Business & Tech

Tesla Motors Wins Right to Sell From Maryland Store

Before Gov. Larry Hogan signed a bill, Tesla shoppers could only look, not buy, at the company's Bethesda store.

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The Maryland car market is now open to Tesla Motors, the electric car manufacturer that has had its entry to the auto market blocked in several states through legislation.

Maryland Gov. Larry Hogan signed a bill earlier this month authorizing a manufacturer or distributor to be licensed as a vehicle dealer, reports Forbes. Sales are permitted if the “manufacturer or distributor deals only in electric or nonfossil–fuel burning vehicles,” which describes Tesla’s lineup.

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While the automaker has a store in Bethesda where eco-friendly shoppers can check out offerings, and even test drive a car, they could not be sold from the Montomery County location. Instead, buyers had to then order their Tesla online, or visit the downtown Washington, D.C., store to make their purchase, The Baltimore Sun reports.

Tesla will be limited to four stores in Maryland, Forbes says.

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Laws in Arizona, Connecticut, Michigan, New Jersey and Texas continue to bar sales of new cars except by licensed dealers, which has locked Tesla out of those states, the Sun reports.

Tesla has fought the legislation in courts, winning the right to sell in Massachusetts, New York and Ohio.

Michigan should end a ban prohibiting Tesla Motors Inc. from selling its electric cars directly to customers, the Federal Trade Commission said May 11.

Three senior FTC members said in a 10-page letter that Michigan consumers would “fully benefit” if the ban prohibiting Tesla and other automakers from selling directly to customers were lifted, The Detroit News reports.

The Michigan Legislature passed and Gov. Rick Snyder signed a tough law last year that banned California-based Tesla and other automakers from even talking with potential customers in Michigan about its cars. The law, backed by the Michigan Auto Dealers Association, required Michiganders who wanted to buy the car to purchase them directly through a network of franchise dealerships.

Barring direct sales to consumers is an “anomaly” unique to the auto industry, the FTC said in its letter.

Patch Editor Beth Dalbey contributed to this story.

»(Photo via Tesla Motors)

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