- Associated Press - Wednesday, June 28, 2017

RICHMOND, Va. (AP) - The Virginia Automobile Dealers Association has legal standing to challenge a state Department of Motor Vehicles decision allowing Tesla to open a dealership.

The Richmond Times-Dispatch reports that on Monday, Judge Gregory Rupe ruled the association can appeal Virginia DMV Commissioner Richard D. Holcomb’s decision granting Tesla’s application for its second dealership in the state. The ruling doesn’t affect the store’s opening but allows the association’s challenge to proceed.

The association argues state law prohibits Tesla from owning dealerships.

The California-based manufacturer makes electric cars sold online and at company-owned dealerships. Tesla opened a store near Tysons Corner in February 2015 and says it’s already outfitting another in Henrico County.

Tesla says its direct-to-consumer sales model, and the vehicles’ technical complexities make them impossible for independent dealers to properly sell.

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Information from: Richmond Times-Dispatch, https://www.timesdispatch.com

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