Tesla finds way around sales ban

Tesla, after being prevented from selling cars in the lucrative Connecticut market, has reportedly found a loophole – consumers will be allowed to lease a Tesla.

The workaround comes after car dealers and politicians in the US state have been blocking Elon Musk’s company from attempts to legally sell cars.

The Connecticut Automotive Retailers Association (CARA) has been lobbying to retain its monopoly on vehicle sales by using old laws that prohibit automakers from selling vehicles to consumers without going through franchise dealerships.

Car dealers have a lot of influence on state politicians and they have managed to shut down three different efforts from Tesla to change the law in Connecticut, reports the website Electrek.

In the few US states where Tesla is not officially allowed to sell direct to consumers at retail locations, it has opened “galleries” where employees can explain the company’s products to the public, but they can’t discuss sales.

CARA had Tesla’s “gallery” in Connecticut shut down but that failed to deter the company and it has discovered a workaround to start leasing cars out of its showroom in Milford.

“A Tesla leasing location can offer leases but cannot conduct any activity related to the sale of a motor vehicle,” the automaker says. “Because it is a manufacturer, Tesla is not eligible to apply for a dealer licence under state law, but Tesla is eligible to hold a leasing license, and thus is authorised to offer leases in Connecticut.

“Visitors can now speak with a Milford gallery adviser about electric vehicle technology and experience a demonstration drive if they are considering leasing a Tesla”

CARA’s president Jim Flemming says he hasn’t seen the details of the automaker’s arrangement, but claims it may by a “violation” of state legislation. “This, I think, is another attempt by Tesla to ignore Connecticut law,” he adds.