But Kentucky law poses a complication, since it largely bans auto manufacturers from owning, operating or controlling a dealership. Instead, that power rests with local franchises.
Tesla, however, long has resisted those local arrangements. It favors company-owned stores and direct sales, part of a strategy that co-founder and CEO Elon Musk has said
reflects Tesla’s unique technology and approach.
So what is being proposed on the roughly 4.5-acre site near Interstate 64 and Blankenbaker Parkway? It depends on who you ask.
Tesla has not responded to an email sent Friday morning seeking clarification about its plans.
But John Rougeux, president of the Tesla Owners of Kentucky club, said he believes the company is looking to open a service center, not a dealership. For now, Tesla owners in Louisville must drive to Cincinnati for service, although the manufacturer has mobile technicians as well.
Middletown Mayor Byron Chapman also said his understanding is that Tesla doesn’t plan to open a dealership, but rather a store where owners can “pick up” cars once they purchase them. He said it’s tentatively scheduled to open during the first half of 2022; it would replace a Harley Davidson motorcycle dealership that is planning to move.
The Kentucky Motor Vehicle Commission licenses auto dealers, manufacturers and distributors in the state. Carlos Cassady, the commission’s executive director, said in an email that Tesla isn't currently licensed or have an application pending.
But he said a service center would not need a commission license. Routine business approvals and licenses would be needed for that, such as satisfying local zoning requirements.
Tesla has been registered do business in Kentucky since 2019. The property it is eying is already zoned for auto repair and sales, and a development plan for the property filed with Metro Planning & Design Services has been approved.