Legislation that would pave the way for electric car maker Tesla Inc. to open its first sales location in Wisconsin was proposed Wednesday.
But it won't become law without a fight from the Wisconsin Automobile & Truck Dealers Association.
Under current dealer franchise statutes, auto manufacturers aren’t allowed to sell directly to consumers in Wisconsin. Vehicles must be sold through dealers in the state, a sort of middleman approach that Palo Alto, Calif-based Tesla doesn't use.
State Rep. Rob Brooks (R-Saukville) said state government shouldn't "stand in the way" of Tesla coming to Wisconsin, so he co-authored legislation, called the “Electric Vehicle Freedom Act,” to address the issue. The bill's lead sponsor in the State Senate is Chris Kapenga (R-Delafield).
"It just simply states that a manufacturer that builds only electric cars and has done direct sales can do that in the state of Wisconsin," said Brooks, noting that Illinois and MInnesota already have locations selling American-made Tesla vehicles.
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Consumers in Wisconsin can order a Tesla vehicle online, but would have to pick up the car outside the state. The nearest Tesla site — Tesla calls them “stores” — to Milwaukee is in Highland Park, Ill. Brooks said electric cars, and direct selling, are part of the future and shouldn't be hampered by state law. .
Brooks said he was shocked to learn "that we were hindering their ability to sell — and my constituents ability to buy and get their cars serviced here."
But Bill Sepic, president of the Wisconsin Automobile Dealers & Truck Association, said state laws governing vehicle sales should be left alone, and that Tesla ought to apply for an exemption if it wants to sell direct to consumers here. He said Wisconsin laws are in place for the benefit of consumers, dealers and manufacturers.
"We do have concerns that you could be setting up parallel laws that would give one company benefits over the other," he said.
Sepic said he is sure existing dealers — or new ones — would be willing to set up Tesla to sell and service the company's electric vehicles in Wisconsin.
"We would welcome any manufacturer to have their vehicles sold in this state, provided they follow the laws of the state," Sepic said.
Tesla stores typicially feature showroom models and cars that can be test driven, along with limited on-site inventory. Tesla. already has eight “super charger” stations that recharge Tesla batteries relatively quickly set up across Wisconsin, and is adding more.
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