News

Tesla Heads to Connecticut Supreme Court

Order Reprints

July 12, 2019—Tesla is going to the Connecticut Supreme court over claims from car dealers that Tesla was using its gallery to sell cars, reported Electrek.

The Connecticut Automotive Retailers Association (CARA) has been lobbying to retain its monopoly on vehicle sales in the state by using old laws that prohibit automakers from selling vehicles to consumers without going through franchise dealerships. Those laws exist to protect dealerships against potential unfair competition against their own automakers, but they are trying to apply them to automakers who have never had franchise dealerships, according to the report. 

In states where Tesla is not yet allowed to sell directly to consumers, they still open store-like locations called “galleries” where potential customers can come and get information about Tesla’s vehicles and they are directed to go online if they want to order due to the sale restriction.

The car dealers alleged that Tesla was actually selling cars out of the location and filed a complaint with the DMV, which Tesla appealed. Tesla ended up losing but appealed. Now the Supreme Court confirmed they will be hearing the case.

No date has been set for the hearing.

 

Related Articles

Supreme Court to Take up Service Advisor Overtime Case

Supreme Court Agrees to Consider Internet Sales Tax Collection

BMW Fraud Class Action Suit Heads to Appeals Court

You must login or register in order to post a comment.