One of the advantages of being the new kid on the block in business is that you often get to approach things in a different way than the more established players in the market, even down to how your products are sold. That’s the approach Tesla took in selling its vehicles, adopting a manufacturer-direct, company-owned store model. But that approach did not sit well with established, franchise model dealers, claiming the company’s model skirts the car dealer franchise laws in some states. The Massachusetts State Automobile Dealers Association in particular took issue with Tesla, and took the automaker to court after it opened a showroom in the Natick Mall.
But Massachusetts Judge Kenneth J. Fishman dismissed the suit, stating “The court is unconvinced that the 2002 amendment to Chapter 93B expanded the purpose of the statute to protect the motor vehicle franchise system,” Bloomberg reports.
Tesla CEO Elon Musk addressed the legal victory by Tesla in a statement: “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.”
But the dealer association hasn’t given up its fight against Tesla entirely, saying it is considering an appeal. “It’s just another bump in the road we have to address,” Robert O’Koniewski, executive vice president of the state dealer association said.