Connecticut’s ban on the direct sale of automobiles to consumers will stand, at least for another year.
Lawmakers ultimately opted not to take up SB 127, the so-called “Tesla bill” — which would have allowed Connecticut residents to buy electric vehicles directly from a manufacturer without going through a franchised dealer — in the closing days of the 2021 legislative session.
The proposal had faced stiff opposition from car dealers, who have warned that tampering with the state’s existing dealer franchise system will hurt not only their businesses but also consumers, who they claim would be left without a knowledgeable advocate in the event of a mass product recall or other issue.
Dealers have also pointed to the potential for exploitation if disreputable companies are allowed to sell defective cars directly to buyers and then simply move or disband their operations to avoid legal consequences.
California-based Tesla Inc. had backed the bill, as had a number of House Democrats, who viewed the measure as a means to encourage the adoption of cleaner-running electric vehicles and recapture at least some business from high-income residents who have been traveling to Tesla galleries in neighboring states to place their orders and pick up their new cars.
The end of the most recent legislative session marks the sixth defeat for supporters of the direct sales proposal. Lawmakers put forward a version of the bill every year between 2015 and 2019, and each time it stalled in the General Assembly.
Even without the option of direct sales, however, Tesla seems intent on expanding its presence in Connecticut.
The company is currently in the process of setting up a showroom and service center in East Hartford, at the address of a former Volvo dealership. In April, a developer working on Tesla’s behalf secured a special use permit and site plan modification for the property from the town’s Planning and Zoning Commission, allowing the project to move forward.
Hoffman Auto Group, which is based in East Hartford, has sued Tesla, Tesla’s developer and the East Hartford Planning and Zoning Commission, arguing that Tesla is violating the state’s dealer franchise law and that town officials erred in giving their approval.
Tesla has been leasing cars from its existing Connecticut showroom, in Milford, since last year.
