Currently, Tesla is prohibited from directly selling vehicles in four states, namely Arizona, Maryland, New Jersey, and Texas. If a Georgia auto dealers’ group has its way, there may be a fifth state where Tesla couldn’t use its tried-and-true business model when selling vehicles to consumers.
Last Friday, the Georgia Automobile Dealers Association made it official and filed a complaint with the Georgia Department of Revenue, claiming that Tesla’s direct-selling model is in violation of state laws. Cited in the case was the fact that Tesla sold 173 Model S sedans in its only store in the state, located in suburban Atlanta; this is 23 more cars than the 150 vehicles allowed per carmaker-owned store. And while this may seem like another case of dealers groups trying to block direct sales in all ways, shapes, and forms, GADA insists that is not the case. “There’s real demand for electric cars in Georgia,” said GADA spokesman Derrick Dickey in a statement. “All we’re asking is that Tesla sell cars in compliance with the law.”
After days of not speaking regarding the Georgia/GADA issue, Tesla finally issued a statement yesterday evening, rebutting the dealers group’s claims that Tesla failed to comply with state laws on direct sales. “Tesla has been and remains in full compliance with all Georgia laws in the opening and operation of its retail operations in that state,” read the succinct email statement sent to Bloomberg by Tesla VP of Communications and Marketing Simon Sproule. He further added that the GADA complaint served as a “thinly veiled attempt to stifle new innovation and eliminate consumer choice.”