Virginia Allows Tesla To Establish Traditional Dealership

Virgil Hilts
by Virgil Hilts

One week after we mused that electric carmaker Tesla would never be able to defeat current state laws prohibiting factory direct automobile sales and thus must join the franchised dealer model, the company proved us wrong thanks to the Commonwealth of Virginia.


According to Automotive News, the Virginia Department of Motor Vehicles and, amazingly, the Virginia Automobile Dealer Association have come to an agreement to allow Tesla to open one dealership in the state. Tesla currently operates a order-taking outlet in a mall in Tysons Corner, a suburb of Washington, D.C., while their nearest service center is in Rockville, Maryland. Although details of the agreement are sealed, it is likely that Tesla will be allowed to build a full service store in the Tysons Corner area.

Tesla has been wrangling with the state for some time. Their request to open a dealership had previously been denied by the state’s DMV and the company was appealing the ruling in a county court. The next step is for the Virginia Motor Dealer Vehicle board to grant Tesla a business license.

Tesla had previously won approval to sell its vehicles in the state of New Hampshire but having a point near the nation’s capital is huge for the company’s exposure. Besides having near-perfect client demographics for the product, it affords CEO Elon Musk the opportunity to showcase his dealership to members of Congress, whom he is considering lobbying to pass a federal law allowing factory direct car sales to customers.

As this agreement has been in the works for some time, we cannot say if our editorial had any influence on the Virginia entities, but we cannot help but wonder if TTAC commenter and dealer apologist Ruggles, who posted a remarkable one hundred and seventy-four comments on our story last week, might have been in Richmond this week, wearing the lawmakers down until they caved.

Virgil Hilts
Virgil Hilts

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  • Ruggles Ruggles on Oct 11, 2013

    RE: "Author: doctor olds Comment: @Vulpine- "BUYERS are saying GM needs to shut down one of those brands..." Absurd!! GMC is strong and profitable, Sierra represents plus business at higher unit profit. The fact the GM production system builds Sierra as s trim level of a Silverado is one element of why this is a good business plan. Your notions about the cost elements are disconnected from business reality." Good points. Another small detail is that GMC is the brand handled by Buick dealers, who have lost Olds and Pontiac. In a market with Chevrolet, the GMC dealer provides a competitor that can work in the consumer's favor.

  • Ruggles Ruggles on Nov 30, 2013

    Has the irrational exuberance flamed out here?

  • Cprescott Fisker is another brand that Heir Yutz has killed.
  • Dwford Every country is allowed to have trade restrictions except the US.
  • 1995 SC Are there any mitigation systems that would have prevented this though? We had a ship hit a bridge in Jacksonville a few years back and it was basically dumb luck it didn't collapse. This looked like a direct hit.
  • Cprescott Oh, well.
  • 28-Cars-Later "The Chinese Ministry of Commerce claimed the Inflation Reduction Act is “discriminatory”"This what your mainstream social communism has wrought: a foreign power, major geopolitical rival and the #1 global industrial competitor cries "racism" when an act of Congress in any way presents a challenge - and the saddest part is there are Americans who will process this claim and agree if only in their own minds. To be clear, Wo xihuan Zhongguoren but the under 40yo PRC raised Mainlanders I've interacted with do believe they are a master race - but that's fine right?
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