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Wiki New Bills Introduced to End Bans on Tesla’s Direct-Sales Model

As new legislative sessions begin to ramp up in states across the country, Tesla is pushing to make its direct-sales business model legal in states it’s still restricted.

There are seven states that currently ban Tesla’s business model or restrict its number of stores and service centers that could soon change their laws.

TMC Member Pluto went through all the states where Tesla has restrictions and the and found the following bills introduced:



Connecticut – HB 5285

Nebraska – LB 51

New Mexico – SB 243

Oklahoma – SB 790

South Carolina – S 379

West Virginia – HB 2219



Pluto noted: “Many states seemed to not have started their legislative sessions or introduced all their bills yet so I’ll have to check for more later. Interestingly, Texas appears to be almost done introducing bills and I found nothing there.”

 
Last edited by danny

Tam

Well-Known Member
Nov 25, 2012
12,118
11,149
Visalia, CA
...New Mexico.

I understand that New Mexico is like Michigan that prohibits Tesla direct sales and "other service".

2006 New Mexico Statutes - Section 57-16-5 — Unlawful acts; manufacturers; distributors; representatives.

"It is unlawful for any manufacturer, distributor or representative to:

....

"V. be licensed as a dealer or perform warranty or other service or own an interest, directly or indirectly, in a person licensed as a dealer or performing warranty or other service; provided that a manufacturer or distributor may own a person licensed as a dealer for a reasonable time in order to dispose of an interest acquired as a secured party or as part of a dealer development program; "
 

Pluto

is a Planet
Nov 17, 2015
464
806
Auburn, AL
So white states are "Direct sales laws not challenged yet" or "Tesla is allowed to sell freely, but doesn't have any stores"? (Except NM as stated above).
I just don't have any information on these (yet). I focused on states where I did find Tesla challenged/was challenged or have stores/service centers/galleries in. Basically I'll only include states that I have sources for.
I understand that New Mexico is like Michigan that prohibits Tesla direct sales and "other service".

2006 New Mexico Statutes - Section 57-16-5 — Unlawful acts; manufacturers; distributors; representatives.
I found the same thing too. It was actually not that hard to find honestly, maybe I'll work on some of the white states. And it looks like this law originated in 1953 (though it's hard to know for sure. I know it's prior to 1999 at least.
How about an explanation of the combined states in the key?

Why are WA and IN Blue/orange?

Why is OH Yellow/Orange and NY Orange/Yellow (Does the order of the color matter?)
This is because Tesla has been grandfathered in to be the only automaker able to have certain rules for them. For other automakers, the orange/red color applies. I tried distinguishing this by specifying "Tesla" for blue and yellow, and "Automakers" in general for orange and red. When a state has only one color, then you can assume that the same rules apply to all automakers in the state.

I also explain each state's status in the "Latest Updates" section. Maybe I can change the legend to add in a "T" logo when the rules are different for Tesla. Then in Washington for example, there would be a blue "T" surrounded by an orange background. Ideas?
 

azred

Active Member
Apr 12, 2016
2,192
3,384
Chandler, AZ
Tesla does not operate stores freely in Arizona. They got a judge to allow the Scottsdale location a few years ago and followed that up with a second store in Tempe two years ago. But they got pushback so they closed the Tempe store last year (it is still a service location) and opened a second store in Scottsdale.
 

Pluto

is a Planet
Nov 17, 2015
464
806
Auburn, AL
Tesla does not operate stores freely in Arizona. They got a judge to allow the Scottsdale location a few years ago and followed that up with a second store in Tempe two years ago. But they got pushback so they closed the Tempe store last year (it is still a service location) and opened a second store in Scottsdale.
I'll take a closer look into this, thank you.
 

Tam

Well-Known Member
Nov 25, 2012
12,118
11,149
Visalia, CA
Tesla.com has Salt Lake City listed as a store.

Google reviews of Tesla Salt Lake City store say people have purchased cars in the SLC Store.

Here's a Youtube's explanation:


In 2015, Tesla created wholly-owned subsidiary Tesla UT but the license was not approved citing the need to enter into a franchise agreement.

Tesla UT then entered into dealership agreement with Tesla but it's still not approved citing that Tesla has ownership stake in Tesla UT.

In 2017, the UT Supreme Court upheld the regulation citing that's its job and refused to consider whether the regulation was justifiable or not.

Thus, the current process of buying a new Tesla in Utah that has complying to the Utah ban is described in:

Taking delivery of a Tesla in Utah?

1) Go to Tesla Store in Utah to get all your questions answered but sales people can't sell you one.
2) Go to the web and order one and make payment on the web.
3) Sign all paperworks that California Tesla sent you and send them back.
4) Pick your car at Tesla Store.
5) Drive to DMV to pay sales tax, registration fee and get your license plate on the spot.

It feels like buying from Utah store but the actual monetary transactions are on the web to Tesla in California and not a Tesla in Utah.
 

Tam

Well-Known Member
Nov 25, 2012
12,118
11,149
Visalia, CA
...Wyoming...

Interesting thinking from 2017 Wyoming Legislature for allowing Tesla direct sales:

"lawmakers enthusiastically proclaiming the move will give a bump to Powder River Basin coal."

"Rep. Nathan Winters, a Thermopolis Republican, noted that power plants in about 30 states generate electricity with Wyoming coal. He argued that supporting the bill would be a way to support Wyoming’s fossil fuels."
 

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