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Tuesday, 22 April 2014 20:50

Washington State Approves Tesla Direct Sales Model

While New Jersey is kicking Tesla out of the state because of lobbying pressures from auto dealers, the state of Washington is going in the opposite direction: Governor Jay Inslee has signed a bill that explicitly allows Tesla to sell its electronic vehicles through its own stores in Washington. This not only removes uncertainty for Tesla in Washington, but it will allow it to expand beyond its two showrooms in Seattle and Bellevue.

In a statement, Tesla said that the Washington legislation should serve as a “model solution” for other states. Musk has said on the company's blog that he doesn't want to break up the dealer franchise model, he's just not interested in participating.

“The bill clarifies that a manufacturer that held a dealership license as of January 1, 2014, would be exempt from the prohibition on manufacturer ownership,” said Bryan Imai, senior general counsel at the Washington State Auto Dealer Association. Tesla held a dealership license in Washington as of January 1, 2014, he said.

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