Tesla Inc. (NASDAQ:TSLA) has been in trouble recently over its direct sales business model which is not allowed in a lot of states. The automaker has been suffering from weak sales in such states as people have to buy their cars from different states and also don’t get the option to have the luxury of using the service centers of the company for the maintenance of their vehicles.
However, the carmaker had a small victory against people opposing the direct sales model in Arizona. According to Electrek, Tesla managed to secure a dealer license which the company had got after DMW issued it last year. The car company has been fighting out the direct sales bill in Arizona, and multiple attempts to make changes to the bill have been unsuccessful for Tesla which made it difficult for its Arizona customers.
According to the report, “Thanks to a dealer license granted last year by the Arizona Department of Transportation, Tesla is now availing itself of opportunities that had long been denied it. ADOT granted the license Tesla sought after an administrative law judge determined that a law that was widely believed to prohibit it from selling directly to customers didn’t apply to the company.”
The automaker currently is operating two service center and its gallery near Phoenix which it can now serve as full stores after getting the license. Tesla had taken a similar route in Utah as well where the company failed to change the laws regarding the direct sales bill. Hence it went to court to prove that such laws should not apply to it as it does not have any dealership franchise in the state.
This may be a small victory for Tesla, but it will be a big relief for them considering that the automaker had recently suffered defeats in Connecticut and Tesla over direct sales. Tesla is fighting out a similar lawsuit in Michigan as well.