Virginia Allows Tesla To Establish Traditional Dealership

by Virgil Hilts

Published: October 4th, 2013

virginia allows tesla to establish traditional dealership

One week after we mused that electric carmaker Tesla would never be able to defeat current state laws prohibiting factory direct automobile sales and thus must join the franchised dealer model, the company proved us wrong thanks to the Commonwealth of Virginia.

According to Automotive News, the Virginia Department of Motor Vehicles and, amazingly, the Virginia Automobile Dealer Association have come to an agreement to allow Tesla to open one dealership in the state. Tesla currently operates a order-taking outlet in a mall in Tysons Corner, a suburb of Washington, D.C., while their nearest service center is in Rockville, Maryland. Although details of the agreement are sealed, it is likely that Tesla will be allowed to build a full service store in the Tysons Corner area.

Tesla has been wrangling with the state for some time. Their request to open a dealership had previously been denied by the state’s DMV and the company was appealing the ruling in a county court. The next step is for the Virginia Motor Dealer Vehicle board to grant Tesla a business license.

Tesla had previously won approval to sell its vehicles in the state of New Hampshire but having a point near the nation’s capital is huge for the company’s exposure. Besides having near-perfect client demographics for the product, it affords CEO Elon Musk the opportunity to showcase his dealership to members of Congress, whom he is considering lobbying to pass a federal law allowing factory direct car sales to customers.

As this agreement has been in the works for some time, we cannot say if our editorial had any influence on the Virginia entities, but we cannot help but wonder if TTAC commenter and dealer apologist Ruggles, who posted a remarkable one hundred and seventy-four comments on our story last week, might have been in Richmond this week, wearing the lawmakers down until they caved.

#Dealers #ElonMusk #Tesla #Virginia

Virgil Hilts

More by Virgil Hilts

Comments

Join the conversation

2 of 310 comments

Ruggles on Oct 11, 2013

RE: "Author: doctor olds Comment: @Vulpine- "BUYERS are saying GM needs to shut down one of those brands..." Absurd!! GMC is strong and profitable, Sierra represents plus business at higher unit profit. The fact the GM production system builds Sierra as s trim level of a Silverado is one element of why this is a good business plan. Your notions about the cost elements are disconnected from business reality." Good points. Another small detail is that GMC is the brand handled by Buick dealers, who have lost Olds and Pontiac. In a market with Chevrolet, the GMC dealer provides a competitor that can work in the consumer's favor.

Like Reply
Ruggles on Nov 30, 2013

Has the irrational exuberance flamed out here?

Like Reply

Recent Comments

Theflyersfan I think color is FINALLY starting to return to car lots. After what seems like over a lost decade of nothing but shades of gray, whites, and black, I'm seeing a lot more reds and blues creeping into luxury car lots. Except Audi and Volvo. They still have at least 6-8 shades of gray/silver. But they at least have a nice green. Honda and Acura seem to have a bunch of new colors. And all carmakers need to take a serious look at the shades of red seen at the Alfa Romeo lot and tell themselves they want that because that looks amazing.
Bd2 Well, it's no Sonata, no does it have the panache of the Optima.
Teddyc73 "eye-searingly"?
Teddyc73 I applaud anyone who purchases a vibrant, distinct or less popular color. We need these people. Our road ways have turned into a dreary gloomy sea of white, black, silver and greys, most with the equally lifeless black wheels. Mr Healey is guilty of contributing to this gloom apparently. It looks like a black and white movie across the nation when grouped with our grey houses with grey interiors. Totally dull and lifeless. And what is with this awful hideous trend of dull grey with black wheels showing up everywhere? It's on everything. Just awful. Come on people! I'll keep my Ram 1500 with it's deep rich sparkling Western Brown paint as long as I can.
Shipwright As my Avatar shows I had an '08 GT 500, Grabber Orange convertible. I now own a '12 GT 500 Kona Blue coupe.