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