Elon Musk is on a very-public crusade to challenge the established car dealership lobby, and while he has had some success at the state level he has also lost in one of America’s largest car markets; Texas. A recent report highlights just how many hoops you have to jump through if you want to buy a Tesla Model S in the Lone Star State.
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Auto dealerships have been longstanding powerhouses in state capitals across the nation, but the tides may be turning thanks to Tesla. But the progress to establish company-owned Tesla stores may not be going fast for Elon Musk, who is considering a national-level debate about how “free” the free-market for cars really is.
The fireworks have faded and the beer cans are being cleaned up after another Independance Day in America. For Tesla Motors July 4th was especially liberating, with the petition to allow the electric automaker to sell its cars directly to consumers crossing the important 100,000 signature mark. Now the ball is in Obama’s court; will the administration respond?
North Carolina and New Hampshire have taken Tesla’s side, allowing the company to open showrooms and sell cars to customers without franchised dealerships.
A petition was started on the Whitehouse.gov website to allow Tesla Motors to sell their own cars directly to their customers in all 50 states of America. If you think Tesla should be able to sell its cars directly to customers, you should sign this petition.
You would think that states would welcome a new car company and the jobs it brings with open arms. But well-established car dealership lobbying groups have been fighting to keep Tesla’s direct sales model out of their states, including Texas. But one former Texas car dealer took to the pages of his local newspaper to argue that Tesla should be allowed to sell their cars directly to customers.
So far Tesla has won lawsuits in several states giving it the right to sell its cars directly to customers, and it is pursuing the cause in other states as well. But Virginia recently slapped down Tesla’s attempt to sell its electric Model S directly to customers. Can Tesla overcome this setback?
A group of automobile dealers represented by the Minnesota Automobile Dealers Association tried to block Tesla Motors from opening dealerships, and lost.
Innovation often has many detractors, and Tesla Motors has had plenty of detractors. But at least for now, Tesla has scored a key victory in the state of Massachusetts. A Bay State judge has dismissed a request by a dealership association to close a Tesla Motors “dealership” in the city of Boston.
It recently came to light that Tesla Motors was coming under fire for opening several company-owned dealerships in areas like Boston and New York City. This has traditional franchise dealership associations up in arms, with lawsuits flying Tesla’s way. Elon Musk, chairman and CEO of the electric automaker, has taken to his blog to explain why Tesla Motors must sell cars differently.
I think it is safe to say that without government money, Tesla Motors would probably not exist today. And the grants just keep coming, as news came out late last week that the state of California granted Elon Musk’s electric car company a new $10 million grant to develop the upcoming Tesla Model X SUV in the Golden State.