Tag archives for tesla lawsuit

Lawsuits filed against Tesla stores in NY, MA

tesla roadster in retail store



Questions about the legality of Tesla selling its electric vehicles in its own retail stores have been floating around since the days of the Roadster. Last week, the recent wranglings between auto dealer associations and Tesla stores in New York and Massachusetts were moved along in courts of law, proving once again that EVs won’t arrive without hassle.



Specifically, Automotive News reports, the Massachusetts State Automobile Dealers Association (MSADA) has filed a complaint in the Norfolk County Superior Court over the Boston-area Matick Mall Tesla store. A hearing over a potential preliminary injunction is supposed to take place this week. In this state – and others that prevent factories from owning dealerships – you can’t technically purchase a Tesla in a Tesla store. Instead, potential buyers are told to place an order on the Tesla website. Tesla says this complies with local laws. Some local dealers obviously disagree. Robert O’Koniewski, MSADA executive vice president, told AN, “They claim they’re operating under the guise of a non-sales showroom, and we call that out as an outright scam.”



Over in the Empire State, Tesla was sued in New York State Supreme Court both by the Greater New York Automobile Dealers Association and a dealer member. Here, one of the claims against Tesla is that stores owned by automakers are participating in an unfair fight, since small dealerships don’t have as big a budget for advertising and store improvements.



In 2010, the president of the Colorado Automobile Dealers Association said his feeling, “is that a manufacturer-owned store as a business model violates the spirit of the state law here. But not a single person is complaining about it, and it’s kind of a back-burner thing for us. I imagine that if we start getting complaints from our membership, we would move it up to a front-burner thing.” Guess which burner is turned on now?

By Sebastian Blanco

Developer sues Tesla over proposed New Mexico Model S plant

Tesla Model S - front three-quarter view



New Mexico may be The Land of Enchantment, but at least one developer from the state is less than charmed with Tesla Motors.



The electric-vehicle maker has been sued by Rio Real Estate Investment Opportunities for what the developer says was an agreed-upon deal for Tesla to produce its Model S battery-electric sedan in New Mexico, according to website Gigaom.



Tesla allegedly reached an agreement in early 2007 to have Rio Real Estate build a 150,000-square-foot factory and lease it out to the automaker for $1.35 million a year for 10 years. Instead, Tesla decided to start Model S production in California after reaching an agreement with Toyota in 2010 to make the cars at the old NUMMI Toyota-General Motors joint venture plant in the San Francisco Bay Area. We asked Tesla for comment on the matter, but Tesla spokeswoman Shanna Hendriks told AutoblogGreen that the company does not comment on pending litigation.



Tesla, which in June started deliveries of the Model S, said last week that its second-quarter loss widened by 84 percent to $106.5 million because expenses jumped and revenue fell as the company geared up for the car’s debut.

Related GalleryFirst Ride: 2012 Tesla Model S Beta

By Danny King

Massachusetts Dealer Denied Injunction Against Tesla

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 Dealers Association Lawsuit Dismissed

Dealers in Massachusetts suing Tesla over what they say is an illegal dealership lost today when a judge dismissed the case from the court. 

Norfolk County Superior Court Judge Kenneth Fishman ruled that the dealers association lacks the grounds to sue the American EV manufacturer.

SEE ALSO: Tesla Wins License to Sell Cars in Boston Suburb

The issue raised by the dealers association is a state franchise law which states that a factory cannot directly own a dealership. Tesla’s response was that no business is done at the dealership, and all cars are purchased online. The dealerships merely exist to showcase the vehicles.

The dealers association say that they will not stop trying to shut the dealer down, because of the precedent that will set.

 [Source: Automotive News]

By Stephen Elmer

Developer sues Tesla over aborted New Mexico Model S plant

Tesla Model S - front three-quarter view



New Mexico may be The Land of Enchantment, but at least one developer from the state is less than charmed with Tesla Motors.



The electric-vehicle maker has been sued by Rio Real Estate Investment Opportunities for what the developer says was an agreed-upon deal for Tesla to produce its Model S battery-electric sedan in New Mexico, according to website Gigaom.



Tesla allegedly reached an agreement in early 2007 to have Rio Real Estate build a 150,000-square-foot factory and lease it out to the automaker for $1.35 million a year for 10 years. Instead, Tesla decided to start Model S production in California after reaching an agreement with Toyota in 2010 to make the cars at the old NUMMI Toyota-General Motors joint venture plant in the San Francisco Bay Area. We asked Tesla for comment on the matter, but spokeswoman Shanna Hendriks told AutoblogGreen that the company does not comment on pending litigation.



Tesla, which in June started deliveries of the Model S, said last week that its second-quarter loss widened by 84 percent to $106.5 million because expenses jumped and revenue fell as the company geared up for the car’s debut.

Related GalleryFirst Ride: 2012 Tesla Model S Beta

By Autoblog Staff

Tesla Unable to Sell Directly to Consumers in Texas

tesla-dealership

Tesla CEO Elon Musk has suffered his second straight setback in wanting to sell his electric cars directly to consumers.

In what he believed could have been the brand’s second largest sales market, the state of Texas has ruled against the American automaker in allowing it to sell directly in Texas. Bills that could have created an exemption for Tesla to allow factory-owned dealerships failed to make it to the floor of the Texas House or Senate for voting.

SEE ALSO: Tesla Sued by Auto Dealers Association

The Legislature’s regular session ended on May 27, and it won’t meet again in a generation session until 2015. So for now, Tesla’s retail locations in Houston and Austin are prohibited from sales activities. Late April, Tesla lost the battle in Virginia and is currently fighting legislation in North Carolina so that it can use the Internet to sell its vehicles.

[Source: Automotive News]

Discuss this story at Tesla-Buzz.com

By Jason Siu