Saying that Tesla Motors Inc (NASDAQ:TSLA) is having difficulties expanding its operations is an understatement. Since the company does not rely on the traditional sales model, dealers in states across the country are doing their best to keep the electric vehicle maker on the outside looking in.
Before we take a closer look at what Tesla is up against in Massachusetts, let’s look back at this story: Tesla Motors Inc (TSLA) Comes Up Short In Lone Star State
The title of this piece pretty much says it all. Despite a good fight to bring its cars to the state of Texas, Tesla came up short. Here is an excerpt from the piece:
“Tesla-backed bills that would have created an exemption to current state law restricting factory-owned dealerships failed to make it to the floor of the Texas House or Senate for voting. The Legislature's regular session ended Monday, May 27, and it won't meet again in a general session until 2015.”
Of course, this doesn’t mean Tesla Motors Inc (NASDAQ:TSLA) is going to shy away from its goal of expanding into other states. Now, the company is focused on Massachusetts.
While Tesla is sure to face many of the same issues in this state, the company continues to forge ahead in hopes of making up ground.
A recent NECN.com story provided an in-depth at the struggles Tesla Motors Inc (NASDAQ:TSLA) has faced in this state already:
“Just to get a showroom open last year at the Natick Mall required winning a lawsuit brought by the Massachusetts Auto Dealers Association, which argued Tesla was violating longstanding state dealership franchise laws. And because of local zoning, you can’t actually buy a Tesla there; you have to go to another office five minutes away in Natick. Last month, the Natick Planning Board voted 3-2 to allow a zoning variance to enable Tesla to process sales at the mall location, but now that vote is under review by town lawyers who are trying to decide whether the vote required a 4-1 "supermajority" vote.”
Tesla Motors Inc (NASDAQ:TSLA) feels that Massachusetts is a perfect market for expansion, and has noted that New Hampshire has removed many of the roadblocks that face the company in other states.
Diarmuid O’Connell, Tesla vice president of corporate and business and development, makes a good point: