Tesla service centers and potentially even stores are coming to Omaha and Kansas City. The questions remain "when" and "where."
The all-electric car manufacturer's website placed a "coming soon" label on the two cities in recent weeks, but a spokesperson for the Elon Musk-led company said she can’t speak to a timeline.
Like all Tesla locations, the service centers in Omaha and KC will be Tesla owned and operated. Sales showrooms also may be in the works, but those plans are still in flux.
Alexis Georgeson, Tesla's spokesperson, said Tesla opens sales and service centers in areas where there is a high density of its Model S vehicles and where it believes there will continue to be a strong market.
Tesla sold 22,500 vehicles in 2013 and is expected to sell around 35,000 this year, according to reports. Bill Moore, an electric vehicle blogger in Omaha, said he's heard through word of mouth from owners that there are 40-50 Tesla vehicles in Nebraska.
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But Tesla's stores aren't your typical car dealership, and that's where it may run afoul of Nebraska law.Â
It skips the idea of the dealership all together, instead opting for small sales rooms, which are usually stark white, modern storefronts in malls. Buyers complete the sale online through its headquarters in California. The stores help educate and engage people on the Model S and Tesla's technology, Georgeson said.
Locations feature touchscreen design studios where visitors can customize a Model S vehicle. A display Model S is also available for visitors to slide into the driver’s seat, and there are test drive vehicles, too.
The stores also serve as a place where owners can pick up the Model S.Â
Tesla wouldn't say where Omaha and Kansas City's locations would be or release any more information since the plans are still in the early stages.
Tesla, like some other in-the-news entrepreneurial ventures — Lyft, Airbnb and others — operates outside the industry norms and sets to disrupt the way its entire industry works.
Its direct sales model has been controversial and is banned in Arizona, Maryland, New Jersey, Texas and Virginia. Other states have put restrictions on how many Tesla stores can operate in the state.
Last month, Missouri's legislature temporarily shelved a bill that would have banned Tesla's direct sales store in St. Louis.
The fight pitted Tesla against the Missouri Auto Dealers Association, which said dealer franchises protect consumers by providing customer service and handling problems like recalls, the St. Louis Post-Dispatch reported.
Because the Missouri legislation never gained traction, a Kansas City store seems to be in the clear.
Not so in Nebraska. A state law on the books since 2000 bans direct sales from the manufacturer.
It's unclear if Nebraska's legislature will do anything about the issue.
Loy Todd, president and general counsel for the Nebraska New Car & Truck Dealers Association, said Nebraska's law is patterned after Texas' stringent laws that allows car sales only through dealerships.
Despite the laws, Tesla still manages to operate stores in Houston and Austin, where it has sold hundreds of cars to Texans, but there are limitations on how the stores and service centers are allowed to operate, Tesla's website states.
Store employees can't tell visitors how much a Model S costs, give test drives or discuss financing, leasing or purchasing options. Customers must order online and then cars are shipped to Texas via a third-party transport company. Tesla employees cannot accompany the vehicle or provide information or guidance on operations until 48 hours after the customer takes delivery.
If Tesla did open a Nebraska store, it would likely have to operate under similar limitations or seek to change the law.
Nebraska's law was implemented last decade when some car manufacturers were looking at direct sales to compete with dealers, Todd said.
"That would be pretty unfair for a franchise dealer to have to compete with the supplier of the motor vehicles, so we outlawed that," Todd said. "The manufacturers at the time weren't shy about indicating they only wanted to have one or two dealerships in the state, so all the smaller towns and cities would be at risk of losing their dealerships. The manufacturers would also have gotten to control prices and those of their competitors since they would be the only source of the product.
"When there is only one source and the manufacturer can set price to public and their competitors, there is a flaw in the system."
Todd said consumers also should be entitled to warranty and regular service by dealerships. Some car companies have gone out of business, but dealers were still around to take care of customers.
The dealers also invest millions in their local economies, Todd said.
"It sounds like Tesla can't legally do what they want to do in Nebraska," Todd said. "They can sell through a franchise dealer and we welcome them to do that. We'd love to have them here. Lots of dealers would love to compete with each other."
As to whether he thinks anything will come up in the Nebraska Legislature, Todd said he wasn't sure.
"Anybody who wants to pursue legislation can do that," he said.
Silicon Prairie News is a news site dedicated to covering Midwest tech startups. Reach Jordan Pascale at jordan@siliconprairienews.com or on Twitter @JWPascale.