Tesla Inc (NASDAQ:TSLA) can now operate full stores in the state of Arizona, after being granted a dealer license there.
The Rose Law Group uncovered the recent development:
“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.”
TSLA currently operates two service centers and a gallery in the Phoenix area. Those can now both become full stores.
Tesla has similarly been able to skirt dealership regulations in Utah, successfully arguing that archaic rules don’t apply to them, since they never had independent dealerships to begin with. Some states have laws that prevent direct sales of cars to protect family-owned dealerships.
The company is waging battles in Texas, Connecticut, and Michigan to try and allow vehicle sales there, as the few remaining states that don’t currently allow Tesla to sell direct there dwindle down. Of course, buyers can still order cars online and have them delivered from California, regardless of their local regulations.
Tesla Inc shares closed at $371.40 on Friday, down $3.94 (-1.05%). Year-to-date, TSLA has gained 73.80%, versus a 9.02% rise in the benchmark S&P 500 index during the same period.