Tesla Wins Dealer Battle In MA: Direct Sales, Stores Are Legal

In the state-by-state war between Tesla Motors and car-dealer associations, the electric-car maker has now added another victory to its tally.

Massachusetts' highest court ruled this week that the state dealer association does not have standing to sue Tesla for operating one of its company-owned stores there.

The ruling by the state Supreme Judicial Court upholds a lower court's decision to dismiss a suit brought by the Massachusetts State Automobile Dealers Association.

MORE: MA Auto Dealers' Suit Against Tesla Dismissed By Judge

The court ruled that the law dealers were using to justify their suit was intended to protect franchised dealers from abuse by car manufacturers or distributors, The Boston Herald reports.

Since Tesla doesn't have any franchised dealers, the court decided, the law doesn't apply.

Massachusetts law still requires dealerships to be owned by independent franchisees, but Tesla has argued throughout that the stores aren't specifically involved in sales.

Since cars are ordered online, customers don't have to go to a store to buy one. Tesla views the stores primarily as a way to educate consumers about electric cars.

ALSO SEE: NJ Bill To Permit Direct Sales By Electric-Car Maker Tesla To Be Heard Tomorrow