- The company wants to open two dealerships in North Dakota.
- Locals wanting to buy a Tesla currently have to head interstate.
- North Dakota’s attorney general is hitting back at Tesla’s moves.
Tesla is still fighting with states to operate its own dealerships throughout the US, rather than the long-standing franchise model, and North Dakota is the latest state in the company’s crosshairs.
America’s leading EV company is suing the state of North Dakota as it attempts to open dealerships in Bismarck and Fargo. Currently, North Dakota prohibits car manufacturers from owning car dealerships and requires vehicles to be sold through franchised dealerships.
Read: Trapped In His Tesla, He Said “I Can’t Get Out” Before It Was Too Late
In its latest lawsuit, Tesla claims it does not fall within the definition of a vehicle manufacturer under state law, which defines a vehicle manufacturer as a person who assembles or imports a motor vehicle and sells it to dealers for resale. Currently, Tesla is unable to sell its vehicles in the state, forcing prospective buyers to head to neighboring states.
As reported by the North Dakota Monitor, if the court does declare Tesla meets the local definition of a manufacturer, then Tesla will ask if an exception can be made for it.
“Tesla’s interpretation would allow any manufacturer to avoid the statute simply by choosing not to franchise its dealers,” Assistant Attorney General Michael Pitcher said. “That would defeat the whole regulatory structure that the Legislature has adopted.”
“Tesla can operate in North Dakota the same way that every other manufacturer does. They can appoint dealers, they can enter into franchise agreements, and they can sell through that,” Pitcher added. “So the statute is not taking away Tesla’s ability to do business. It’s just regulating the distribution model of vehicles.”
North Dakota lags behind most other states in its adoption of electric vehicles. EVs account for less than 2 percent of new car sales and there are just 277 public charging ports across the state, including a mere five Tesla Supercharger locations.
