With support from a surprising industry, state legislators on Monday resurrected a stalled bill that would let Tesla Motors continue to sell its high-end electric cars directly to Georgians.
A bill once seen as a long-shot now is backed by the powerful Georgia Automobile Dealers Association, which had been trying to halt Tesla and its no-dealer business model in the state.
GADA president Bill Morie didn’t disclose during a committee hearing what led to the flip. And he didn’t immediately return a reporter’s call for comment. But one change sought by the dealers was to alter the definition of a “new motor vehicle,” raising questions about whether it might eliminate a loophole in existing law that could have paved the way for car makers beyond Tesla to sell new vehicles without dealer involvement.
Georgia law generally prevents vehicle manufacturers from selling direct to consumers, except for up to 150 custom-made vehicles a year. The law was set up to prevent car makers from competing against their own dealers.
But California-based Tesla never had franchised dealers. It sells direct to consumers in Georgia online and through its three company-owned stores in metro Atlanta. In doing so, it skips the independent dealer model historically used by the biggest auto brands.
Tesla’s Model S was recently rated the number one new car by Consumer Reports.
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