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Mass. High Court Hears Arguments In Tesla Case

BOSTON — The Massachusetts Auto Dealers Association is trying to put the brakes on the business model used by electric car company Tesla.

The Massachusetts Supreme Judicial Court heard oral arguments Tuesday in a case to decide whether the auto dealers have legal standing to block Tesla from selling its cars without franchises.

Tom Vangel, who represents the auto dealers, said Tesla’s operations are against the law in Massachusetts.

“The statute is clear that no manufacturer shall own a dealership,” he said.

Tesla says the law was meant to protect a local GM dealership from a potential GM-owned factory store.

“Increase in competition is in the public interest, that’s what Tesla is is striving to do,” said Richard Campbell, who represents Tesla.

Tesla is fighting similar battles in many other states.

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  • http://neilblanchard.blogspot.com/ Neil Blanchard

    Tesla has no dealers, so no one needs protection from unfair advantage.

    This case is a cynical attempt to obstruct Tesla from doing (more) business in Massachusetts.

  • rich4321

    What consumer “protection” do the car dealers have to offer to customers?
    The only protection they offer is to protect their ill-gained wallets.

    The car dealers are nothing more than a bunch of unscrupulous leeches and thieves, who cheat customers with the dealers’ bogus “rust protection” among other false claims.

    The car dealers make car buying a most dreaded ordeal and a most unpleasant experience.

    What right do they have to tell the car makers where to sell cars? Who says the car makers must sell their cars through the dealers? What right do the car dealers to tell the car buyers they must buy a car through these dealership criminals? This archaic law in Massachusetts is probably invented by some mafia owned car dealerships decades ago, this outdated law needs to be nullified.

  • B. R. Fly

    This is a crock of nonsense. Dealers are middlemen. If an entirely new company comes along and cuts them out, how does this harm consumers??
    It’s a battle of business models. If we are both selling the same thing, I should not get to dictate to you which business model you use.

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