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.
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.
