Just days before the direct-to-consumer electric car company pioneered by Elon Musk is slated to open a store in Buckhead, the company is asking a judge to allow them to sell their vehicles without the need for dealerships.
Tesla plans to open a location in Lenox Square Mall on Nov. 21, but a statewide association of automobile dealerships are seeking a ban on sales of Teslas in Georgia, BuckheadView reports.
The Georgia Automobile Dealers Association (GADA) filed a petition with the Department of Revenue in late August asking for the ban, claiming Tesla’s business model of selling cars directly to buyers without the use of licensed dealerships violates the state’s Motor Vehicle Franchise Practices Act.
Tesla argues that GADA’s application of the act is too broad, as its provisions only apply to franchisors and franchisees, and since Tesla has no franchises the act does not apply to them. Tesla also argues that their selling of vehicles directly to consumers does not hurt any GADA member’s business.
Although Tesla can sell 150 vehicles a year directly to consumers due to an exemption in Georgia law, the company would like to be able to sell as many cars as their customers demand per year in the Peach State.
A judge will rule on Tesla’s request to throw out GADA’s petition on Dec. 5.
Tesla already has stores in Decatur and Marietta, and is looking to install charging stations in Atlantic Station. A full charge takes an hour, and gives the Tesla Model S a 256 mile range.
The Tesla Model S is a fully electric car that runs in price from $70,000 to $120,000, though eco-friendly state and federal tax credits take some of the sting out of the price tag.
According to the Wall Street Journal, Atlanta is the second-biggest electric car market in the United States, outpacing Seattle, Los Angeles, and San Diego. Atlanta was the only non-West Coast city to hit the top 14 markets for electric cars.
Source: http://patch.com/georgia/buckhead/tesla-fighting-georgia-dealerships-right-sell-directly-consumers-0
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