Think Tanks: Massachusetts cuts out the middlemen

Published September 29, 2014 9:00am ET



Mytheos Holt for the R Street Institute: High-end electric car consumers, rejoice. If you want to buy one of the famous Tesla cars and you live in Massachusetts, you can now do exactly that. Massachusetts’ Supreme Judicial Court decided to lift the ban on Tesla sales within the state, following a lawsuit brought by some of the state’s auto dealers. As you may have guessed, the dealers lost.

At first glance, it’s easy to see where the dealers got the idea for their lawsuit. Massachusetts law prohibits car manufacturers from also operating dealerships in the state. Given that Tesla never bothered with the whole “dealership” business model, it would seem that Tesla’s “direct sales” would be illegal.

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