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11/02/2024 09:32:53 am

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Missouri Car Dealers Sue State Department For Allowing Direct Tesla Sales

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(Photo : Reuters) Elon Musk claims a new announcement will remove range anxiety on the Model S.

The Missouri Automotive Dealership Association is not happy with Tesla Motors selling cars directly to customers, and is suing the state for allowing this to happen.

Dealerships all across the U.S. have complained that not going through a middleman is illegal and ruins the business practice millions of customers and dealerships have used for generations, alongside giving one entity more control over car sales.

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The lawsuit, which was filed this week, claims the state "created a non-level playing field where one entity - Tesla - is subject to preferential treatment and all bona fide dealers are discriminated against."

Tesla disagrees with the filing, claiming the dealership lawsuit is aimed to "create a distribution monopoly that will decrease competition, hurt consumer choice, and limit economic investment in Missouri," according to Diarmuid O'Connell, Tesla's vice president of corporate and business development.

Missouri has generally been on the side of Tesla Motors, rejecting a case last year by the same association. Tesla has also fought the same battles in New Jersey, Ohio, and still fights for approval in Michigan and Texas.

Tesla's CEO Elon Musk claims that the experience of buying an electric car is something unique and special, warranting its own show-floor full of car dealers that understand the intricacies of the electric car.

In other countries in Europe and Asia, Tesla has not had anywhere near as many problems getting its show-floors made and active. Connecticut recently pushed for a new Tesla overrule, allowing them to sell directly, following state-senator Art Linares' own issues with test driving the Model S.

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