TSLA411.79013.06%
GM78.410-0.29%
F12.1800.01%
RIVN14.180-0.3%
CYD43.7300.45%
HMC24.060-0.65%
TM189.000-6.05%
CVNA400.22010.84%
PAG171.6101.88%
LAD291.1001.7%
AN205.2900.52%
GPI350.1606.19%
ABG200.4502.74999%
SAH80.1301.13%
TSLA411.79013.06%
GM78.410-0.29%
F12.1800.01%
RIVN14.180-0.3%
CYD43.7300.45%
HMC24.060-0.65%
TM189.000-6.05%
CVNA400.22010.84%
PAG171.6101.88%
LAD291.1001.7%
AN205.2900.52%
GPI350.1606.19%
ABG200.4502.74999%
SAH80.1301.13%
TSLA411.79013.06%
GM78.410-0.29%
F12.1800.01%
RIVN14.180-0.3%
CYD43.7300.45%
HMC24.060-0.65%
TM189.000-6.05%
CVNA400.22010.84%
PAG171.6101.88%
LAD291.1001.7%
AN205.2900.52%
GPI350.1606.19%
ABG200.4502.74999%
SAH80.1301.13%

Tesla allowed to operate dealerships says Delaware Supreme Court

On May 15, The Delaware Supreme Court reversed a 2022 decision blocking Tesla from operating its own dealerships in the state
On May 15, The Delaware Supreme Court reversed a 2022 decision blocking Tesla from operating its own dealerships in the state

On May 15, The Delaware Supreme Court reversed a 2022 decision blocking Tesla from operating its own dealerships in the state.

The electric vehicle brand applied for a dealer license on two previous occasions, but was denied both times by the Delaware Department of Motor Vehicles. Local officials argued that the state’s Franchise Act had effectively banned automakers from adopting direct sales models by prohibiting the ownership or operation of a manufacturer-owned storefront. Prior to arriving in the Supreme Court, Tesla filed an appeal in Superior Court, which upheld the ruling.

However, Supreme Court Chief Justice Collins Seitz Jr. disagreed with the DMV’s and Superior Court’s interpretation of Delaware’s Franchise Act, ruling instead that the law’s language technically does not apply to the electric vehicle brand. “It bears repeating that the Franchise Act regulates the business relationship between a manufacturer and a dealer,” he wrote. “When the definitions are read together, a ‘manufacturer’…manufactures or assembles ‘new motor vehicles’ that have been sold to a ‘new motor vehicle dealer’…Tesla’s electric cars will not be sold to a dealer that holds a valid sales contract by Tesla, and therefore it is not a ‘manufacturer.'”

Many EV brands have adopted similar direct sales models, despite fierce reactions from both officials and dealers in states with similar franchise protections. Retailers are primarily concerned that legacy manufacturers will be inspired to substitute independent businesses with their own direct-to-consumer models. Outside of Delaware, Tesla has frequently engaged with lawmakers over the issue, often prevailing in court after being blocked from setting up its own storefronts.

Read More
More from Articles
Auto trade groups urge USMCA extension as tariff pressures reshape industry

Auto trade groups urge USMCA extension as tariff pressures reshape industry

- May 8, 2026
On the Dash: Dealers depend on USMCA stability to maintain predictable vehicle pricing and supply across North America. Any fragmentation of the trade agreement could raise costs and complicate sourcing...
Stellantis, Leapmotor expand partnership with Europe EV manufacturing push

Stellantis, Leapmotor expand partnership with Europe EV manufacturing push

- May 8, 2026
On the Dash: Stellantis is activating underused European plants, signaling potential volume stabilization and improved factory efficiency. Local EV production could help shield pricing from EU tariffs, supporting more competitive...
Toyota misses Q4 profit estimates as tariffs, China competition pressure earnings

Toyota misses Q4 profit estimates as tariffs, China competition pressure earnings

- May 8, 2026
On the Dash: Toyota’s weaker earnings and a lowered outlook highlight ongoing affordability and margin pressures that could influence dealer pricing and inventory strategy. The automaker’s expanded U.S. manufacturing investment...
Honda extends lifecycle of five models through end of decade

Honda extends lifecycle of five models through end of decade

- May 7, 2026
On the Dash: Honda dealers may face several years of aging inventory, increasing reliance on incentives and tighter margins to stay competitive. Honda is delaying major redesigns while shifting focus...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.