Tesla CEO Says Company-Owned Outlets are Legal, EV Adoption Requires “A New Business Model”
Cars

Tesla CEO Says Company-Owned Outlets are Legal, EV Adoption Requires “A New Business Model”



On Monday, May 25, Tesla opened its first store this year at the Westchester shopping mall in New York. Right from the start, NADA, the National Automobile Dealers Association, had issues with Tesla's Apple-like store approach, while many pointed out that 48 states prohibit company-owned car dealerships.

In litigation-obsessed America, it’s no surprise that the Greater New York Automobile Dealers Association has challenged Tesla’s three NYC stores. Its lawsuit was dismissed, but dealers in New York and Massachusetts sued Tesla last week claiming it was violating franchise laws.

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