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Tesla Wins Lawsuit in Massachusetts

January 4, 2013

BOSTON — Tesla Motors won dismissal of a lawsuit brought by the Massachusetts State Automobile Dealers Association (MSADA), which sought to bar the electric-vehicle manufacturer from conducting sales on its behalf within the state. 

The association claimed that the company-owned store and service center model was in violation of state regulations for a Class-1 dealer license. But a Superior Court judge dismissed the case based upon the auto dealers' lack of standing and failure to state a claim. Last fall, the same judge denied a temporary restraining order and preliminary injunction requested by the state dealer association.

"We are delighted by the outright dismissal of this case and the validation that we are operating our business in compliance with the laws and expectations of the Commonwealth of Massachusetts," said Elon Musk, Tesla co-founder and CEO. "We are confident that other states will also come to this same conclusion and look forward to following through on our commitment to introduce consumers to electric vehicle technology in an open, friendly, no-pressure environment."

The MSADA is also pursuing a lawsuit it filed against individuals sitting on the Town of Natick’s Board of Selectmen, a group of elected officials who oversee the town. The board had issued in December a Class-1 Dealer License to Tesla to operate a retail outlet there.

"We think this subsequent lawsuit is a very unfortunate action taken by the Massachusetts State Automobile Dealers Association against a group of individual citizens who thoroughly reviewed our request for a Class 1 Dealer License and thoughtfully made a decision that was both legal and in the best interests of the citizens of Natick. We look forward to supporting the Board of Selectmen in this case," said Musk.

Automotive News reports that the Massachusetts State Automobile Dealers Association is currently debating whether to appeal the ruling. A lawsuit against Tesla’s franchise operations is also pending in the state of New York.

A representative from the MSADA was not immediately available for comment.

Comments

  1. 1. Jim Feely [ January 04, 2013 @ 01:52PM ]

    I'd fire the executive director of the association
    replace the board and definitely get rid of the law firm who prosecuted this case. Dumb

  2. 2. Jim Feely [ January 04, 2013 @ 01:52PM ]

    I'd fire the executive director of the association
    replace the board and definitely get rid of the law firm who prosecuted this case. Dumb

  3. 3. Mike Conn [ January 05, 2013 @ 07:34AM ]

    Good for Tesla! And for consumers! The dealer association is acting like union thugs trying to bully someone they see as not wanting to play by their rules.

  4. 4. scott cogan [ January 06, 2013 @ 01:50PM ]

    whatever happened to the old fashioned idea of a dealer committing a lot of money to a brick and mortar store to sell cars? does it not give an unfair competitive edge to tesla to bypass this model?

  5. 5. HOWELL CLARK [ January 07, 2013 @ 08:31AM ]

    OUCH, WHEN FORD MOTOR COMPANY ATTEMPTED TO DIRECTLY OWN 8 TEXAS STORES IN NORTH TEXAS THE STATE OF TEXAS PROMPTLY GAVE THEM ONE YEAR TO FIND FRANCHISE OWNERS AS THEY WERE BREAKING THE FRANCHISE RULES AND REGULATIONS THAT WOULD HAVE ALLOWED UN FAIR COMPETITION. I'M NOT FAMILIAR WITH MASSACHUSETTS LAWS GOVERNING FRANCHISE BUT THIS WOULD SURE SEEM TO FLY IN THE FACE OF IT.

 

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