The Industry's Leading Source For F&I, Sales And Technology


Tesla Feeling the Heat in Ohio, California

December 19, 2013

COLUMBUS, Ohio and ORANGE COUNTY, Calif. — Tesla Motors is being targeted again — this time, not just by car dealers, but by a Southern California fire department.

The Columbus Dispatch reported today that a group of Ohio dealers have filed suit against the electric carmaker for allegedly violating state law after opening its first retail outlet in the state. The Ohio Department of Public Safety and Bureau of Motor Vehicles were also named as defendants in the suit.

Earlier this month, legislators in Ohio dropped an amendment that would have prohibited Tesla Motors from operating a dealership in the state.

“It’s incredibly hypocritical,” James Chen, Tesla’s vice president of regulatory affairs and associate general counsel, told The Columbus Dispatch of the lawsuit. “This is the same kind of bullying from the dealers we’ve faced in other states. The dealers, when they’re defeated in the court of public opinion, in the media and in the legislature, they then go to the courts.”

The Ohio dealers’ lawsuit surfaced on the same day a report by Reuters revealed that an overheated charging system in a Tesla Model S sedan may have caused a garage fire in Orange County, Calif.

The fire, which reportedly occurred Nov. 15 in Irvine, Calif., occurred as a result of an electrical failure in the charging system for an electric vehicle, fire officials told Reuters.

The news outlet explains the fire is unrelated to the three road fires in Model S sedans that occurred in the past two months.


  1. 1. Bubba B [ December 19, 2013 @ 12:52PM ]

    What do you guys think about Tesla? Are they really that big of a threat to franchised dealers? They seem like a small niche market to me, and the cars are obviously expensive. It must be the high end franschises that really want to take it to Tesla.

  2. 2. Mick [ December 21, 2013 @ 06:14AM ]

    Four Tesla fires now? How is Musk going to spin this one? Memo to Elon - electric fires have been a thing since electricity has been a thing.


Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  



BHPH Dealer to Refund Late Fees

Iowa Attorney General Tom Miller charged Auto Special Inc. with not complying with state law when it collected late fees from customers who were less than 10 days late on payments.