Dealers in Georgia latest to oppose Tesla showrooms

Wed, 03 Sep 2014

Tesla has been fighting challenges from dealer groups in several states for years due to the company's decision to sell directly to customers at stores rather than through franchise dealers. The business has won some of these battles like its recent compromise in Pennsylvania, which allows the company to open five stores there. Now, Tesla has another legal struggle ahead of it because the Georgia Automobile Dealers Association is hoping to shut down the brand's boutiques.

The Georgia dealers recently filed a petition to revoke Tesla's dealer license in the state and prevent it from reapplying for another one, according to Automotive News. The company currently operates just one store in Marietta, GA, but it reportedly has two more locations planned around Atlanta in the future. The association claims that Tesla's license limits it to direct sales of a maximum of 150 vehicles a year. It's now selling more than that, but attempting to increase the restriction.

If Tesla wants to keep selling cars in the state, which boasts high incentives and strong popularity around Atlanta for EVs, it needs to switch to franchises, according to the dealers. "No one should be allowed to act as if they are above the law, especially when there is a simple path to compliance that everyone else has agreed to follow," said Bill Morie, president of the association, to Automotive News.

As in other states, Tesla isn't going to let the dealers revoke the company's license without a fight. The business issued the following statement to Autoblog when asked for comment about the Georgia petition:

"Tesla has been and remains in full compliance with all Georgia laws in the opening and operation of its retail operations in that state. The petition filed by the Georgia Automobile Dealers Association is nothing more than a thinly veiled attempt to stifle new innovation and eliminate consumer choice by trying to establish a monopoly that restricts the way consumers can buy new vehicles. As with similar battles in other states, Tesla will use all means necessary to defend itself and the rights of consumers to decide how and where they spend their hard-earned money."

By Chris Bruce