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Tesla obtains Kentucky direct sales license, traditional dealers face challenges

2024-08-11

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IT Home reported on August 11 that Tesla finally won a major victory after years of negotiations with the state of Kentucky. The state government recently officially granted Tesla a direct sales license.This means the electric vehicle giant will be able to sell vehicles directly to consumers in Kentucky without going through traditional dealer channels.


Image source: Pexels

Previously, Kentucky regulations required that car sales must be conducted through a dealer system, and Tesla's direct sales model has been restricted. Although Tesla is able to sell vehicles in the state,However, leasing business and some vehicle after-sales services have been banned.

Tesla has obtained an official sales license from the state, according to a list of car dealers updated by the Tesla Owners Association and Kentucky on Friday. Its service center address in Louisville is also listed, indicating that Tesla may soon establish a physical store and service center in the state.Consumers in Kentucky cannot lease Tesla vehicles, and vehicle repairs and maintenance must be conducted across state lines.

With the sales license obtained, Tesla's plan to build a physical store and service center in Louisville is expected to accelerate. IT Home noted that the company has begun recruiting sales consultants, vehicle preparation specialists, sales managers, and service technicians. Industry insiders predict that Tesla may also open a store in Lexington in the next few years.

Tesla has been committed to challenging the traditional car sales model and has adopted various strategies to circumvent direct sales restrictions in other states. For example, in Connecticut, Tesla cooperated with the local Mohegan Indian tribe to open stores on tribal land, thereby circumventing dealer laws. In addition, Tesla has also been involved in legal disputes with dealer groups in multiple states, including suing the state government in Louisiana to prevent it from performing warranty repairs.