Is Tesla’s Dealership Model Illegal?

Could be. Sustainable Business Oregon reports:

Oregon’s automobile dealers association is among those in the country asking questions about the legality of the slick new Tesla Motors retail stores including the one that opened at Washington Square in July.

According to Automotive News, dealer associations in a handful of states, and state regulators in at least one case, say Tesla’s stores violate state franchise laws that prohibit factory ownership of dealerships.