Tesla Wins Major Direct Sales Court Battle Against Delaware

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Jay Traugott
2023-05-20 17:00:59

Last September, the carmaker said it planned to fight a sales ban in Louisiana and, before that, succeed in New Mexico by taking advantage of a legal loophole.

Tesla’s victory in Delaware is also excellent news for Lucid and Rivian, two other EV automakers that utilize direct sales though neither currently has a physical sales location in the state just yet. The direct sales model directly threatens the long-running status quo, hence the dealership lobby’s decision to fight it so hard. Neither side is willing to step down.

Legacy automakers, such as Ford, closely monitor how consumers respond to direct sales. The Blue Oval announced it’s applying a no-haggle, online direct sales platform to European customers. Dealers will still be required as a source for test drives, deliveries, and service visits.

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