America is a country founded on compromise, and the democratic process appears to be working in the Keystone State. Automotive News reports that he Pennsylvania State Senate has passed legislation that will allow Tesla to open up to five stores in the state, rather than an unlimited number of stores that had the Alliance of Automobile Manufacturers up in arms.
The bill now passes to the Pennsylvania House, where it could be further modified, though this seems like a fair compromise. The AAM as worried Tesla would get an unfair advantage, and seemed ready to argue that they should also be allowed to open an unlimited number of direct sales dealerships. Now the AAM is more supportive of legislation in its current form, though they don’t seem entirely sold on the idea yet.
But now Tesla can open a few stores, and dealerships don’t have to worry about Tesla galleries opening up across from every car lot. This is similar to legislation passed in neighboring Ohio and New York, which limited the number of Tesla stores to three and five, respectively. Tesla of course doesn’t need as many stores because they don’t have massive lots loaded with cars they’re trying to offload. A few stores go a long way, another big advantage for Tesla that must have automakers feeling envious.
It seems like the balance of power is tipping in Tesla’s favor now that automakers are threatening to get into the direct sales game. Is this the beginning of the end of car dealerships as we know them?