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Tesla-Utah Scuffle

Tesla-Utah Scuffle
March 06
14:53 2015

Tesla LogoBy Aaron Kellar

Innovative American car maker, Tesla, is being denied a license to operate in Utah, despite having already planned a grand opening of a new dealership in Salt Lake City, today (March 6th).

Due to a state law that is in place, car manufacturers are not allowed to own more than 45% of a dealership, which means a mandatory partnership with franchisees.

A bill that is currently in house, proposes to change that, to allow Tesla a license to operate without any kind of franchise partnership in the state of Utah.

The bill which is more of an amendment, than a new law on its own, would allow Tesla to sell directly to its customers, but only online.  The dealership would then be used as a pickup spot for customers who purchased their vehicle online.

Tesla still wouldn’t be allowed to sell directly from the dealership without a franchisee middleman, however.

The company has been forced to overcome this issue in other states, such as Texas, and here in Arizona.

Tesla sells electric cars and produces batteries for various car makers, including Mercedes-Benz.

The company is set to begin sale of the 3rd generation of their lineup in 2017.  The new model is aimed at being affordable to the general public, with an expected starting price around $30,000-35,000.  It is dubbed, the “Tesla Model 3.”

Those in Arizona and Utah who wish to purchase one, will have to make the drive to California or Colorado, if the bill doesn’t pass.

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