Help us support direct sales of Tesla vehicles in Delaware
Send a message to the Governor to make your voice heard.
The Delaware Department of Transportation (DelDOT) issued an "intent to deny" Tesla’s application for a sales license to open a full-service Tesla store in Delaware, even though the law is clearly not intended to protect car dealers from all competition. The motor vehicle franchise law was written to protect Ford from selling directly and competing against local Ford dealers. Tesla has never sold through franchised dealers, and their strong interpretation is that they are eligible to sell directly under Delaware law for that reason.
As a result of this decision, Delaware is now missing out on business investment, job growth, and revenue that would be created by allowing EV companies to open sales locations in DE. Most importantly, Delawareans should be able to purchase their vehicles in state and not be forced to go to Maryland, Pennsylvania, or New Jersey.
Delaware Valley Tesla Owners Club agrees that Delaware needs more jobs, more competition, more innovation, and more electric vehicles, not less. Therefore please consider contacting Governor Carney to make your voice heard and share your thoughts about DelDOT keeping Tesla out of Delaware.
We asked one of our members and Delaware resident, CJ Myers, to share with us his letter to Governor Carney.
Governor Carney,
In December of 2019 I met with you at Delaware Technical Community College for your announcement of the extension of the Delaware Clean Vehicle Rebate Program. After the press took their photos, I made you aware that none of the electric vehicles you were standing next to were purchased in our state. Most auto manufacturers and dealerships in the state of Delaware did not sell or service electric vehicles and residents had to travel to Maryland or New Jersey to purchase them. Which, speaking from personal experience, was at a minimum inconvenient and worse, would discourage adoption of EVs.
Since then, a lot has changed. The options, availability, and demand for EVs has increased. Many auto manufacturers and dealerships in Delaware now sell EVs. However, the largest electric vehicle manufacturer by far, Tesla, is still not allowed to sell directly to consumers despite high demand. DelDOT issued an "intent to deny" Tesla’s application for a sales license to open a full-service Tesla store in Delaware. This impacts not one, but two key aspects of our state’s priorities: being pro-environment and pro-business.
Our state wants to lower our carbon emissions and transportation is the largest contributor. How can the state ask its residents to make the conscious effort of switching to EVs, which lowers their carbon footprints, without also giving them the ability to buy the most popular EV in our own state? In addition, our state and you personally are known to be pro-business. The highest priority on your agenda is business and job creation. Tesla opening full-service stores in our state would create more jobs.
Please speak with the DelDOT to resolve this issue.
Thanks,
CJ Myers
I asked DELDOT Community Relations about this yesterday and here's what they said:
"Thank you for contacting the Delaware Department of Transportation. Tesla has applied for a retail dealer’s license to open a dealership location in Delaware. Per State of Delaware licensing statutes, the license application has been denied. Currently, Delaware code (6 Del. C. §4913), prohibits vehicle manufacturers from operating a retail dealership in Delaware. The issuance of a license by DMV to Tesla would result in Tesla not being in compliance with the laws of the State of Delaware. This statute applies to all manufacturers, regardless of the type of car they are producing.
Tesla has appealed the decision to deny it a license and a hearing is scheduled later this month to allow the company to present evidence as to why they believe the denial was improper."
I looked up the law and it looks like here is DELDOT's issue:
"§ 4913. Unlawful acts by manufacturers.
(b) It shall be a violation of this chapter for any manufacturer:
(14) To directly or indirectly own an interest in a dealer or dealership; or operate or control a dealer or dealership; or act in the capacity of a dealer except as provided by this section.
a. A manufacturer or distributor may own an interest in a franchised dealer, or otherwise control a dealership for a period not to exceed 24 months from the date the manufacturer or distributor acquires the dealership if the dealership is for sale by the manufacturer or distributor at a reasonable price and on reasonable terms and conditions.
b. A manufacturer or distributor may temporarily own an interest in a dealership if the manufacturer’s or distributor’s participation in the dealership is a bona fide relationship with a franchised dealer who:
1. Is required to make a significant investment in the dealership, subject to loss;
2. Has an ownership interest in the dealership; and
3. Operates the dealership under a plan to acquire full ownership of the dealership within a reasonable time and under reasonable terms and conditions.
(15) To engage in business as a dealer or to manage, control, operate or own any interest in a dealership either directly or indirectly, if the primary business of such dealer or dealership is to perform repair services on motor vehicles, except motor homes, pursuant to a manufacturer’s or franchiser’s warranty."
http://delcode.delaware.gov/title6/c049/index.html#4913.
Clearly, DELDOT's interpretation is that Tesla is requesting to open their own dealership, which is currently not allowed. Personally, I think there is a distiction between a full-service store and a dealership franchise. Since Tesla has no dealership franchise, they should be permitted to sell directly to customers and operate their own local service centers.
So, looks like next step is to send a proposed revision of this law to our elected officials then. How about adding this to the end of 4913:
"(e) Notwithstanding the foregoing, nothing herein shall preclude any manufacturer from selling directly to customers and providing maintenance and repair services in absence of any dealer franchise in the state of Delaware for that manufacturer."
Thoughts?
Thank you for sharing this information. As a Newark, Delaware resident currently saving up to buy a Tesla sometime this year, this will directly impact my family and I. I sent governor Carney a message and shared this article to anyone and everywhere I thought might be able to join this cause.
We will not be pushed around by big oil bullies any longer. It's time to push back.
This is a clear influence of gas and oil companies! How can DE claim they are encouraging EV adoption in the state when EV buying is made more difficult by having to travel to another state? Even the big car makers are converting to EV's, get on board DE and let Tesla compete for EV business on a level playing field.
Not a resident of DE, but I wholeheartedly support my friends there in their effort to allow Tesla to sell their vehicles. This is clearly not in the spirit of this rule and it's an archaic rule in today's modern times.