Third State To Ban Tesla Sales

State motor vehicle officials have approved a regulation that would require all new car dealers to obtain franchise agreements to receive state licenses, a move critics say will hurt the electric-car industry's attempts to expand. The regulation, adopted Tuesday by the state's Motor Vehicle Commission by a 6-0 vote, effectively prohibits companies from using a direct-sales model, which cuts out the middleman and takes vehicles directly to customers through smaller retail establishments. It will take effect April 1. The regulation was supported by the New Jersey Coalition of Automotive Retailers, which has noted that state law has long required automakers to sell their vehicles through dealers. But Palo Alto, Calif.-based Tesla Motors, one of the electric-car companies that would be affected by it, called it "an affront to the very concept of a free market." Tesla said in a statement posted on its corporate website that it has been "working constructively" with the commission and Republican Gov. Chris Christie's administration since last year to delay the proposal so it could be handled through "a fair process" in the state Legislature. The company said the commission and the Christie administration went "beyond their authority to implement the state's laws at the behest of a special interest group looking to protect its monopoly at the expense of New Jersey consumers." Administration officials disputed Tesla's claims. "Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law," spokesman Kevin Roberts said. "This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning." Tesla has two retail locations in New Jersey and has planned to expand in the state in an effort to sell its electric cars, which retail for around $60,000 before incentives. Related Gallery Electric Cars And Hybrids Don't Have To Be Frumpy By the Numbers Tesla Car Dealers