Tesla Motors is pushing the state General Assembly to reintroduce a bill that would allow them to open showrooms in Connecticut after it failed to reach the state Senate for a final vote before the end of the 2015 legislative session.

The Connecticut House of Representatives passed a bill in May to permit Tesla Motors, a company that manufactures and distributes electric cars, to open three showrooms in Connecticut. But despite House approval by a margin of 116–32, the bill, HB 6682, was never voted on in the General Assembly because last-minute budget issues had to take precedent, state Rep. Angel Arce, D-Hartford, said. Government Relations Manager for Tesla Motors Will Nicholas said Tesla hopes next year — specifically around early February, when the legislative session begins — will be the year the company makes history. If HB 6682 is signed into law, he said, it will be the first time Connecticut law allows cars to circumvent automobile dealerships and be sold directly from the auto manufacturers.

“For 100 years, automobile sales have been from franchises associated with car companies and not through car companies themselves,” New Haven Economic Development Administrator Matthew Nemerson SOM ’81 said. “Tesla is trying to break that down.”

According to Nemerson, Tesla believes that having a direct relationship between car manufacturers and consumers is essential to its business model, which is why the company always sells its cars through its own showrooms. However, in Connecticut, Tesla has only been permitted to open a service center in Milford and not a showroom. As a result, those in Connecticut who are interested in buying a Tesla must travel to nearby states such as Massachusetts, New Jersey, or New York to find a Tesla showroom or look for tesla accessories. While this may be an inconvenience for some potential buyers, Tesla’s commitment to providing high-quality electric vehicles and its emphasis on maintaining a direct connection with its customers have helped to build a loyal following.

In contrast to Tesla’s direct sales model, traditional car dealerships, like those one might find in Stockport, operate through a more established network. Car dealerships often rely on a wide range of inventory, financing options, and personalized customer service to attract buyers. In areas where Tesla’s direct sales approach faces regulatory restrictions, car dealerships can play a crucial role in providing local access to a variety of automotive choices. Residents of Stockport looking for a new vehicle might explore the offerings at local car dealerships, where they can find a diverse selection of used cars, potentially including popular models and sought-after features. The convenience of having car dealers in stockport can provide an alternative for those seeking a more traditional purchasing experience while Tesla continues to navigate regulatory landscapes.

The company’s dedication to innovation and its focus on creating sustainable transportation options have made it a leader in the industry, and many people are willing to go the extra mile to experience what Tesla has to offer. With the increasing popularity of electric vehicles and Tesla’s expanding range of accessories, likely, the demand for Tesla showrooms and services will only continue to grow.

Nicholas said Connecticut has an ideal market for Tesla because residents have shown a strong interest in electric cars and Connecticut has invested in promoting electric vehicle technology.

Arce, who supported HB 6682 during the last legislative session, said Tesla’s proposal to enter the Connecticut market makes good business sense because the company already buys parts from three manufacturers in Connecticut.

“If it’s safe and it follows the rules and regulations of the state, I will support it,” he said.

But not everyone in Connecticut hopes to see the bill pass.

Licensed automobile dealers have voiced opposition to HB 6682, noting that the bill could create an incentive for other car companies to sell directly to Connecticut consumers, undermining the automobile-dealership business.

Nemerson said automobile dealerships benefit customers by protecting them from faulty products. Since automobile dealerships could go out of business if they sold defective products, they have a strong incentive to band together and only sell the best products car manufacturers produce.

“Dealers are the customers for the companies, and customers are the customers for the dealers,” he said.

Nemerson said Tesla and Connecticut’s automobile dealerships are in conflict because Tesla’s business model disrupts a century-old understanding between car dealers and manufacturers that each provide a separate but complementary service. He said Tesla operates under a new framework that renders a middleman between manufacturer and consumer obsolete.

“It’s a clash of American capitalistic cultures,” he said.

Still, Nicholas said Tesla’s entry to the Connecticut market is unlikely to negatively impact licensed dealerships. He said there has been no evidence of job loss or dealership closure in the other states where Tesla operates. In fact, he said, each new showroom that opens in Connecticut could create up to 25 new jobs and generate $7 million to $10 million for the state economy.

An earlier version of HB 6682 called for five new showrooms. But the Connecticut Automotive Retailers Association and Tesla Motors agreed to reduce this number to three in the revised bill.

Nicholas said he hopes to negotiate the number of showrooms that should open in Connecticut with the General Assembly during the next legislative session. Jim Fleming, president of the Connecticut Automotive Retailers Association, did not respond to requests for comment.

Tesla Motors currently has showrooms in 22 other states as well as Washington, D.C.