Tesla has a unique model in the automotive market. They sell cars through their own dealership franchises. Dealerships hate this & want to ban this in the New York.
In fact car dealerships in the new York State are so peeved off with Tesla that they are backing a US Bill that would make it illegal to register the cars there. Two bills in the US assembly are being backed by the state car dealerships. The bills require that a car manufacturer cannot sell its cars directly (like Tesla do now) aand that that cars can only be sold and registered when sold by a third party i.e. dealerships and private sellers.
Greencarreports.com broke this story and sum it up in more detail below:
Well, this is a new tactic we haven’t seen before in the fight between franchised auto dealers and Tesla Motors, the Silicon Valley electric-car startup.
A pair of bills in the New York State Legislature, backed by New York state autodealers, would make it illegal to register Tesla cars within the state.
The bills, now pending in the last days before the Legislature adjourns for the summer, would make it impossible for the state to register any vehicle not purchased from an independently-owned third party.
Which is to say, a car dealer.
Only one qualifies
The only manufacturer that now sells cars directly to consumers, rather than through franchised dealers, is Tesla Motors [NSDQ:TSLA].
Rather than selling to dealers, who then sell to consumers, the company operates Tesla Stores–showrooms, essentially–where customers can ask questions and take test drives before buying their car online from Tesla itself at a set price.
And it prohibits the state from issuing or renewing the registration of any car dealer in which a carmaker holds a controlling interest–unless that certificate was issued before July 1, 2006.
In other words, the bill has been narrowly crafted to prohibit renewal only of Tesla’s stores. The bill does appear to allow temporary registration of such stores for no longer than one year.
It also appears to make it illegal for the state to register new Tesla vehicles not sold by franchised dealers–which, of course, Tesla doesn’t have.
As you can guess Tesla front man Elon Musk didn’t react kindly to this news. Take a look at his tweets below:
What do you think carhooters? Can car dealers get away with this? How do you think Tesla will react?
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