Tesla Motors Inc (NASDAQ:TSLA) won a legislative victory in the State of Washington after the legislature removed a provision restricting the electric manufacturer from obtaining additional licenses to sell cars directly to consumers through its own stores.
Last month, the fans of Tesla Motors Inc (NASDAQ:TSLA) drove their electric vehicles to the Capitol of the State of Washington to oppose the restriction against the company. At the time, some lawmakers were already working on amending the bill to withdraw any prohibition on Tesla to sell its vehicles.
The dealers in the state were also happy with the bill because it strengthened existing rules requiring automakers to sell through them except Tesla Motors Inc (NASDAQ:TSLA). Auto dealers decided to compromise after feeling pressures from a wealth group known as defenders of planet saving technology.
According to Seattle Rep. Reuven Carlyle auto dealers “realized they a had problem and very quickly began negotiating” when they started to feel the pressure from the supporters of Tesla Motors Inc (NASDAQ:TSLA). Washington State Governor Jay Inslee is expected to sign the bill.
The decision of the Washington State legislature serves as a breather for the electric car manufacturer as it is battling restriction against its business model of selling directly to consumers from state to state. Its most recent set back was in New Jersey. Tesla Motors Inc (NASDAQ:TSLA) will no longer be able to renew its license for its stores in the state after the state Motor Vehicle Commission approved a regulation that prohibits automakers to sell directly to consumers.
The states of Arizona and Texas have similar rules while Colorado, Georgia, and Virginia implemented restrictions against the electric car manufacturer. Early this year, Tesla Motors Inc (NASDAQ:TSLA) won a lawsuit against the Massachusetts State Automobile Dealers Association after a superior court judge ruled that the auto dealers lack standing and failed to state a claim. The auto dealers alleged that Tesla Motors violates state laws for directly selling its vehicles in Massachusetts. Last year, the electric car manufacturer succeeded in countering legislation intended to block its sales model in North Carolina and Minnesota.
Elon Musk, CEO of Tesla Motors Inc (NASDAQ:TSLA) explained that the company did not chose to sell its electric cars through dealerships because they have “fundamental conflict of interest” between promoting gasoline-powered cars. He explained that it is more difficult to sell a new technology car. According to him, Inevitably, they revert to selling what’s easy and it is game over for the new company.”
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