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The Automobile Dealers Association in the state of Massachusetts was denied a request for a preliminary injunction against Tesla Motors Inc., which allows the American automaker to continue operating its store in Boston.
The dealers requested the Massachusetts Superior Court for a restraining order and injunction in hopes of stopping the Tesla-owned showroom from operating. The group is now considering an appeal and other judicial remedies, but currently hasn’t made a decision as to its next step.
“Tesla looks forward to continuing to focus on advancing the knowledge of EVs in a convenient, accessible environment,” said Shanna Hendriks, Tesla spokeswoman in an email. “We remain hopeful for a positive outcome of this case.”
SEE ALSO: Tesla Sued by Auto Dealers Association
One thing is for sure, the lawsuit isn’t going to be dropped any time soon according to Robert O’Koniewski, executive vice president of the Massachusetts association.
“Dropping the lawsuit is not an option at this point,” he said. “We feel very strongly that Tesla is operating a factory store outside parameters of our franchise law and our license law, and they are operating that store illegally.”
The injunction is part of an ongoing lawsuit in both Massachusetts and New York, where members of the Automotive Trade Association believe that Tesla is operating illegal dealerships in those states. The Tesla stores, which are mainly boutiques located in shopping malls and other high-traffic areas, have come under attack even though the automaker states that they comply with federal and state laws where they operate.
[Source: Automotive News]
By Jason Siu
Tesla is facing lawsuits in both Massachusetts and New York from members of the Automotive Trade Association, saying that the electric-car maker is operating illegal dealerships in those states.
Factory-owned dealerships are prohibited in many states according to the National Automobile Dealers Association. ”The big question for a lot of the states is do they have the kind of statute that addresses the issue of who’s allowed to be licensed to sell cars for their particular state,” said Mark Schienberg, president of the Greater New York Automobile Dealers Association.
Tesla says its boutiques are showrooms and nothing more. Instead, customers are directed to the company’s website for purchases. According to Tesla, the company complies with federal and state laws everywhere they are set up.
“They claim they’re operating under the guise of a non-sales showroom, and we call that out as an outright scam,” Robert O’Koniewski, executive vice president of the Massachusetts association said. These factory stores represent a problem to the association because they have a larger budget for advertising and facilities compared to dealers that are part of the association.
“We are looking down the road — what happens with China, what happens with India, with other manufacturers that come into the market,” he said. “We’re concerned about the precedent this sets.”
[Source: Automotive News]