Current Missouri law prohibits automaker franchisors from competing against their franchisees, consistent with the spirit of laws in other states. Without any franchisees, Tesla is not a franchisor and therefore permitted to sell directly to customers in Missouri.
The bill, HB 1124, was originally introduced simply to change the laws regarding all-terrain vehicles and other off-highway vehicles, removing requirements regarding seats and steering controls. It also proposes a bit more flexibility in the width, length and weight of such vehicles.
Although the bill has allegedly been in circulation since December 2013 and recently passed the House on April 17, legislators earlier this week proposed an amendment that would affect the franchise laws by reinterpreting the term “franchisor” to include any manufacturer attempting to establish a business location or facility in the state.
“Tesla complies with that statute because we do not compete with any franchise. Just as we saw in New Jersey, however, this bill amendment expands the scope of the existing law well beyond its original intent,” Tesla said in a statement. “To be clear: this is worse than a mere case of dealers trying to protect an existing monopoly – this is a case of dealers trying to create a monopoly.”
The company blames dealer lobby groups for pressuring legislators and attempting a “sneak attack to thwart due process and hurt consumer freedom in Missouri.”
Tesla has received bipartisan support for its direct-sales model, encouraging lobbyists to back down and reach compromises in other states. The Missouri move, however, suggests the war is far from over.
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