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Tesla Dealers about to be outlawed in Ohio


Gergwheel1647545492

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Yup, this has been going on for awhile. The Tesla founder is (rightfully) arguing against state legislated local dealer laws, that require all new vehicle sales to go through dealerships (third party) than being sold directly from manufacturer to the consumer. They say this "protects" the customer from unequal pricing, etc... However Tesla is making the strong and realistic argument that the actual practice is dealerships add mark-up and are adding cost to the vehicle, including maintenance and parts agreements, etc.. that he wants to avoid.

 

Here are a couple articles on the matter:

 

http://www.msnbc.com/the-last-word/tesla-vs-the-auto-dealers-america

 

http://www.mercurynews.com/business/ci_24612314/tesla-faces-uphill-fight-against-dealers-lawmakers

 

http://www.popsci.com/cars/article/2013-09/how-car-lobbyists-shut-tesla-motors-business-model-out-texas

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Nothing but another play by the .gov to line their pockets with lobby money and tax dollars to waste all on the back of a business. Using the classic "we need to protect people" crap line as well.

 

There is a Watchmen lesson in here somewhere...

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Yup, this has been going on for awhile. The Tesla founder is (rightfully) arguing against state legislated local dealer laws, that require all new vehicle sales to go through dealerships (third party) than being sold directly from manufacturer to the consumer. They say this "protects" the customer from unequal pricing, etc... However Tesla is making the strong and realistic argument that the actual practice is dealerships add mark-up and are adding cost to the vehicle, including maintenance and parts agreements, etc.. that he wants to avoid.

 

Here are a couple articles on the matter:

 

http://www.msnbc.com/the-last-word/tesla-vs-the-auto-dealers-america

 

http://www.mercurynews.com/business/ci_24612314/tesla-faces-uphill-fight-against-dealers-lawmakers

 

http://www.popsci.com/cars/article/2013-09/how-car-lobbyists-shut-tesla-motors-business-model-out-texas

 

There is no reason to prohibit direct sales.

There is room for both models today, especially with Tesla being a one of 1.

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I think it's a stupid law, no question.

 

Elon Musk is equally stupid though. He is going to kill his company fighting a losing battle. He should have just sold franchises and been done with it.

 

When the dust settles, someone else is going to come to market with the same thing at a lower price point (technology gets cheaper) with the backing of a dealership network.

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I don't see the problem, if they want to sell direct then let them. They are cutting out the middleman and the increased profits and games run by most dealers.

 

If I had a nickle for every time someone gave up on a brand because of DEALER actions, I'd probably be a billionaire. There are just to many dealers that are complete crooks and Tesla is trying to prevent that!

 

It also puts them solely responsible if there is a problem so it's a chance for them to shine or absolutely FAIL...and if they are willing to take that risk then let them..

 

When it comes down to it, he should just let the states that don't want it go and strengthen the states that welcome his business model since the cars have no problem selling themselves. People will travel to purchase if the product is good enough.

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I live in the neighborhood across from the store at "easton". Just saw the sign lit up about a week ago when i turned off my street on the way out.

 

yea the existing dealers are fine, but they can't build anymore new ones. At least that is the way i read it.

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If I stop in Sunday for a test drive how will i know what product you have there that they are selling?

 

Umm, just guess. Lol.

 

Scott, better run a credit check on Gregory and make sure he can even afford tires for it before letting him go on a test drive :gabe:

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