The Circuit Court of Cole County on the 7th of September, ruled in favor of the Missouri Automobile Dealers Association (MADA) in a suit filed in January, 2015.
The suit alleges that the legal framework of states franchise laws was arbitrary, capricious and unreasonable. The allegations have come in after Tesla, was given a dealership license. This essentially implies that the electric car manufacturer can sell directly to the customers bypassing the dealership network.
Tesla and Department of Revenue argued that Tesla fulfilled all the requirements for such a license and thus eligible for the same. Also it was contended that, apparently that Missouri state doesn’t require the existence of a franchise agreement with another entity.
This judgment therefore, allows Tesla to showcase its cars in St. Louise, but the customers would have to buy them online.
Presently, Tesla has 260 locations and plans to increase it to 441 worldwide by the end of 2017. This judgment might act as a small hiccup to the electric car manufacture giant.