The Minnesota Automobile Dealers Association (MADA), has introduced a law which would prohibit vehicle makers from operating dealerships within the state. Such a law would be a step stricter than the current law, which prohibits an automaker from competing directly against a dealer selling the same make of car.
Tesla is looking to open a retail store at the Mall of America in Bloomington, MN, as well as a service center in Edina, about 10 miles southwest of Minneapolis. Tesla's Diarmuid O'Connell told Automotive News that the company is simply "trying to preserve our ability to operate," while MADA's Scott Lambert called the prospect of dealers competing on the retail front against automakers "not fair."
Tesla won a legal victory of sorts in January when a Massachusetts judge threw out a lawsuit from that state's dealers association over a similar issue. Later that month, the Massachusetts State Automobile Dealers Association appealed the decision.