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Tesla Motors (TSLA) Wins Lawsuit in Massachusetts Against Auto Dealers

January 4, 2013 2:59 PM EST Send to a Friend
Tesla Motors (Nasdaq: TSLA) won dismissal of a lawsuit brought by the Massachusetts State Automobile Dealers Association claiming Tesla was in violation of Massachusetts law by conducting sales within the Commonwealth of Massachusetts. A Superior Court judge dismissed the case based upon the auto dealers' lack of standing and failure to state a claim.

Several months ago the judge denied a temporary restraining order and preliminary injunction requested by the Massachusetts State Automobile Dealers Association and in December Tesla Motors was granted a full Class 1 Dealer License by the Town of Natick's Board of Selectmen.

"We are delighted by the outright dismissal of this case and the validation that we are operating our business in compliance with the laws and expectations of the Commonwealth of Massachusetts," said Elon Musk, Tesla co-founder and CEO. "We are confident that other states will also come to this same conclusion and look forward to following through on our commitment to introduce consumers to electric vehicle technology in an open, friendly, no-pressure environment."

The Massachusetts State Automobile Dealers Association has also filed a separate lawsuit against the individual Selectmen that make up the Natick Board.

"We think this subsequent lawsuit is a very unfortunate action taken by the Massachusetts State Automobile Dealers Association against a group of individual citizens who thoroughly reviewed our request for a Class 1 Dealer License and thoughtfully made a decision that was both legal and in the best interests of the citizens of Natick. We look forward to supporting the Board of Selectmen in this case," said Musk.

Tesla is pursuing a company owned store and service center model to accelerate the adoption of electric vehicle technology and to interact with consumers in a friendly, open and no-pressure environment. Tesla's retail concept demonstrates the benefits of driving electric through informative videos, interactive displays, and a Design Studio where customers can configure their own Tesla Model S on a large touchscreen.




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