Report

Connecticut inches forward on legalizing Tesla stores

But there's still time in the state's legislative session to reject the automaker.

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CHINA-AUTO-SHOW-ENVIRONMENT-TESLA / Image Credit: JOHANNES EISELE via Getty Images
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Tesla currently operates just a single service center in Connecticut, but the state may be moving towards letting the automaker open stores within the state. There are still two weeks left in the legislative session, but the state senate finance committee has approved a bill that would permit the automaker to open three company-owned stores. Tesla's regional sales manager Will Nicholas told Teslarati that he hopes the state will "embrace American innovation," but the bill will undoubtedly face opposition from local franchise trade group as well as the United Auto Workers.

A similar bill was discussed early last year after state senator Art Linares was forced to go to a dealership in White Plains, New York, to buy his car. That bill was ultimately rejected despite some protests that the state loses income when any of its moneyed citizens go to neighboring states like New York or Massachusetts to buy their high-priced electric vehicles. State senator Michael McLachlan, who opposes the bill, told the CT Post that, "The only revenue I see here is $10,000 and I believe that that is kicking aside literally hundreds of new-car franchisees who should be considered for this opportunity to buy Tesla."

Tesla continues to do battle with a number of holdout states that reject new laws that would allow for Tesla to open its own stores, or at least severely limit the company's plans to do so. Tesla was sued in March by the Virginia Automobile Dealers Association (VADA) because of its plans to open a second dealership within the state. Utah also rejected a bill last month that would've allowed Tesla to sell cars there. Tesla itself opposed that particular law because the company said the bill was overly restrictive.

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