Massachusetts Judge Sides With Tesla in Initial Ruling

BOSTON — The Los Angeles Times reports that a Massachusetts judge sided with Tesla Motors in its initial ruling on a lawsuit initiated by dealers across that state. Dealers in Massachusetts and New York are suing Tesla Motors for operating showrooms under its franchise.

According to the Times, Massachusetts dealers were denied a temporary restraining order and injunction in the lawsuit in the Norfolk County Superior Court.

In an Oct. 22 blog post, Tesla Chairman and CEO Elon Musk defended his stores and gallery locations, explaining that they create an advantage for dealers by educating the customer and then direct the shopper to go online. He also referred to the lawsuits as “starkly contrary to the spirit and the letter of the law.”

Charles Cyrill, the National Automobile Dealers Association's spokesperson, said the association is still reviewing the decision.

In a statement e-mailed on Nov. 12, NADA Chairman Bill Underriner said, “NADA has serious concerns about Tesla's intentions. We are seeking a meeting with Tesla executives, including its CEO Elon Musk, to discuss these concerns … NADA supports the franchised new-car dealer system, which has done a remarkable job for more than 100 years serving the needs of both manufacturers and consumers. Tesla may not yet recognize the value of the independent, franchised dealer system, but as its sale increase, NADA is confident it will re-examine its business model.”