Judge Dismisses Massachusetts Dealer Suit Against Tesla
Tesla and Space-X founder Elon Musk has a well-deserved reputation for being somewhat of an iconoclast, doing things his own way, and not being constrained by convention or tradition. That approach to business also extends to his model of selling cars, taking a factory-owned store approach with Tesla, a relative rarity in the U.S. market, and in some states may be illegal, at least according to car dealer trade associations. The Massachusetts State Automobile Dealers Association was so incensed at the building of a Tesla showroom in the Natick Mall, that it filed a suit against the electric car maker.
But Massachusetts Judge Kenneth J. Fishman dismissed the suit, stating “The court is unconvinced that the 2002 amendment to Chapter 93B expanded the purpose of the statute to protect the motor vehicle franchise system,” according to a Bloomberg report.
Musk addressed the legal victory by Tesla in a statement: “We are delighted by the outright dismissal of this case, and the validation that we are operating our business in compliance with the laws and expectations of the Commonwealth of Massachusetts.”
But the dealer association hasn’t given up its fight entirely, saying it is considering an appeal. “It’s just another bump in the road we have to address,” Robert O’Koniewski, executive vice president of the state dealer association said.