Tesla wins battle over dealerships in Massachusetts

BOSTON, Sept. 17 (UPI) -- Innovative automaker Tesla Motors has won the right to sell its vehicles in Massachusetts directly to customers.

The Supreme Judicial Court on Monday dismissed a lawsuit filed by the Massachusetts State Automobile Dealers' Association against the electric vehicle maker.

The MSADA tried to argue Tesla's direct-to-consumer model violated a law that prevented car manufacturers from also owning car dealerships, claiming Tesla's model gave it an unfair advantage. Monday's decision upheld a lower court ruling that found the car dealers lacked standing, because the law is meant to protect dealers from abuse by their own brands' manufactures, whereas dealers do not compete to sell Tesla cars with Telsa itself.

While Tesla does not yet sell its vehicles in Massachusetts, the company had set up a display in a mall in Natick. It has since applied for and been granted a sales office in the state.

Texas, Arizona and Maryland all block direct-to-consumer car sales, preventing Tesla from selling in those states. A group of Georgia car dealers have also attempted to block Tesla sales, while New Jersey is in the process of allowing sales to resume.

Massachusetts State Automobile Dealers v Tesla