Tesla (TSLA) Sued in Virginia Over Plans to Open Second Showroom

Tesla (Nasdaq: TSLA) is having to deal with more legal issues as it looks to expand its showroom network.

Reuters pointed out late Wednesday that the Virginia Automobile Dealers Association (VADA) filed a suit against Tesla to prevent the company from opening a second showroom in the state.

The VADA suit claims that Tesla and Virginia DMV commissioner Richard Holcomb are violating an agreement reached in 2013, which said that Tesla couldn't consider owning and operating a second dealership in Virginia until at least August 2017.

One VADA official said Tesla and the VDMV tried to keep VADA in the dark about the move. There is a hearing on the matter scheduled for March 31st.

Shares of Tesla are up modestly in early trading.

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