Tesla won’t set up a showroom in Connecticut as it originally planned, but its move to at least set up an automotive service center gained traction on Aug. 11, when East Hartford officials approved its latest application to build.
The electric vehicle manufacturer originally submitted to East Hartford’s Planning and Zoning Commission a permit application to build a showroom/service center in the area. The commission approved that in April.
But lawsuits seeking to stop Tesla from selling in the region questioned the legality of the issued permit, and the automaker ended up filing a revised permit application on July 27, according to the East Hartford Journal Inquirer.
At an Aug. 11 meeting, the commission tossed Tesla’s initial special-use permit in favor of approving the new one, which specifies it can only operate a service center in the region, not sell new or used cars.
Tesla’s presence in Connecticut has long been challenged because state law forbids auto manufacturers from selling directly to customers.
In June, Hoffman Auto Group of East Hartford sued Tesla, its development company InSite Development Services, and the planning and zoning commission over the initial permit. The auto group said a brick-and-mortar Tesla store selling directly to customers would violate the aforementioned state law.
Lawsuits against the three entities are pending, according to court records.
Hoffman and other dealerships are concerned Tesla will pull money from traditional dealerships and cause a rift in local automotive markets. But others, especially Tesla owners and potential buyers in the state, want direct access to the automaker’s products, instead of having to go out of state.