A battle between Tesla and the state of Delaware has finally concluded, as the Delaware Supreme Court overturned a previous ruling that banned the automaker from selling cars in the state. Previously Tesla was unable to open a dealership in Delaware, which disrupted the company’s direct-to-customer sales strategy.
In 2019, the Delaware Department of Motor Vehicles (DMV) rejected Tesla’s proposal to establish a dealership within the state, citing a violation of the Motor Vehicle Franchising Practices Act, which prohibits automakers from owning dealerships. However, Tesla was permitted to operate a “gallery” at the Christiana Mall and a service center in Newport, as long as vehicle sales did not occur at those locations.
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