MADA Sues Missouri To Block Tesla Motors Inc Direct Sales

MADA Sues Missouri To Block Tesla Motors Inc Direct Sales
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After failing last year to block Tesla direct sales, MADA is now suing the State of Missouri for favoring the electric car maker

Tesla Motors was given the green light by Missouri authorities last year to continue with its direct sales strategy in the state, but seems like the Missouri Auto Dealers Association (MADA) is in no mood to spare the authorities or the electronic vehicle maker. MADA has filed a lawsuit against the State of Missouri to put the brakes on Tesla’s sales in the state, arguing that the automaker’s direct sales model creates a “non-level playing field,” according to the St. Louis Post –Dispatch.

No different outcome likely

Missouri’s acting Dept. of Revenue Chief at that time did not find any issues with Tesla’s sales model, pointing out that the company does not have any established franchise dealerships and suggesting that it is operating within the law. That was the reason why MADA was trying to get the law changed.

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When MADA could not achieve much with its efforts to change the law, it went the litigation route, but the results are expected to be more or less the same. Massachusetts and Missouri have the opposite political scenario, but the outcome of the litigation in Missouri is likely be the same as that of the Commonwealth.

Car dealers all over the country are not happy with Tesla’s direct sales model and have won support in some conservative States. Dealers built a national campaign talking about the benefits taken by buyers in the process of sales manipulations done by dealers.

A win for Tesla

Only recently, Tesla Motors was approved to build a showroom in San Antonio. The electric vehicle maker has asked for the rezoning of five acres of land for commercial use in the 2100 block of East Sonterra Blvd. As per current state law, Tesla cannot sell its electric cars in Texas due to the lack of an agreement with a dealership. After a showroom is established in San Antonio, area natives will get an opportunity to look at the Tesla Model S but will not be allowed to take a test drive or buy one. Tesla has already set up such showrooms in Austin and Houston.

When Tesla Motors was seeking permission to build the gallery, Bexar County Judge Nelson Wolff said, “I think it’s positive to have their showroom in San Antonio,” adding that it “shows that San Antonio is up with technology, blends with other efforts that we’re doing with solar power.”

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