Tesla’s direct-sale bill is shelved in North Carolina

[Amica Nostra 4,803]

https://electrek.co/2017/06/23/tesla-direct-sale-bill-north-carolina/

 

Things are not improving on the direct-sale front for Tesla. After recent setbacks in Texas and Connecticut, now a new bill introduced this week in North Carolina has been shelved for the current legislative session. 

 

 

 

Fred Lambert 

- Jun. 23rd 2017 4:06 pm ET 

 

@FredericLambert

 

 

36 Comments 

 

Things are not improving on the direct-sale front for Tesla. After recent setbacks in Texas and Connecticut, now a new bill introduced this week in North Carolina has been shelved for the current legislative session. 

 

We reported earlier this week that Tesla was facing opposition from other automakers trying to stop them from selling their vehicles directly to customers in North Carolina after the company had pushed a new bill in the Senate that would open the door for them to obtain more dealership licenses.

Last year, Tesla was denied a new dealer license by North Carolina’s DMVwhen local car dealerships evoked the state’s ban on car sales by manufacturers.

They had since negotiated a compromise with them to allow 6 more licenses for Tesla to expand in the state – something that is somewhat urgent with the imminent launch of the Model 3.

But now not dealers but automakers opposed the bill and the legislature stopped the process.

Sen. Trudy Wade, R-Guilford, who co-chairs the Senate Committee on Commerce and Insurance, didn’t like where it was going. She told WRAL:

“I think it was moving a little fast.”

 

The company has not been shy to go to court when the legislature fails since it sees the issue of blocking their business model as violating commerce laws

 

Edited June 24, 2017 by ccneat

[Dashinka 24,505]

It will be interesting to see if the direct sale method will keep working as Tesla grows.  With the Model 3 launch and a whole new class of buyers that may or may not have a second vehicle, Tesla may need to set up more maintenance facilities to cater to them.

 

Time will tell.

[IAMX 3,055]

This is without a doubt violating commerce laws.

 

I guess a middle of the road question is, can Tesla operate in those states without subsidies and special treatment?

 

There is absolutely no reason in the realm of logic to deny them the ability to sell their cars and acquire dealership licenses. I can see some things haven't changed since the 90s. This archaic industry and trying to stifle innovation is a massive detriment to economic progress.

[spookyturtle 9,465]

4 hours ago, Bill & Katya said:

It will be interesting to see if the direct sale method will keep working as Tesla grows.  With the Model 3 launch and a whole new class of buyers that may or may not have a second vehicle, Tesla may need to set up more maintenance facilities to cater to them.

 

Time will tell.

If they start selling large numbers of cars, they're bound to need more service facilities. It's still early, and as you said, time will tell. 

[jg121783 3,915]

My question is why does Tesla think they don't have to play by the same rules as other auto manufacturers? If you are going to change the rules do it for everyone not just Tesla.

[Amica Nostra 4,803]

3 hours ago, jg121783 said:

My question is why does Tesla think they don't have to play by the same rules as other auto manufacturers? If you are going to change the rules do it for everyone not just Tesla.

Are you looking for "Because they are leftists?"

[OriZ 3,157]

8 hours ago, IAMX said:

This is without a doubt violating commerce laws.

 

I guess a middle of the road question is, can Tesla operate in those states without subsidies and special treatment?

 

There is absolutely no reason in the realm of logic to deny them the ability to sell their cars and acquire dealership licenses. I can see some things haven't changed since the 90s. This archaic industry and trying to stifle innovation is a massive detriment to economic progress.

None of his companies would ever make it without being heavily subsidized by the Federal Government and without borrowing from one another. Dude is a master at robbing peter to pay paul.

Edited June 25, 2017 by OriZ

[spookyturtle 9,465]

1 hour ago, OriZ said:

None of his companies would ever make it without being heavily subsidized by the Federal Government and without borrowing from one another. Dude is a master at robbing peter to pay paul.

That's better than Trump robbing Peter and keeping the money himself. 

[Dashinka 24,505]

2 hours ago, ccneat said:

Are you looking for "Because they are leftists?"

In this case, it think it is Tesla trying to apply a consumer electronic model to automobiles.  As I said earlier, time will tell if this will work for them as they grow.  I think if you looked back to the dawn of the automobile industry, many manufacturers sold directly to the consumer.  Of course this changed over time, and it is arguable that it is a good model for a consumer product as complex as an automobile especially when dealing with high volumes and multiple models.

[Amica Nostra 4,803]

1 hour ago, Bill & Katya said:

In this case, it think it is Tesla trying to apply a consumer electronic model to automobiles.  As I said earlier, time will tell if this will work for them as they grow.  I think if you looked back to the dawn of the automobile industry, many manufacturers sold directly to the consumer.  Of course this changed over time, and it is arguable that it is a good model for a consumer product as complex as an automobile especially when dealing with high volumes and multiple models.

In my view ,Those are 20th century constructs that died in the 2007 crisis. As expected  government regs are trailing the inovators and disruptors. It doesnt matter if Tesla has a market cap > Ford. The consumer and the environment have won by proving innovation is inevitable inspite of the establishment 

Edited June 25, 2017 by ccneat

[OriZ 3,157]

3 hours ago, spookyturtle said:

That's better than Trump robbing Peter and keeping the money himself. 

Can we have one thread without Trump? 

[TBoneTX 45,299]

Would like to hear what NB thinks about all this.

Manufacturer-to-consumer sales would mean no chance for salesmen to earn commissions, but it also would mean no insufferable sales managers with whom customers (and the salesmen) would otherwise have to deal.

[The Nature Boy 7,659]

3 hours ago, spookyturtle said:

That's better than Trump robbing Peter and keeping the money himself. 

TDS is everywhere 

[The Nature Boy 7,659]

36 minutes ago, TBoneTX said:

Would like to hear what NB thinks about all this.

Manufacturer-to-consumer sales would mean no chance for salesmen to earn commissions, but it also would mean no insufferable sales managers with whom customers (and the salesmen) would otherwise have to deal.

I don't see how it is legal to stop a company from selling a product , however they wish. It's almost like when the govt , heavily regulated the phone companies. 

They would still have to have people to demo the product and deliver it. I think it would just cut our the middleman. 

 

Here in the Southeast,  all Toyota dealers get their cars from Southeast Toyota,  not Toyota itself, so their are two middlemen. 

 

Sales managers.  Amazing Animals .pure ego driven primates,  who are grossly over paid. A good computer program could do what they do.

[TBoneTX 45,299]

4 minutes ago, Nature Boy Flair said:

Sales managers.  Amazing Animals .pure ego driven primates,  who are grossly over paid. A good computer program could do what they do.

Now tell us how you REALLY feel.

(Uh, no... TOS and all that...)