agent Entrepreneur logo
MenuMENU
SearchSEARCH

Tesla to Expand in Pennsylvania

July 8, 2014
2 min to read


Tesla Motors Inc., which has battled U.S. auto dealer groups over its direct sales of electric cars through company-owned stores, has received approval from lawmakers in Pennsylvania to expand retail operations there, reported Newsday.


The Pennsylvania House Wednesday passed legislation, approved by the Senate last week, that lets the Palo Alto, California-based carmaker increase the number of stores in Pennsylvania and add more service centers, the company said in an emailed statement.

Ad Loading...


The legislation, which allows as many as five stores in the state, passed 197-2 in the House and still must be signed by Gov. Tom Corbett, a Republican, to become law.


“We hope the process in Pennsylvania serves as an example for how productive cooperation can lead to a win for all parties involved, dealers and legislators included,” Diarmuid O’Connell, Tesla’s vice president for business development, said in the statement.


Unlike previous fights, the Pennsylvania deal arose from cooperation with an industry group, the Pennsylvania Automotive Association, he said.


“It seems state legislatures are feeling pressure to change state laws,” said Ben Kallo, an equity analyst with Robert W. Baird & Co. in San Francisco who rates Tesla at outperform. “Pressure is coming from their constituents of all political parties rather than special interest groups.”


The legislation is the latest win for the automaker led by Elon Musk, who has avoided selling his $71,000 Model S sedans through traditional car dealerships. Last month, the New Jersey Assembly approved a bill that creates a loophole for direct sales of zero-emission autos, and New York Gov. Andrew Cuomo signed a similar measure into law. The company this year also won an exemption to an Ohio statute banning direct auto sales and avoided a similar ban in Missouri.

Ad Loading...


The company’s ability to avoid being shut out of U.S. states with strict franchise dealer rules shows Musk is “disrupting” the conventional auto sales model, said Karl Brauer, a senior analyst with Kelley Blue Book.


“Tesla is seen as a kind of new, hip, up-and-coming company in the auto business,” Brauer said in a phone interview. “Some of the initial reactions against them by dealers in other states may have backfired a bit on the dealers — making them seem a little too tied to the past.”


Tesla now operates a Pennsylvania store in King of Prussia and service centers in Devon and Norristown, and plans to open a store in Devon soon, according to its website.


While Tesla would prefer no cap on the number of stores it can open in Pennsylvania, “I regard this as the glass is half full,” O’Connell said in a phone interview.

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →