Washington introduces bill to close Tesla sales centers across the state

Washington Senate has introduced a new bill 5377, that could stop Tesla sales centers and direct sales across the state due to its strict implications.

The bill is labeled as an “act relating to protecting consumer choice by creating a fairer marketplace for auto sales”.

5377 prohibits manufacturers, distributors, and related entities from engaging in discriminatory practices against new motor vehicle dealers such as offering different prices for the same vehicle or parts and imposing unreasonable conditions on dealerships.

A major change in this bill includes provisions that allow manufacturers to own and operate dealerships while removing previous restrictions on manufacturers who held a vehicle dealer license in 2014 from owning dealerships that sell their own makes.

Tesla has warned that this step will create problems for its customers and new EV buyers in the state. The company has numerous sales centers across Washington and the bill could mark a halt for all of them.

Tesla opposes Washington Senate bill 5377 which could force it to close its sales centers (Credit – Tesla)

This will impact in-state services and customers will have to travel to another state to complete their purchases. Furthermore, the bill will threaten Tesla’s warranty and other service activities, which currently remain in check within the state.

Unlike other car manufacturers, Tesla uses a direct sales model. It has created many sales centers and showrooms across the US and around the world to directly connect with customers.

With this sales chain, the company has sold millions of cars over the past years. Compared to dealerships, Tesla sales center employees engage with people and service staff.

Aside from in-person purchases, Tesla also has its online shop, where customers can configure a car and place an order.

“Tesla’s direct-to-consumer model allows us to provide customers with consistent and transparent pricing regardless of where someone lives. Washington should focus on increasing revenue and jobs in the state, not stifling competition and limiting consumer choice” said Tesla.

(source)