Tesla Can Now Sell Cars In Delaware
Tesla Can Now Sell Cars In Delaware
The electric vehicle company can now sell its new age vehicles in the first state.
According to CarScoops the battle to sell in Delaware started a few years ago.
“In 2019, the Delaware Department of Motor Vehicles (DMV) rejected Tesla’s proposal to establish a dealership within the state, citing a violation of the Motor Vehicle Franchising Practices Act, which prohibits automakers from owning dealerships. However, Tesla was permitted to operate a “gallery” at the Christiana Mall and a service center in Newport, as long as vehicle sales did not occur at those locations.”
These laws were instituted years ago to keep the auto business fair. The fear was that if automakers could directly sell to consumers that local car franchises would feel too much pressure.
The work around for people who wanted a Tesla was to venture to neighboring states and bring the electric vehicle to Delaware. Of course with today’s technology prospective buyers could purchase a Tesla via the internet.
Tesla does not work through third party dealerships when selling their electric vehicles. This fact has helped them win appeals across the country as they try to expand their footprint.
Tesla was prohibited from selling their vehicles in Delaware by the State Supreme Court just last year.
This changed on Monday.
“The Supreme Court reversed that decision and sent the case back to Superior Court, noting that the franchise act was enacted to address the disparity in bargaining power that permitted automobile manufacturers to exert economic pressure over their franchises. The justices said the law’s definitions exclude Tesla because the company sells its vehicles directly to consumers without using independent franchise dealers.” (Yahoo)
No word yet on where an official Tesla shop will be but the local Tesla galleries are still open.
Tesla Can Now Sell Cars In Delaware
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