Tesla Motors easily won the Georgia House of Representatives’ approval Friday night for a bill letting it continue to avoid independent dealers and sell an unlimited number of its new electric vehicles directly to state consumers.
The measure, which passed 170-3, now goes before the state Senate.
If the legislation wins passage there and is signed by the governor, California-based Tesla would be the first and only carmaker in recent Georgia history to be allowed to sell freely without going through independent dealers. But the company would be capped at five Georgia locations.
Tesla’s unusual dealer-free business model has sparked legislative fights across the nation, pitting the company against franchise car dealers protected by state laws giving them exclusive rights to sell new cars. Tesla only sells its electric vehicles online or through its own stores, three of which are in metro Atlanta.
The Georgia Automobile Dealers Association fought similar legislation last year that would have let Tesla sell more cars locally. GADA also has sued to force the state to halt Tesla sales, which it contends violate state law.
But convinced the fight could linger for years, GADA leaders agreed to support the Tesla bill, House Bill 393, sponsored by State Rep. Chuck Martin, R-Alpharetta, once it was changed to eliminate a potential loophole in existing law that might have let other carmakers also sell directly to consumers.
Said GADA President Bill Morie, with a smile: “Tesla is the first. Hopefully, it will be the last.”
GADA said the state’s dealer model gives added protections for consumers, such as helping to deal with manufacturer recalls.
Tesla said it sold nearly 500 new vehicles in Georgia last year, some through an exception in state law that allows a manufacturer to directly sell to consumers up to 150 custom-made vehicle a year. Tesla said most of its Georgia sales were made online, which it says isn’t barred by state law.
The company’s Model S was recently rated the No. 1 new car by Consumer Reports. Its base-model vehicle is priced at about $70,000, but souped-up versions can go for more than $120,000.
