TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Tesla takes Utah car sales fight to state supreme court

Discussion in 'Tesla, Inc.' started by RobStark, Nov 7, 2016.

  1. RobStark

    RobStark Well-Known Member

    Jul 2, 2013
    Los Angeles
    Tesla takes Utah car sales fight to state supreme court

    MICHELLE L. PRICE Associated Pres

    SALT LAKE CITY (AP) — Tesla on Monday took its fight to sell its sleek electric cars in Utah to the state supreme court, saying a state law that bars car makers from owning dealerships doesn't apply to the company.

    Tesla attorneys told Utah's Supreme Court that the state wrongly denied the company a license to sell its cars last year. Tesla sells its cars directly to customers rather than using independent dealerships.

    The company contends it must sell its own cars because its business depends on convincing customers that its electric cars are better than a car with a gas engine.

    Tesla attorneys argued Monday that Utah law doesn't block car makers from selling directly, it only blocks car makers from owning a dealership that's set up as a franchise.

    State licensing officials and a powerful group of Utah car dealerships disagreed, arguing Tesla must comply with Utah's dealer law.

    Justices on the five-member court did not issue a decision in the case Monday, but they did question where in state law a car manufacturer is expressly barred from selling its cars directly. The justices also asked if the franchise law applies to Tesla because it set up a subsidiary company in Utah to sell its cars.
    • Informative x 3
    • Like x 1
  2. ecarfan

    ecarfan Well-Known Member

    Sep 21, 2013
    San Mateo, CA
    Sounds promising for Tesla! Thanks for posting Rob.

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.