Or you know, you could look at what Tesla actually does...
It's a combination of the fact that Teslas require only a minute fraction of the service of a normal internal combustion engine car, and that Tesla already provides better service than any dealership in existence. They have service centres all over the place (who cares if it's in the same place as the store if it's no further away) and you don't even have to go to the service centre because they will either send a mechanic to your doorstep, or pick up the car from your home or office for you (and replace it with a loaner if service will take longer than you can wait)
So why would I want to force their stores (best located in high foot traffic areas like malls) to be co-located with their service centres (best located in low rent areas like industrial parks) when it doesn't do anything to help me as a consumer? The only thing that it would do is either increase costs (paid in the end by the consumer) or decrease convenience (again at the expense of the consumer)
This law doesn't look at what the most advantageous model is for the consumer, it looks at what the existing business model is of the dealerships and forces everyone in to that mould effectively prohibiting any improvement to it.