• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’

2

Buffett says AI giants are ‘playing a game they don’t want to play’ in the AI race, reveals he was behind Berkshire’s $31 billion bet on Google

3

26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave

1

FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’

2

Buffett says AI giants are ‘playing a game they don’t want to play’ in the AI race, reveals he was behind Berkshire’s $31 billion bet on Google

3

26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave

These Car Dealers Really, Really Hate Tesla

By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
November 28, 2016, 12:50 PM ET
US-JAPAN-ABE-TESLA
A Tesla Model S P85D is seen at Tesla's headquarters in Palo Alto, California on April 30, 2015 during the visit of Japanese Prime Minister Shinzo Abe. The Prime Minister took a test drive in the vehicle with Tesla CEO Elon Musk. AFP PHOTO / JOSH EDELSON (Photo credit should read Josh Edelson/AFP/Getty Images)JOSH EDELSON AFP/Getty Images
Add Fortune on Google for similar content.

Virginia’s 452 auto dealerships are under attack. And the predator—as Virginia Automobile Dealers Association President Don Hall sees it—is Tesla.

Tesla, the all-electric automaker and energy company sells its own cars directly online and through its own branded stores, not through franchised dealerships. The company has one store and service center in Virginia as well as one “gallery,” where customers can look at the cars but not buy, or even test drive or discuss the price. And Tesla wants to open up one more store, where it can actually sells its vehicles, in Richmond.

This isn’t sitting well with Virginia’s dealership association.

“For the last 29 years I have fought as a gladiator to protect the rights of the Virginia auto dealers and their franchise system,” Hall says in a YouTube video first posted in September and reported on by the Washington Post on Sunday. “We are under attack. This system is under attack by the likes of Tesla and many others out there who believe the franchise system is a dinosaur and no longer works.”

Hall then describes how other industries have succumbed to such attacks and that the dealership franchise system is the next on the “hit list.”

The video, which you can see below, was meant to promote the VADA’s town hall-style meetings to educate dealers how they can lobby legislators to “understand the importance of the franchise system.”

Hall closes the video with “Let’s all strap on whatever it takes to win and let’s win this fight to protect the franchise system.”

The VADA held its last town hall meeting October 4 in Richmond, according to updates on its website.

[youtube https://www.youtube.com/watch?v=HzOGihr8Kns]

 

The video provides just a sample of what legal and lobbying pressure Tesla is likely to face in the future.

Virginia Department of Motor Vehicles Commissioner Richard D. Holcomb is expected to decide on Tesla’s application for a Richmond store before December 14. And the VADA as well as Tesla have shown they’re willing to take their battles to court, if necessary.

Dealerships are protected in all U.S. states by laws that prevent automakers with existing franchisees from opening their own dealerships to compete with them.

Virginia law prohibits a manufacturer to own or operate a dealership. However, the state’s the Department of Motor Vehicles commissioner is allowed to grant a license if a hearing determines that there is no dealer independent of the manufacturer that can operate a franchise. Tesla was granted such a license through a settlement agreement in December 2013.

When Tesla filed an application to open a second store, the VADA responded with a lawsuit. The lawsuit, filed in March, claims Tesla and Holcomb violated a 2013 agreement that the automaker could not own or operate a second dealership in the state until August 2017.

Get Data Sheet, Fortune‘s daily technology newsletter.

Virginia’s dealerships have considerable economic power. The state’s 452 dealerships generated $22.2 billion in sales in 2015, according to the National Automobiles Dealership Association. Tesla doesn’t provide a breakdown of how many vehicles it delivers per state. However, Tesla says it plans to deliver 50,000 vehicles total (that’s a global number) in 2016, according the company’s most recent outlook. In the third-quarter, Tesla generated $21.88 million of net income—its first quarterly profit (based on generally accepted accounting rules) in three years.

Dealer associations in a number of U.S. states, including Massachusetts, Missouri, North Carolina, and Washington, have tried to expand the law to include manufacturers like Tesla that don’t have franchise dealers.

Some states—such as Arizona, Michigan, and Texas—have taken an extra step and passed laws that ban direct sales. In these states, Tesla can still have a showroom, where consumers can look, but not buy, its Model S, Model X, and eventually, Model 3 vehicles. Tesla staff cannot discuss the cost of the car. They must instead direct customers to the website or a store in a neighboring state for more information.

About the Author
By Kirsten Korosec
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

European Commission President Ursula von der Leyen in Brussels on July 13, 2026. (Photo: John Thys/AFP/Getty Images)
NewslettersFortune Tech
Europe has two new rules for Google that will change the way AI assistants work on Android devices
By Andrew NuscaJuly 17, 2026
2 hours ago
Chesky
InvestingMarkets
Tech stocks lead steep global sell-off as investors lose faith in AI chip trade
By Jim EdwardsJuly 17, 2026
2 hours ago
Top CD rates from major banks July 17, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
Personal FinanceCertificates of Deposit (CDs)
Top CD rates from major banks on July 17, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
By Joseph HostetlerJuly 17, 2026
2 hours ago
Top CD rates today, July 17, 2026: Lock in up to up to 4.40%
Personal FinanceCertificates of Deposit (CDs)
Top CD rates today, July 17, 2026: Lock in up to up to 4.40%
By Glen Luke FlanaganJuly 17, 2026
2 hours ago
The top high-yield savings rates: Up to 4.50% on July 17, 2026
Personal FinanceSavings accounts
The top high-yield savings rates: Up to 4.50% on July 17, 2026
By Glen Luke FlanaganJuly 17, 2026
2 hours ago
Current price of Bitcoin for July 17, 2026
Personal FinanceCryptocurrency
Current price of Bitcoin for July 17, 2026
By Joseph HostetlerJuly 17, 2026
2 hours ago

Most Popular

FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’
C-Suite
FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’
By Fortune EditorsJuly 15, 2026
2 days ago
Buffett says AI giants are ‘playing a game they don’t want to play’ in the AI race, reveals he was behind Berkshire’s $31 billion bet on Google
Big Tech
Buffett says AI giants are ‘playing a game they don’t want to play’ in the AI race, reveals he was behind Berkshire’s $31 billion bet on Google
By Mia OsmonbekovJuly 16, 2026
17 hours ago
26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave
Law
26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave
By Barbara Ortutay, Alexandra Olson and The Associated PressJuly 15, 2026
2 days ago
Trump's 'American Flag Blue' in the Lincoln Memorial pool is already gray — and the Olympic canoer 'vandal' is fighting his arrest
Politics
Trump's 'American Flag Blue' in the Lincoln Memorial pool is already gray — and the Olympic canoer 'vandal' is fighting his arrest
By Matthew Daly and The Associated PressJuly 16, 2026
24 hours ago
JPMorgan CEO Jamie Dimon says 300,000 workers are needed to rebuild American shipbuilding—with jobs paying $100,000 without a college degree
Success
JPMorgan CEO Jamie Dimon says 300,000 workers are needed to rebuild American shipbuilding—with jobs paying $100,000 without a college degree
By Preston ForeJuly 16, 2026
21 hours ago
Current price of oil as of July 16, 2026
Personal Finance
Current price of oil as of July 16, 2026
By Joseph HostetlerJuly 16, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.