Tesla Model S
  • Tesla Model S
  • Tesla Model S

  • tesla model s
  • tesla model s

  • Tesla Model S
  • Tesla Model S

  • Tesla Model S
  • Tesla Model S

  • Tesla Model S
  • Tesla Model S

  • Tesla Model S
  • Tesla Model S

  • Tesla Model S
  • Tesla Model S

  • Tesla Model S
  • Tesla Model S

  • Tesla Model S
  • Tesla Model S

  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
Tesla Motors has been fighting to sell cars in many states, but has come up against laws prohibiting the electric automaker to exercise its direct-to-consumer business model. Such has been the case in Pennsylvania. Recently, though, Tesla worked out a deal with the Pennsylvania senate to approve a bill allowing five Tesla stores in the state, with the blessing of the Alliance of Automobile Manufacturers. The bill, though crafted with Tesla in mind, doesn't specifically name the California-based company.

That bill made it to the desk of Governor Tom Corbett last month, who signed it into law, opening the door for Tesla to sell more cars in the state. The legislation exempts electric vehicles from a law that bars manufacturers from opening their own dealerships. Nathan Spade, senior aide to the bill's sponsor Senator John Rafferty, called the bill "a means to provide the consumer with another option" and "a positive addition to the marketplace in Pennsylvania."

Two members of the state House voted against the bill: Representatives Mark Gillen and Daryl Metcalfe, both Republicans. Gillen explains that he felt the bill gave Tesla special treatment, which goes against his free-market values.

In addition to allowing Tesla to open new stores in the state, the new law also officially legitimizes the automaker's current store in the King of Prussia Mall, about which there have questions concerning legality. It isn't clear if the Board of Motor Vehicle Manufacturers approved that store in 2013 made a mistake, but that point appears to be moot now. Tesla also currently has plans to open a store in Devon, PA.

Tesla still has some pretty big barriers to contend with in other states, though. In Texas, New Jersey, Maryland, Virginia and Arizona, for example. The battle continues between the automaker and dealership associations.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 48 Comments
      Bernard
      • 11 Months Ago
      The Tesla stock is on a roll! $259, I can't wait until it breaks into the $300's :-D
      knightrider_6
      • 11 Months Ago
      Republicans talking about Free Markets is like Britney Spears talking about parenting
      OptimusPrimeRib
      • 11 Months Ago
      But i thought Republicans were all for the free market. Except when it affects the people that bribe, I mean lobby them? Color me shocked!
      markrogo
      • 11 Months Ago
      These limited-footprint deals are Tesla's dealings with the devil. Tesla will have 14 stores total in the 3-state region that is New York, New Jersey, Pennsylvania. BMW has more than that in >New Jersey alone<. The idea that Tesla won't be dramatically hurt by a small dealer footprint come the Model 3's release is quite frankly ludicrous. They will have no choice but to sell through franchise or get these laws changed yet again.
        Neez
        • 11 Months Ago
        @markrogo
        Incorrect. Tesla should not over extend themselves with too many dealerships. Keep in mind that tesla does not service the vehicles in these dealerships, they just sell cars there. So it serves the customer no added benefit to have the dealership close by, just close enough to drive it home after they buy it. Keep in mind that it costs money to run a store. You have to pay each employee and you have to pay a lease on the building. If you set up too many stores, your expenditures go up, but your sales don't necessarily correspond the same, because that same buyer might have been willing to drive to the other further store to buy his tesla. People like myself generally like road trips when picking up a new vehicle. So you are taking away sales from other stores, by putting up a store closer to the buyer. Tesla is still a niche vehicle, people won't buy them on a whim like other high pressure dealerships. They want a tesla, they buy a tesla. They'll drive 2 hours to get it.
        purrpullberra
        • 11 Months Ago
        @markrogo
        Yep. or...They will develop "deployment centers" that aren't service, aren't sales, they're not Supercharger stations (although that may be a good location for some). And again they will fall outside of the traditional manufacturer/dealership paradigm. I worry about the distribution problem too. I am going to submit my call for Tesla to enshrine in their corporate doctrine that they NEVER employ, sell to or work with anyone who has ever been a dealership owner,+ all family relations, an employee at one or any other potential NADA members or affiliates. I don't really expect it to work but.... It is paramount to keep the enemy outside of the gates! I'd rather Tesla never sell the Model3 than sell it through dealerships owned by regular dealership folks. I sense Elon feels this way too but that he'd rather someone else do the ugly job of proposing something that may seem punitive so he can say, "...well I do what my shareholders want me to...." But the next guy that comes along has these atrocious laws to come up against as well. That's why I started Allow Tesla Direct Sales on FB. It's quite small and pointless. But I had to do something.
      andrewhartley11
      • 11 Months Ago
      "Gillen explains that he felt the bill gave Tesla special treatment, which goes against his free-market values" What a crock! A free market would allow Tesla and any other auto manufacturer to sell their cars however they want. Wonder how much the auto dealers "contributed" to his campaign.
        TsarBomba
        • 11 Months Ago
        @andrewhartley11
        I was thinking the same thing. How is banning 'direct to consumer' a free market ideal? Isn't giving dealerships control of sales and blocking competition a type of special treatment? In a free market dealerships would have to compete against manufacturers. If they offered a better experience, then the market would support their model. I can't think of any other major consumer good that bans manufacturers from selling direct to consumer.
      Aisha Brutella
      • 11 Months Ago
      Why would anyone buy one of these sh1tboxes anyway? A car that runs on batteries? That sounds like a toy to me!!!
      Pancakes
      • 11 Months Ago
      They'll need it, because their US and Europe demand has tanked. It's started to look dated too, it's a 6 year old car, announced in 2008.
        Dean Hammond
        • 11 Months Ago
        @Pancakes
        agreed, there should be a refresh soon, there was an aftermarket company that showed some Tesla specific spoilers and ground effects, looked GREAT....X is coming and the sub 40k car, so while I am still a sceptic, I cant see mmore product doing any more than helping Tesla aquire more sales...
        purrpullberra
        • 11 Months Ago
        @Pancakes
        Only ignorant know-nothings keep up the lies about demand. Pancakes-for-brains is apparently topped with syrupy lies and FUD. YUCK!
        Grendal
        • 11 Months Ago
        @Pancakes
        Just remember Pancakes that there is no advertising happening. If they were really tanking then you'd see the first Tesla commercial out there. As it is they are still selling every car they make as fast as they can make them. Care to make a wager that they hit their yearly goal of 35,000 delivered?
      Avinash Machado
      • 11 Months Ago
      Great news.
      Louis MacKenzie
      • 11 Months Ago
      All hail Tesla. They got the balls to fight the stealers networks. I hope this trend continues as well. It is good for small start up car companies.
      purrpullberra
      • 11 Months Ago
      There is definitely going to be a delivery fee. Maybe if you pick it up at a delivery depot you can save that cash. But I don't necessarily think service centers will be the best spots for delivery. I'd prefer delivery places to stay separate so as to fend off dealership comparisons. But I also see Tesla renting out space in huge parking lots to use a delivery points. They might not need more than a portable building for the folks who work there. It could be very busy or dead for days, who knows. I see a very flexible future. I just hope that no dealership people ever get their dirty hands on anything involving Tesla's getting to the customers. Oh, I also see there being a different world for ModelS and X owners vs. Model3 owners such that the Moidel3 people pay for delivery to home or work. Not second class buyers really just less free frills. I do see some fleets of Tesla's being accrued at some sites for loaners and such and maybe those will be a significant source of on-demand sales rather than everyone ordering their car and waiting for it. I too see most people wanting to order their car exactly as they want it and Tesla would be dumb to prevent that.
      fuzzter
      • 11 Months Ago
      "Gillen explains that he felt the bill gave Tesla special treatment, which goes against his free-market values." You mean the market protection that auto dealers have that is crony capitalism? Puleeze. interesting way to look at 'free markets'
        HollywoodF1
        • 11 Months Ago
        @fuzzter
        The key word was "felt." That way, he can be wrong. Because he was doing what he "felt." So he can keep taking money from the car dealers, and pretend to be in favor of the "free market" in front of his constituents. Believing and feeling are the only way Republicans could justify support this kind on ludicrous hypocrisy. Clearly, facts and thinking are way off the table.
      11fiveoh
      • 11 Months Ago
      I'd be shocked if tesla isn't bankrupt in
    • Load More Comments