Tesla has been rejected to receive a license renewal for selling new vehicles in Missouri, the United States. In St-Louis and Kansas City the Californian company has been selling its vehicles online or through special stores, but this will be no longer available since the last day of last year – at least, for some time.
Tesla lost a court battle back in August this year when Cole County Circuit Court Judge Daniel Green ruled that the manufacturer is not a franchise and its motor vehicle dealer licenses should not be renewed by the Missouri Department of Revenue. After it received a license to sell cars in Missouri for 2016, the Missouri Auto Dealers Association (MADA) sued the revenue department, claiming the electric vehicle company violates the state law.
While MADA will definitely be happy with the decision since its members will get to keep their monopoly, as Electrek reports, Tesla plans to appeal it “in order to prevent an immediate and unnecessary loss of jobs, tax revenue, consumer convenience, and consumer choice for Missourians,” the company announced. “Tesla has been selling cars in Missouri for almost four years and employs numerous people at its Missouri sales locations. We do not believe that we should have to close up those sales operations while the Court of Appeals considers whether we may continue selling in the state.”
Tesla’s business philosophy is based on direct customer sells without the need of third-party dealerships. The automaker believes dealers are generally unable to promote their electric models due to lack of desire and knowledge. Also, usually dealerships make most of their income on servicing and maintaining, and Tesla doesn’t want to make profit on service.