agent Entrepreneur logo
MenuMENU
SearchSEARCH

Mass. High Court Rules For Tesla Over Auto Dealers

BOSTON — The state’s highest court on Monday upheld the right of Tesla Motors to sell directly to Massachusetts consumers, rather than through a dealership network, reported 90.9wbur. Dealers including Herb Connolly Chevrolet sued to stop Tesla from selling its high-end electric cars from its store in the Natick Mall, saying Tesla was essentially operating ... Read More »

September 17, 2014
2 min to read


BOSTON — The state’s highest court on Monday upheld the right of Tesla Motors to sell directly to Massachusetts consumers, rather than through a dealership network, reported 90.9wbur.

Dealers including Herb Connolly Chevrolet sued to stop Tesla from selling its high-end electric cars from its store in the Natick Mall, saying Tesla was essentially operating its own dealership. The Massachusetts State Automobile Dealers Association argued that a 2002 change in state law barred manufacturers from owning dealerships.

Ad Loading...

But the Supreme Judicial Court disagreed, ruling that the 2002 amendment “was intended and understood only to prohibit manufacturer-owned dealerships when, unlike Tesla, the manufacturer already had an affiliated dealer or dealers in Massachusetts.”

The SJC ruling upheld a lower court ruling that dealers had no standing to challenge Tesla.

Tesla Motors said it’s gratified by the ruling. “The mission of this company from the very beginning has been to evangelize for electric vehicles,” said the company’s deputy general counsel Todd Maron. “Massachusetts is a key market for that; it’s very progressive. So we are looking forward to getting on with business now that the legal situation has been clarified.”

Robert O’Koniewski, executive vice president of the state auto dealers association, accuses Tesla of monopolizing sales, and said his organization is disappointed with the ruling.

“We as an association are going to have to look at what the decision says and try to assess whether we need to go back to the Legislature and ask them to fix that,” O’Koniewski said.

Ad Loading...

Wilmington auto dealer Scott Dube told WBUR last year that he feared allowing direct-to-consumer sales could disrupt the entire franchise system of dealership networks.

Tesla, a Silicon Valley carmaker, has just two models that cost several times the average price of a car.

More Industry

The outside of a blue Gregg Young Chevrolet dealership.
Industry•by Lauren Lawrence•October 22, 2026

Nebraska Rooftop Changes Hands

The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.

Read More →
Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Ad Loading...
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Ad Loading...
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Ad Loading...
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...