Republican lawmakers in Missouri drafted legislation to prevent Tesla from establishing its direct sales model in the state. The legislation, now considered dead for the remainder of the legislative session, was backed by an auto dealers' group.
"House Majority Floor Leader John Diehl said Tuesday that legislation aiming to block Tesla Motors from setting up shop in Missouri will likely not be passed in the final days of session," reports Eli Yokley.
"Last week, the Missouri Senate quietly attached language that painted a target on Tesla’s direct sales model. The language, slipped into House Bill 1124, was adopted at the urging of the Missouri Auto Dealers Association, which claimed the electric car company may have been violating the state’s vehicle franchise law."
An earlier report by the Associated Press describes the Auto Dealers Association's concerns about Tesla's direct sales business model, which "circumvents" the state's traditional franchise model.
Yokley's coverage of the ongoing controversy includes the following statement from Doug Smith, president of the Missouri Auto Dealers Association: "“Auto dealers across the state have operated within Missouri’s vehicle franchise law for nearly thirty years. We believe that the law protects Missouri auto consumers and promotes market competition and should continue to be in place."
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