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Minnesota Dealers Oppose Tesla Stores Opening, Propose New Law

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Tesla Motors Stores, Like This One in Newport Beach, are Facing Serious Opposition in States like Massachusetts and Minnesota
Tesla Motors Stores, Like This One in Newport Beach, are Facing Serious Opposition in States like Massachusetts and Minnesota

Tesla Motors is finding some resistance to its expansion, where Minnesota dealers oppose Tesla Stores opening.

The current laws regarding automobile dealers prohibit automakers from opening their own dealerships to compete with franchise dealerships, but the Minnesota Automobile Dealer Association [MADA] wants to amend the law to make it even more strict.

Tesla Motors has already dealt with flak over its Apple-Store-style dealerships, which are company-owned and sell only Tesla vehicles. Recently, in Massachusetts, a judge threw out the lawsuit pitting the Massachusetts State Automobile Association [MSAA] against Tesla Motors on the same law, but there’s a catch.

Tesla Motors doesn’t have any dealerships to compete against, that is, there is no one selling Tesla vehicles except for Tesla Motors. MSAA as appealed that decision, but maybe Minnesota dealers will give them another way to oppose Tesla Stores opening in their state.

Minnesota dealers oppose Tesla Stores opening in that state as well, where Tesla is expecting to establish a Tesla Store in Bloomington and a Tesla Service Center in Edina, just outside of Minneapolis.

MADA isn’t challenging Tesla Motors on the current law though, but is seeking to amend the law to state that no manufacturer can sell their cars directly to the customer in Minnesota. If such a law were passed, it could effectively block Tesla Motors from setting up any Tesla Stores in Minnesota, and set a precedent for other states to do so.

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