Electric Vehicle Direct to Consumer Sales
As EV popularity grows and revolutionizes the auto industry, we have seen the introduction of new companies that are focused on just EVs and existing manufacturers introducing more EVs to their existing lineup. One practice that seems to be in question is how these EVs are sold to the consumer. Many states have current franchise laws that require vehicles to be sold by an independent dealership or limit the number of non-franchised dealerships that a manufacturer can have in the state.
For example, Georgia limits non-franchised dealerships to five in the state. Some EV manufacturers are starting to challenge these laws and challenge how vehicles are being sold to consumers. In Colorado, legislation is making its way through the House to allow automakers with no existing dealer franchise network to sell EV’s direct to consumers. If the bill makes its way through the house, it will head to the governor’s desk for signature.
EV’s are changing the landscape of the vehicle industry in more ways than one. Could we start to see more and more states change how vehicles reach the consumer?
Where Can You Buy a Tesla Directly?
States With Total Direct Sales Bans
Alabama (also bans service centers)
Connecticut
Nebraska
New Mexico (also bans service centers)
Oklahoma
South Carolina (also bans service centers)
Texas
West Virginia
Wisconsin
States With Limited Sales
Colorado (1 store limit)
Georgia (5 store limit)
Maryland (4 store limit)
Michigan (Lawsuit Settlement)
New Jersey (4 store limit)
New York (5 store limit)
North Carolina (6 store limit)
Ohio (3 store limit)
Pennsylvania (5 store limit)
Virginia (2 store limit)
States for Which Tesla Gained the Right to Mostly Unrestricted Direct Sales
Arizona (2017 court ruling)
Indiana (2017 law change)
Massachusetts (2014 court ruling)
Michigan (2020 legal settlement)
Minnesota (2013 law interpretation)
Missouri (2017 court ruling)
New Hampshire (2013 law change)
Rhode Island (2017)
Utah (2018 law change)
Washington (2014 law)
Wyoming (2017 law change)
Sources:
Auto dealers, electric-vehicle startups reach compromise to allow Colorado direct-to-consumer sales
About the Author: Parker Penn
