Tesla’s Direct EV Sales Model Wins Delaware Top Court Reprieve

Tesla Inc.'s direct-to-consumer electric vehicle sales model doesn’t violate a Delaware law prohibiting manufacturers from owning interests in dealerships, the state high court said Monday.

The state motor vehicle department can reject applications for dealer licenses when companies violate the franchise law, but Tesla’s direct sales model doesn’t run afoul of the statute, which is intended to regulate manufacturer-dealer relationships, the Delaware Supreme Court said.

Tesla applied for a dealer license in 2019 and the Delaware Department of Motor Vehicles allowed the Elon Musk-led company to open a location where would-be customers could view—but not purchase—its electric cars. Tesla ...