Mass., NY dealer associations sue Tesla over company stores
As NADA seeks a meeting with Tesla about its sales network plans, two state dealer groups have sued the automaker over sales outlets that the dealers say violate state franchise laws.
The Massachusetts Automobile Dealers Association is suing over a store in suburban Boston, and the Greater New York Automobile Dealers Association over another in White Plains. The showrooms are modeled after Apples.
The sales strategy is necessary, wrote Tesla CEO Elon Musk in a blog post, because dealers have a fundamental conflict of interest between selling gasoline-powered cars and electric vehicles. It is impossible for them to explain the advantages of going electric without simultaneously undermining their traditional business, he said.
Dealers concerns about Tesla are a state-by-state issue depending on specific franchise law, wrote NADA Chairman Bill Underriner in a statement.
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