Maryland signals it will follow Virginia in denying Tesla a license to retail cars without a dealer
Hot on the heels of Virginia regulators last week rejecting Tesla Motors bid to open a retail outlet in Tysons Corner, Maryland regulators are moving ahead on a similar course of action. Like Virginia, where DMV Commissioner Rick Holcomb last week ruled that Tesla didnt make the case that it should be able to retail its electric cars in the commonwealth without a dealer, Maryland has well-established, strong dealer licensing laws with specific requirements for retailing new vehicles. Preliminary, but credible, indicators are that Maryland regulators will be no more inclined to approve Teslas design studio retail model, with no service department or dealer operator, than Virginia.
Tesla has the opportunity to appeal Holcombs ruling in Virginia, either back through the DMV where new evidence would be required or in court. In the meantime, Marylands position on Teslas dealerless business model should be moving forward shortly.
Tesla retails vehicles in about ten states and the District of Columbia via its design studios. Whether the exotic California based electric carmaker will change its business model to clear dealer licensing hurdles in more states remains to be seen. Teslas larger-than-life CEO, Elon Musk, has other companies that he has founded and for which he has designed products. One such company is SpaceX that has developed space launch vehicles that has garnered for Musk a $1.6 billion contract with NASA and President Obamas praise. And yes, it appears that Mr. Musk is well connected in high level political circles.
Stay tuned.
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