Tesla About to Win in Ohio

Published: Mar 27, 2014

Crixxor / Foter / CC BY-SA

Tesla wanting to sell vehicles directly from its stores has seen a heated debated after the electric automaker clashed with dealers in a few states. For the time being, it seems Tesla might be winning in Ohio.

An Ohio Senate committe approved a new bill that prohibits automakers from getting a dealer license, but includes an exception for Tesla Motors, allowing it a maximum of three stores in the state. Lawmakers believe this is a compromise “between the company and the Ohio Automobile Dealers Association, which had sought to block Tesla from selling without a middleman”.

While Tesla believes this is the right business model, because it can educate customers about the importance of electric vehicles through its stores, auto dealers don’t agree. They believe selling cars directly to the public is in violation of franchise laws and fear such a practice would encourage other automakers to follow Tesla’s model.

Read the full article at Automotive News.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.