New restriction for Tesla car sales
Tesla Motors signed a contract to lease the ground
floor space of a building in Red Hook.
While Utah’s current law states that the EV company
While Utah’s current law states that the EV company
has to hire a franchised dealer to sell
its vehicles, Tesla says that it can't sell its cars through
traditional third-party dealerships
because they have to convince customers its electric
car is better than a typical internal
combustion engine, a pitch that would be a conflict
for a dealer that also relies heavily
on regular car sales.
The company already has a showroom in Chelsea.
It seems like Tesla isn’t keen on renewing.
Similar to a few other states, law makers in Utah
refuse to let the Electric Vehicle
automaker sell its cars directly.
A new bill has been proposed that would place
restrictions on the electric cars' sales.
The organization has been battling with Utah
New Car Dealers Association (UNCDA)
and traditional automakers, like General Motors Company (NYSE:GM),
over the direct-sales matter since last year.
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