Tesla: New Wording in Missouri Bill is ‘Sneak Attack’ by Dealers
In a statement posted on its website, Tesla denounced the last-minute addition of wording to legislation in Missouri that would effectively ban the automaker from selling directly to consumers in the state.

PALO ALTO, Calif. — In a statement posted on its website last week, Tesla Motors admonished Missouri lawmakers for adding new language to an existing bill that would require consumers to purchase vehicles through franchised dealerships, making the company’s sales model illegal. The bill passed the Senate on May 7 and could move to the House for a final vote.
“We have just become aware of a last-minute attempt by the auto dealers lobby, via pressure on legislators, to bar Tesla from selling its vehicles direct to consumers in the state,” the statement read, in part. “This extraordinary maneuver amounts to a sneak attack to thwart due process and hurt consumer freedom in Missouri.”
House Bill 1124 was passed by the House on April 17 minus the language banning direct-to-consumer vehicle sales. Dealers have since thrown their weight behind the new wording. Tesla faces similar hurdles in states like New Jersey, Arizona and Texas, where the direct sale of vehicles to consumers has been banned.
“This change is not an innocent, minor amendment. It is completely unrelated to the original bill, which was about laws regarding all-terrain vehicles, recreational off-highway vehicles, and utility vehicles,” read Tesla’s statement. “It is also a complete 180 from current law. The current statute only bars franchisors from competing against their franchisees (for example, Ford cannot compete against Ford dealerships).”
The automaker currently operates a service center in Missouri and plans to open another in Kansas City later this year.
“This debate should be held in the full light of day with all sides being given an opportunity to make their case. Instead, the dealers are again trying to ram through a provision under the cover of darkness and without public debate,” Tesla said in its statement. “The people of Missouri deserve better from their elected officials.”
More Compliance

Dueling Banjos in the Car Biz
Reports and accounts at variance show auto dealers’ trust profiles have risen in many consumers’ minds but that there remains a need for greater transparency by some.
Read More →
NADA and the Miracle on 34th Street
Automotive dealers should follow the National Automobile Dealers Association's consumer-friendly guidelines in order to minimize their legal risks.
Read More →
Another Look at a Recent Data Breach
Get caught up on the most pressing legal and regulatory matters facing dealers and F&I professionals, including data security, shotgun purchases, and inconsistent payment quotes.
Read More →

The Best Thing a Dealer Can Do to Avoid Legal Problems
Citing the issue is a strategy borrowed from the legal field itself.
Read More →
Fines of the Times
Civil penalties for noncompliance with federal auto retail and finance rules and regulations can add up quickly. Use this checklist to cover your bases.
Read More →
Goodwill and Car Dealers
A dealer goodwill tale is a cautionary tale worth paying attention to.
Read More →
The Regulatory Empire Is Striking Back
President Trump - entropist and corporate disruptor in consumer law
Read More →
How to Clear a Red Flag
Refine and enforce your dealership’s FTC-mandated ID theft-prevention program to ensure no transaction goes awry.
Read More →
