SJC rules Tesla can sell cars directly
Boston Globe - 09/16/2014
For now, Massachusetts car buyers should not expect a significant ripple effect from Monday’s ruling, said John E. Kwoka, an economics professor at Northeastern University who submitted an unsolicited friend-of-the-court brief in support of Tesla. Major automakers like Toyota, Ford and General Motors are still prohibited from opening direct-sale dealerships because of their existing relationships with independent franchises.
But Kwoka suggested Tesla’s win could pave the way for foreign carmakers with no current presence in the state to enter the market and bypass the franchise dealer system. “This means the incumbents can’t just squelch those new entrants immediately,” he said.