If you’re in the market for a new car and are thinking a Tesla might be the way to go, be prepared to make the purchase out of state.
The opening of a new Tesla Motors dealership in Salt Lake City is on hold after lawmakers voted against revising a key state law.
Currently there is a provision that prohibits manufacturers from opening up sales locations that would compete with privately owned dealerships.
However, James Chen, vice president of regulatory affairs for Tesla Motors said his company doesn't operate using business models other dealers use.
"In the case of Tesla, we have no franchise dealerships anywhere in the world, let alone in Utah, so we are not unfairly competing with our own franchisees. Instead, we are asking to be allowed to compete on the open market,” Chen said.
Republican Rep. Kim Coleman of West Jordan sponsored a bill that would change the law allowing Tesla to sell vehicles in Utah, but legislators voted it down the House bill Monday.
Chen said that dealership association lobbyists instilled confusion amongst lawmakers, resulting in the dead bill and a blow to Utah economic principles.
"I understand their confusion, and I understand that perhaps they were uncomfortable moving to a position that they weren't absolutely clear on," Chen said. "To us, there is no question that this is all about the free market allowing consumers to be able to choose how and where they want to buy a vehicle. Really, it’s a blow to Utah consumers that this failed."
For now Utah consumers looking to purchase a Tesla can travel to states such as Colorado that allow vehicle sale or purchase online for pickup in California.
Chen went on to say, while Tesla is disappointed, they have faced similar issues in Arizona, Texas and Connecticut, and his company in looking for other avenues toward opening the Utah location.
The Associated Press contributed to this article.