Tesla and New York Car Dealers Battle to Determine Rights for Direct Electric Vehicle Sales (TSLA)

New York State auto dealers have reportedly funded new bills submitted to the New York legislature that would effectively ban Tesla TSLA from selling its electric cars without using dealerships as middlemen.

New York car dealers have already tried to get rid of Tesla’s New York stores and service centers, but the Supreme Court ruled in favor of Tesla in April. Tesla has issued an official statement pointing out that should the bill pass, it would effectively put the company out of business in New York, resulting in all of Tesla’s New York employees losing their jobs and New York consumers not being able to purchase the leading electric vehicle currently available.

Furthermore, Tesla stated that due to New York’s initiatives and support for reducing carbon vehicle emissions and the green energy movement, it would be hypocritical for the state to ban Tesla from selling its vehicles directly.

Since the company’s inception, Tesla’s mission statement has been to make electric and clean fuel vehicles widely available to consumers, and selling its vehicles through car dealerships would not be in line with Tesla’s goals.

Tesla shares are currently priced at $102.35, up .85 percent from its previous close at $101.49.

Bottom Line: Tesla is currently in a battle against New York car dealerships over a bill that would ban Tesla from selling its vehicles to New York customers directly. The company has stated that the bill would put Tesla out of business in New York and set back the electric vehicle industry. The outlook is positive for Tesla, however, as the Supreme Court ruled in favor of Tesla in April after New York car dealerships pushed to oust Tesla’s stores from the state.