State Supreme Court overturns judge’s ruling prohibiting Tesla dealership in Delaware

By RANDALL CHASE
AP Business Writer

DOVER, Del. (AP) — Delaware’s Supreme Court has overturned a judge’s ruling upholding a decision by state officials to prohibit electric vehicle maker Tesla from selling its cars directly to customers. A Superior Court judge ruled last year that Delaware’s Motor Vehicle Franchising Practices Act prohibits Tesla, as a manufacturer, from selling its electric cars directly to customers in Delaware. The Supreme Court reversed that decision on Monday and sent the case back to Superior Court. The justices noted that the franchise act was enacted to address the disparity in bargaining power that permitted automobile manufacturers to exert economic pressure over their franchises. Tesla sells its vehicles directly to consumers without using independent franchise dealers.