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.”

 

[Tam]

...links....

1/10/2018--Rhode Island:

Tesla cleared to open first RI store in Warwick

 

[Polly Wog]

Thanks for creating this. I can say that New Mexico should be RED (although I can't provide you with a link). Also, maybe you can find a map that shows Alaska and Hawaii?

 

[Tam]

Hawaii?

4/26/2016 Hawaii sales ok:

https://cca.hawaii.gov/pvl/files/2013/06/mvi_160426.pdf

 

[Pluto]

Thanks for the feedback guys, I knew about Hawaii but forgot to include it. I'll work on getting an updated version out soon with sources for all the blue states and hopefully New Mexico.

 

[HankLloydRight]

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).

 

[Tam]

...feedback guys...

If possible, please label all states including white and blue states.

 

[Tam]

...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; "

 

[Gwgan]

manufacturer or distributor may own a person licensed as a dealer for a reasonable time

So temporary slavery is ok in NM?

 

[dhanson865]

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?)

 

[Pluto]

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]

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]

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]

..."Tesla" for blue and yellow, and "Automakers"...

Too confusing!

Can we just narrowly focus on Tesla Sales, not non-Tesla Sales and other Automakers?

If the law has grandfathered Tesla, then it's a positive state for Tesla even though the law may prohibit future automakers like NIO.

 

[RobStark]

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.

 

[Tam]

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.

 

[RobStark]

Here's a Youtube's explanation:

[

That process you describe is what happens in Texas.

In Texas, Tesla calls their locations "Galleries" not stores.

Until recently, Tesla could not even open the door to a "gallery" in Utah.

 

[rhumbliner]

You can add Wyoming as a blue state. A law allowing Tesla to operate was passed last year. Unfortunately, just because Tesla is allowed doesn’t mean they’ve opened up any stores, yet.

 

[Tam]

...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."

 

[Cosmacelf]

I’ll second the suggestion for keeping the graphic to be Tesla specific. Too much info/confusing to also incorporate status of other manufacturers.