Friday, 30 July 2021 20:15

Tesla’s War Against Direct Sales Continues with Big Win in Virginia

Written by Joey Klender, Teslarati
Tesla showroom in Century City mall, Los Angeles. Tesla showroom in Century City mall, Los Angeles. Teslarati


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Tesla’s war with laws that prohibit the direct sale of cars to consumers continues, but the automaker is making progress across the U.S.

The Virginia Department of Motor Vehicles has approved Tesla to sell its cars and will open three new locations in the state.


July 27, Virginia DMV Commissioner Richard Holcomb stated Tesla is now eligible to open the three sales locations in the state. This decision goes against the wishes of the Virginia Automobiles Dealers Association (VADA), which will not plan a legal challenge.


Holcomb decided to grant Tesla permission to open the stores based on public opinion. Prominent officials and members of the general public expressed support for Tesla stores in the regions of Charlottesville, Arlington and Norfolk.


“Much of that support revolves around the fact that Tesla’s business model is unique and outside the traditional model of motor vehicle dealerships in Virginia,” he said in the decision.


However, the CEO of the VADA, Don Hall, said the decision was an “easy way out,” according to the Richmond Times-Dispatch.


“The decision frankly was not in compliance with the laws of Virginia,” Hall stated. “It was an easy way out. I don’t believe the DMV in any way, shape or form carried out its responsibility.”


Tesla will still need to obtain a license issued by the Motor Vehicle Dealer Board to have permission to operate as a car sales entity. The three stores have not had their locations finalized, the company said.


State laws in Virginia indicate automobile manufacturers must sell their vehicles through...

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