The company reportedly received approval to sell directly to customers in Georgia, but only for 150 vehicles annually. The Georgia Automobile Dealers Association has accused the company of selling 173 units at its Atlanta store, allegedly in violation of the waiver terms.
The group wants the Georgia Department of Revenue to revoke Tesla’s license and block the company from selling any more cars in the state.
“The petition filed by the Georgia Automobile Dealers Association is nothing more than a thinly veiled attempt to stifle new innovation and eliminate consumer choice,” Tesla said in a statement published by CNN.
Most states have franchise laws that prohibit automakers from competing with their franchisees, though Tesla has argued that such laws should not be applied to a company that has no franchise dealer network.
Georgia officials have not yet issued a response to the dealer petition.
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