The lobbying effort around HB 7097, a bill in Connecticut that would enable Tesla to sell its vehicles directly to consumers without having to go through third-party dealerships, has intensified this week.
Tesla has now promised the state 10 stores by next year if the bill passes, while on the other hand, the dealerships warn of losing 10% of their 14,000 jobs in Connecticut. expand full story
Tesla’s long ongoing state-by-state battle to sell its electric cars directly to consumers without having to go through third-party dealers just received a significant setback. In Missouri, where Tesla already managed to get a dealer license and has been selling its vehicles online and through stores in St-Louis and Kansas City, a judge rejected the company’s license renewal after the Missouri Auto Dealers Association (MADA) sued the revenue department, which first issued Tesla’s license in 2015.
In consequence, the automaker will lose its right to sell cars in the state tomorrow as its current license expires.
Previously, Tesla mainly had to worry about states where laws are currently preventing them from getting dealership licenses, like Michigan or Texas, but now it looks like Tesla’s direct to consumer business model is not safe even where it already had a license. expand full story
For most of the world, it’s simply difficult to imagine that in some states in the US, Tesla is not allowed to sell its vehicles directly to customers because of laws banning automakers from operating dealerships – even automakers that have never been part of the third-party franchise dealership model before.
But I think this video of Don Hall, president of the Virginia Automobile Dealers Association (VADA), will help people understand what Tesla is up against in those states. A video of Hall addressing the members of his dealership association following Tesla’s request for a dealership license is a great example of the mentality of the car dealership when it comes to their monopoly on selling vehicles. expand full story
The automaker built a $3 million store in Salt Lake City last year, but the full-fledged store was demoted to a gallery/service center two weeks before opening due to the Utah attorney general’s office ruling that it was against the state’s direct sales law following complaints from the local dealership association.
Now that the case is before the court, in order to counter the automaker’s argument that they are not good at selling electric vehicles, dealerships are saying that they could sell Tesla’s vehicles simply because “they have four wheels”. expand full story
Now we learn that the DMC ruled against Tesla obtaining a second dealership license last week, which results in the automaker’s latest store in Charlotte having to operate as a ‘gallery’. expand full story
During a convention held in Dallas last week, Texas state GOP delegates endorsed new Tesla-backed language in the party platform to allow direct sales of vehicles in the state. About 90 percent of the more than 8,000 delegates supported the new proposal.
This new support is likely to be a big help for Tesla’s next effort to push new legislation in order to sell its cars through company-owned stores in Texas – something the company has been trying to do since 2013.
Tesla had a booth at the convention and discussed its situation in the state with thousands of delegates.
Under the current state’s laws governing car sales, as an automaker, Tesla cannot sell its vehicles to consumers and is required to go through third-party dealerships – something the company refused to do as per its business model. expand full story
The North Carolina Department of Transportation (NCDOT) is currently holding a hearing to decide whether or not to allow Tesla to get a second dealership license to operate in the state without having to go through a third-party franchise dealerships.
Tesla currently operates a store and service center in Charlotte and a service center in Raleigh. The automaker is now trying to get a second sales license since having won a legislative battle that successfully stopped a bill from outright banning direct car sales in the state back in 2013. expand full story
While the bill SB3, a new legislation to allow electric automakers to sell directly to consumers in Connecticut, appeared to have died during the weekend after bill sponsor Bob Duff said that his caucus was divided on the issue and that he didn’t have the votes:
“I think the car dealers and others have been very effective in lobbying in their favor. We’ll come back again and try in another year.”
Now in a last-ditch effort as the legislative deadline approaches on Wednesday night, Tesla offered the state a new distribution center with 150 jobs to sweeten the deal. expand full story
For the second year in a row, Tesla tried to pass a bill sponsored by Senate Majority Leader Bob Duff, D-Norwalk in Connecticut, to allow the sale of electric vehicles directly to consumers without having to go through the franchise dealerships model. Last week, the bill SB3 was in consideration and awaiting a vote in the state Senate, but it is now officially dead following an impressive lobbying campaign led by GM and the local dealership association.
The electric automaker is currently entrenched in several battles over its business model of selling directly to consumers without a third-party dealership. While it is not an issue in most of its markets, Tesla is not allowed or under restrictions to sell its cars in several states including Arizona, Michigan, Texas, Connecticut, Utah and West Virginia. expand full story
Tesla is currently facing strong opposition from the dealership lobby in Connecticut over a new legislation that would allow the automaker to sell directly to consumers in the state. The bill SB3 is currently in consideration and awaiting a vote in the state Senate. It would enable Tesla to open up to 3 stores in the state.
This week Tesla published the results of a survey showing strong support for its direct sales business model in the state, but the Connecticut Automotive Retailers Association is challenging the relevance of the survey. expand full story
According to a new report from the Wall Street Journal (paywall), Tesla’s legal team has been preparing for a challenge of direct sales law before the federal court instead of the state by state battles that the company has been fighting for years now.
Due to its business model of selling directly to consumers without a third-party dealership, Tesla is currently not allowed or under restrictions to sell its cars in several states including Arizona, Michigan, Texas, Connecticut, Utah and West Virginia. expand full story
A bill proposed by Senate Majority Leader Bob Duff to allow electric vehicle makers in Connecticut to bypass direct sales laws and sell directly to consumers, also called the “Tesla bill”, has been “overwhelmingly endorsed” by the transportation committee on Monday. The legislation will now be moving to the state senate for a vote. expand full story
After a small win in Indiana, where a state Senate committee decided to table for further review a bill that would have prohibited Tesla to sell its cars directly to consumers and forced them to go through third-party auto dealerships, the automaker is readying to challenge the states of Utah and Connecticut over similar direct sale laws.
Connecticut Senate Majority Leader Bob Duff introduced a bill that would allow electric car manufacturers to sell their vehicles directly to Connecticut consumers. The bill would represent a compromise similar to agreements Tesla has in other states like New Jersey or New York, where the automaker is limited to a certain number of stores, in the case of Connecticut, it would be three stores across the state. expand full story