agent Entrepreneur logo
MenuMENU
SearchSEARCH

Tesla to Expand in Pennsylvania

July 8, 2014
2 min to read


Tesla Motors Inc., which has battled U.S. auto dealer groups over its direct sales of electric cars through company-owned stores, has received approval from lawmakers in Pennsylvania to expand retail operations there, reported Newsday.


The Pennsylvania House Wednesday passed legislation, approved by the Senate last week, that lets the Palo Alto, California-based carmaker increase the number of stores in Pennsylvania and add more service centers, the company said in an emailed statement.

Ad Loading...


The legislation, which allows as many as five stores in the state, passed 197-2 in the House and still must be signed by Gov. Tom Corbett, a Republican, to become law.


“We hope the process in Pennsylvania serves as an example for how productive cooperation can lead to a win for all parties involved, dealers and legislators included,” Diarmuid O’Connell, Tesla’s vice president for business development, said in the statement.


Unlike previous fights, the Pennsylvania deal arose from cooperation with an industry group, the Pennsylvania Automotive Association, he said.


“It seems state legislatures are feeling pressure to change state laws,” said Ben Kallo, an equity analyst with Robert W. Baird & Co. in San Francisco who rates Tesla at outperform. “Pressure is coming from their constituents of all political parties rather than special interest groups.”


The legislation is the latest win for the automaker led by Elon Musk, who has avoided selling his $71,000 Model S sedans through traditional car dealerships. Last month, the New Jersey Assembly approved a bill that creates a loophole for direct sales of zero-emission autos, and New York Gov. Andrew Cuomo signed a similar measure into law. The company this year also won an exemption to an Ohio statute banning direct auto sales and avoided a similar ban in Missouri.

Ad Loading...


The company’s ability to avoid being shut out of U.S. states with strict franchise dealer rules shows Musk is “disrupting” the conventional auto sales model, said Karl Brauer, a senior analyst with Kelley Blue Book.


“Tesla is seen as a kind of new, hip, up-and-coming company in the auto business,” Brauer said in a phone interview. “Some of the initial reactions against them by dealers in other states may have backfired a bit on the dealers — making them seem a little too tied to the past.”


Tesla now operates a Pennsylvania store in King of Prussia and service centers in Devon and Norristown, and plans to open a store in Devon soon, according to its website.


While Tesla would prefer no cap on the number of stores it can open in Pennsylvania, “I regard this as the glass is half full,” O’Connell said in a phone interview.

More Industry

Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Ad Loading...
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Ingredient card, policies and procedures, fixed operations, variable operations, data security, audit
Industryby Jim GantherMay 19, 2026

Recipe for Compliance

The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Ad Loading...
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →
Ad Loading...