Tesla brings its own lobbyists to Missouri battle

May 15, 2014
Tesla Motors has reportedly hired its own lobbyists to fight the franchise-law battle in Missouri.

Reacting to a last-minute amendment to House Bill 1124 that would bar the company from selling directly to customers in the state, Tesla hired a group of ten attorneys and former legislators to prevent the proposal from being signed into law, according to PoliticMo.

On the other side, the Missouri Automotive Dealers Association is said to have stepped up pressure by expanding its own list of lobbyists.

The fight centers around a proposed change to the Missouri dealer franchise laws, which currently only prohibit franchisors from competing with franchisees. Dealers want the language changed to prohibit all manufacturers from selling directly to consumers, including companies that do not already have franchise agreements with dealers.

Tesla has blasted the proposal as a “sneak attack” that was added to an unrelated bill after its original concept — changes to all-terrain-vehicle classifications — was accepted by the legislature and moved forward toward a final vote.

The California-based startup appears to have the upper hand at the moment, as House Majority Floor Leader John Diehl suggests the bill will be stalled and unlikely to receive a vote during this session.

“[Tesla and the dealer group] are going to work on it in the next year and try to find some agreement,” Diehl said. “A lot of it was the two sides needed to communicate a bit better and we got them communicating.”

Dealer lobbyists in other battleground states have reached compromises that allow Tesla to operate a limited number of retail outlets.

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