By Peter Hall | Pennsylvania Capital-Star
This story comes from Pennsylvania Capital-Star, independent reporting on state government that impacts communities statewide.
For more than a decade, Tesla Motors has been the only electric vehicle manufacturer permitted to sell its cars directly to consumers in Pennsylvania.
Legislation approved Monday in the state House Commerce Committee would open the direct sales model to other EV makers that don’t have a network of franchised dealerships.
The bill’s prime sponsor, Rep. Gregory Scott (D-Montgomery), told the panel other states have modernized their laws to accommodate the new technology and business models. But a 2014 amendment to Pennsylvania’s Board of Vehicles Act was so narrowly drafted that only Tesla is permitted to sell its vehicles directly to customers.
“At its core, this bill asks a simple question: If one manufacturer is allowed to operate under a direct sales model in Pennsylvania, why shouldn’t other similarly situated manufacturers be afforded the same opportunity?” Scott said.
The legislation passed with a 14-12 vote and will now be considered on the House floor.
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The amendment from a dozen years ago was introduced by former Sen. John Rafferty (R-Montgomery). According to Scott’s memorandum seeking support for his measure, Rafferty’s legislation required an automaker to have been in business for the previous 12 months.
“At that time, Tesla Motors was the only EV manufacturer that fit this description. Tesla Motors will be the only EV manufacturer to ever fit that description,” Scott’s memo said.
According to the Electrification Coalition, a nonprofit that supports adoption of electric vehicles, 18 states forbid vehicle manufacturers from selling cars and trucks without going through a dealership. Another nine, including Pennsylvania, allow only Tesla to open retail stores and sell directly, the coalition said.
Buyers in those states are unable to purchase from newer EV companies such as Aptera, Arrival, Lucid, Rivian, or VinFast. The group also notes the law prevents manufacturers based in Pennsylvania, such as Mack Trucks — which has an electric truck assembly line in Lehigh County — from selling directly to businesses or government agencies.
Scott said his legislation has support from all EV manufacturers including Tesla.
Rep. Valerie Gaydos (R-Allegheny) said that while she is generally supportive of allowing direct-to-consumer sales models, dealerships offer consumer safeguards. She also noted that the legislation involves issues of auto dealer licensing and moved to re-refer the bill to the Professional Licensure Committee. The motion failed by a 12-14 vote.
Rep. John Lawrence (R-Chester), the ranking Republican committee member, noted he had introduced similar legislation in a prior session and expressed concerns that the new measure would have unintended consequences.
“It would allow legacy manufacturers the opportunity to sell newly introduced models under their existing marques directly to consumers, which I don’t think is the intention of the bill,” he said.
He added that Scott’s bill had been added to the committee’s referred legislation only days before the vote.
“I think this is a topic that would be ripe for a very interesting hearing, and I think is one that we should have. But until that time, I will be a no vote on the legislation,” Lawrence said.
