Earlier this week, Tesla won approval to open three new stores in Virginia as per the Virginia Department of Motor Vehicles. The automaker had applied back in January to open stores in Charlottesville, Norfolk and Arlington.
The decision on Tuesday noted that Tesla is eligible under state law to open these stores. However, auto manufacturers are generally prohibited from owning dealerships in the state. Tesla still needs to get a licence from the Motor Vehicle Dealer Board.
The Virginia Automobiles Dealers Association condemned the ruling. The group also condemned Tesla’s other stores in the state. However, the group confirmed it would not wage a legal challenge against the decision.
Instead, the Association plans to compete with Tesla directly with its members launching several EVs over the next few years.
Tesla currently has two stores in Northern Virginia and one in Henrico country. The company did not comment on the decision, nor did it confirm locations or sites within the markets.