Auto Dealers Fearing Tesla —

Dealers attack Tesla, seek to remove electric car maker from Georgia

Flap with Georgia car dealers is the latest tussle over Tesla shunning franchises.

Autodealers in Georgia are trying to kick Tesla out of the state and prevent it from selling its Model S sport sedan and upcoming Model X SUV.

The move by the Georgia Automobile Dealers Association comes amid a flurry of fighting over Tesla selling directly to the public without the middleman, or franchise dealership.

The association is seeking to revoke "Tesla's existing dealer license" and to block "any attempt by Tesla to renew or reapply for a dealer or manufacturer license."

The association made that claim last week to the Georgia Department of Revenue, which limits Tesla to selling 150 cars annually in the Peach State under Tesla's direct-to-the-public sales policy. The group says Tesla has sold 173 vehicles in Georgia.

"it's just very simple. We want them to comply with the law the way others are," association president Bill Morie told Automobile News.

Tesla said the association, which represents 500 dealers, has got it all wrong.

“Tesla has been and remains in full compliance with all Georgia laws in the opening and operation of its retail operations in that state,” Tesla spokesman Simon Sproule told Bloomberg News.

The petition, he said, “is nothing more than a thinly veiled attempt to stifle new innovation and eliminate consumer choice by trying to establish a monopoly that restricts the way consumers can buy new vehicles.”

Tesla said it has not breached the 150-car annual limit because the limit applies to accounting during the calendar year. The association's petition shows 173 sedans being sold from October to June, he said.

Tesla operates a store in Marietta, just outside Atlanta.

Tesla has been battling with car dealers over its sales tactics in several states, including Missouri, New Jersey, New York, Ohio, and Pennsylvania.

Channel Ars Technica