You are using an older browser version. Please use a supported version for the best MSN experience.

"Sneak Attack" Could Bar Teslas From Being Sold in Missouri

Motor Trend logo Motor Trend 5/9/2014 Karla Sanchez

Tesla is on the offensive once again after state lawmakers in Missouri are attempting to ban the direct sale of the electric cars to consumers under what the automaker calls a "sneak attack."

The Palo Alto-based electric carmaker has invested lots into the state so far. It invested $2 million into the Service center that's currently located in St. Louis, and it plans to open another in Kansas City later this year as part of a $1 million investment. However, new language inserted into a bill that had previously been focused on off-road vehicles "would force Missouri consumers to purchase new vehicles only through middleman franchised dealers," the automaker said on its blog. 2014 Tesla Model S© Provided by MotorTrend 2014 Tesla Model S

Tesla says the new language was not included in the bill when it was passed by the house on April 17. However, the language suddenly appeared in the bill when the Senate passed it last night "after zero public consultation," and Tesla says the bill "could soon move to the House floor for a final vote, essentially without debate."

"This change is not an innocent, minor amendment," the automaker went on to say. Besides the new language having nothing to do with the original bill, Tesla also points out that it does indeed comply with the current statute that only bars franchisors from competing against their franchises. However, like New Jersey did, Missouri is expanding "the scope of the existing law well beyond its original intent," in which they have redefined "franchisor" to mean "manufacturer." 2013 Tesla Model S© Provided by MotorTrend 2013 Tesla Model S

"To be clear: this is worse than a mere case of dealers trying to protect an existing monopoly -- this is a case of dealers trying to create a monopoly," the company said.

Tesla does have its supporters, though. Some officials at the FTC said they thought anti-direct sales rules were "protectionist," so it's possible the unfair treatment toward the electric-car-maker could be put to a stop in the near future.

Source: Tesla

2013 Tesla Model S© Provided by MotorTrend 2013 Tesla Model S
AdChoices
AdChoices

More from Motor Trend

Loading...

image beaconimage beaconimage beacon