New Mexico law prohibits car manufacturers from selling directly to customers without going through third-party dealers.Insurance Loans Mortgage Attorney Credit Lawyer
The rules, which exist in a few other US states, are meant to protect dealers from their own automakers opening a company-owned store next to a third-party dealership.
Tesla CEO Elon Musk exploited a loophole to avoid following New Mexico laws while setting up a sales and service center with one of the tribal nations in the state
However, electric carmakers like Tesla have no history of deals with third-party franchises.
The law has kept the electric carmaker from doing official business in the state for years.
In 2019, Tesla tried to push a new law in the state with the help of some favorable legislators, but local car dealer associations used their political influence to shut it down, according to Electrek.