Tesla Motors Inc (TSLA) Wins Court Case in Massachusetts Related to Direct Sales

Tesla Motor (TSLA)

Tesla Motors Inc (NASDAQ:TSLA) won a court battle filed by auto dealers who wanted the car manufacturer barred from selling to customers directly in its stores. The Massachusetts Supreme Judicial Court dismissed the case citing auto dealers “lack of standing and failure to state a claim.”

The Massachusetts State Automobile Dealers Association went to court 2 years ago alluding that Tesla Motors Inc (NASDAQ:TSLA), the Palo Alto, California based company, was breaking Massachusetts law by selling directly through its showrooms within the Commonwealth of Massachusetts.

“We are delighted by the outright dismissal of this case and the validation that we are operating our business in compliance with the laws and expectations of the Commonwealth of Massachusetts,” Elon Musk, Tesla’s co-founder and CEO, said in a statement. “We are confident that other states will also come to this same conclusion.”

Tesla Motor (TSLA)

The same body had some months back requested the court to issue an injunction stopping the car manufacturer from continuing with its sales, pending the determination of the case. However, that request too was dismissed and Tesla Motors Inc (NASDAQ:TSLA) allowed to continue with its business.

After the ruling, the executive vice president of the dealers association, Robert O’Koniewski, said that they are considering an appeal.

This is however not the only battle that the motor giant is facing. In the State of Georgia, dealers are up in arms trying to revoke the company’s dealer license. The state’s law dictates that a manufacturer is limited to selling not more than 150 vehicles on its own stores every year. The dealers are claiming that Tesla Motors Inc (NASDAQ:TSLA) has sold more than the maximum number in less than one year, which is in violation of Georgia State law as spelt out in the Atlanta Business Chronicle.

This article has been written by Victor Ochieng.

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