Boston, MA 09/03/2014 (wallstreetpr) – Tesla Motors Inc (NASDAQ:TSLA) denied the claims of Georgia Dealers in context with breach of license agreement. The company, which at present, is facing challenge from dealerships in Georgia over illegal selling of cars, refused to accept any claims saying that the petition filed by auto retailers, was not valid at all.
Complaint from Georgia Automobile Dealers Association
According to the complaint filed by Georgia Automobile Dealers Association (GADA), Tesla motors violated rules which envisage that restricts the company from selling a little less than 150 electric sedans to customers directly on an annual basis.
In response, Tesla Motors Inc (NASDAQ:TSLA) said that Georgia’s sales restrictions in respect to electric sedans as per the license agreement were applicable only on the basis of calendar year. GADA represents 500 Georgian dealerships and it filed a petition saying that the electric car-maker had sold a total of 173 sedan models from the time period of October till June.
Statement from Tesla
Tesla Motors Inc (NASDAQ:TSLA) spokesman, Simon Sproule stated that the company is complying with the Georgia laws completely while opening of retail operations or functioning there. In an e-mailed reply to Bloomberg, the spokesman said that the GADA petition was “thinly veiled” act of repressing innovation and new technology, while at the same time, limiting consumer choices.
Tesla’s Spate with the Dealers
GADA petition is seen as the recent spate of company with dealers, after it has had conflicts and arguments in Pennsylvania, New York, Ohio, New Jersey and Missouri. The CEO and Co-Founder of Tesla Motors Inc (NASDAQ:TSLA), Elon Musk, in the meanwhile said that Model S of Tesla has unique characteristics, which make this league’s sedans, most sold across staff and stores of company.
On the other hand, dealers opine that this attitude of company will set up an example which is most likely to challenge the way franchisees have been selling cars since years.
