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W. Virginia Bans Direct Tesla Sales, With Urging of Car-Dealer Senate President

Ars Technica reports that another state has buckled to the auto dealership lobby, though with an interesting twist: West Virginia became at least the fifth state to ban the direct-sales approach practiced by Tesla Motors following Friday's signature by Gov. Earl Ray Tomblin. ... The bill was championed by West Virginia's Senate president, who is an auto dealer in his home state and Kentucky. ... The legislation says a vehicle maker may not “act in the capacity of a new motor vehicle dealer” or “operate a dealership, including, but not limited to, displaying a motor vehicle intended to facilitate the sale of new motor vehicles other than through franchised dealers, unless the display is part of an automobile trade show that more than two automobile manufacturers participate in.” ... The Palo Alto, California-based electric-vehicle company operates so-called "galleries" in Texas, Arizona, and Maryland because the company's sales practices are barred there, too. Customers can see Tesla cars in these galleries, but they may not order vehicles, discuss prices or take test drives."

5 of 197 comments (clear)

  1. Jury Nullification? by Teppy · · Score: 3, Interesting

    Clearly "what the people want" isn't working here. So why don't they simply sell the cars direct there anyway and disregard the law? Although I could not find a poll for Virginia, a Texas poll showed 85% of people in favor of allowing direct-to-consumer sales of cars. It would seem near-impossible to get a unanimous verdict to convict, as is required in Virginia.

  2. Re:Customers... may not... discuss prices? by fuzzyfuzzyfungus · · Score: 4, Interesting

    If Congress were to pass some 'Free Sale of Vehicles and American Free Enterprise Act', which explicitly overrode laws like this, it would take about 10 seconds for the supreme court to decide that a law governing business within West Virginia is subordinate to federal authority because intrastate commerce has an affect on interstate commerce (that's basically Gonzales v. Raich, so they could cut and paste); but congress hasn't done so.

    The Interstate Commerce Clause doesn't require the feds to regulate any and all matters of interstate commerce, it just gives them the authority to, if they so choose. Without any contradictory federal legislation there is no conflict, and no case; but if there were I'd be shocked to see a commerce clause argument fail.

  3. No test drives? Open a car rental agency! by Anonymous Coward · · Score: 2, Interesting

    That way people can at least drive the car.

    There are specialized car rental agencies that deal with Ferraris and other high-end cars.

  4. i can't belive it. by Virtucon · · Score: 3, Interesting

    In a state where coal is king, you ban the direct sale of electric cars.

    --
    Harrison's Postulate - "For every action there is an equal and opposite criticism"
  5. Journalism. :( by Orgasmatron · · Score: 4, Interesting

    What does it mean when a politician does something bad (by the standards of the reporter) and no party is mentioned?

    That right! Earl Tomblin (D).

    --
    See that "Preview" button?