Tesla gets reprieve in Utah direct sales challenge

The Utah legislature will study HB384 some more, rather than let the supposedly pro-Tesla (but really anti-Tesla, according to Tesla) bill become law.

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Another state, another fight between Tesla and state legislators over the ability to sell cars directly to customers. This time, the battle ground is Utah, where HB384 was recently defeated. Well, paused, at least. While the bill was promoted as a piece of legislation that would help Tesla (it would have given Tesla a license in the state), the automaker was asking supporters to defeat it because it would, “usher in the most restrictive, anti-competitive and anti-consumer law of any state in which Tesla is licensed to sell.” One of those restrictions? Tesla could not keep inventory in the state or let customers sign financial documents in its stores.

Tesla had worked with Kim Coleman (R) on the bill, but it wasn’t the only one. When the text was finally released, the automaker didn’t like what it saw, and decided that its case in the Utah Supreme Court was a better place to try for a win rather than deal with the text as submitted.

A Tesla spokesperson told AutoblogGreen:

Tesla is grateful that HB 384 was sent to interim study rather than passed. HB 384 would have allowed Tesla to be licensed in Utah, but only with severe restrictions that would have harmed our Utah customers. These restrictions were inserted into the bill at the request of our competitors, who would like to dictate the terms by which our customers can be served. Because this bill was not passed, Tesla will be able to move forward with our pending lawsuit before the Utah Supreme Court and hopefully vindicate our right to serve our Utah customers without restriction.

As with so many of these state fights, expect the battle to flare up again at some point.