Tesla Motor's dealership problems are continuing, with the electric car company's founder, Elon Musk, confirming that the Virginia DMV has denied the brand a dealer licenses in the state.
Musk posted on Twitter:
“Not all good news. Virginia DMV Commissioner just denied Tesla a dealer license, despite Hearing Officer being in favor.”
Tesla's application for the dealer license had been opposed by the Virginia Automobile Dealers Association, echoing similar complaints by dealership groups in Texas who argue that the electric vehicle company should not be permitted to sell its cars directly to the public. Instead, they ould like the same independent dealership network that is already in place to be kept.
The decision to deny Tesla a dealers license in Virginia came even as the Virginia DMV Hearing Office recommended that they be granted license. Having decided that "Tesla has presented additional and persuasive evidence that there is no dealer, independent of Tesla, that would be available in the community or trade area" that could sell the Model S and other cars under the franchise model in a way in keeping with public interest, the Hearing Officer wrote: "I further find that the operation of a Tesla owned dealership would be in the public interest."
Virginia's DMV Commissioner, however, was unconvinced and overruled the Hearing Officer and rejected the request.