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Utah House narrowly rejects bill to let manufacturers sell cars directly, after lengthy Tesla-centered debate
Summary
A bill to create a separate "online dealer" license—aimed at allowing manufacturers such as Tesla to sell directly to Utah customers—failed on the House floor after hours of debate over dealer protections, consumer safeguards and grandfathering rules. Vote: 32-41.
Representative Rebecca Coleman opened debate on second substitute House Bill 3 94, proposing a new "online dealer" category to let manufacturers sell vehicles directly to Utah buyers without the traditional franchise middleman.
Coleman said the proposal was designed to balance innovation and existing dealer interests by allowing direct, made-to-order online sales while preserving franchise protections for manufacturers that already have Utah dealers. "We create a new path while maintaining the existing system," Coleman told the House, arguing the change would let Utah residents buy certain electric vehicles locally instead of travelling out of state.
The bill drew extended questioning from colleagues who raised several substantive concerns:…
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