The California New Car Dealers Association has cited a California state law prohibiting the same practice, and sent a letter to the state Department of Motor Vehicles, "asking the agency to crack down on Tesla's referral program," according to a report in Automotive News. The law being used is the 1968 California Motor Vehicle Sales and Finance Act, which opens with the proscriptive, "It shall be unlawful for any person to act as a vehicle salesperson without having first procured a license or temporary
As in the Virginia instance, Tesla says it doesn't believe state franchise laws should apply to the incentive program. The CA dealers sent the letter on August 26, now it's up to the director of the DMV to decide how to proceed. Even assuming the program gets tweaked in California as it did in Virginia, we can't imagine Tesla owners who no longer benefit from it will cease referring potential buyers to the company.