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Print 60 comment(s) - last by LRonaldHubbs.. on Jun 27 at 1:19 PM

Auto dealers are backing the bills in an attempt to uphold current sales models

Tesla Motors may see its stores banned in New York thanks to a pair of bills that look to protect auto dealers. 

Tesla has its own “Tesla Stores”, which act as showrooms for customers. There, they can see the models and even test drive them before making a purchase online from the Tesla website. Tesla does this as opposed to selling its vehicles to auto dealerships

But a new pair of bills, referred to as A07844 in the Assembly and S05725, may put an end to that in the state of New York. The bills would make it illegal to license -- or even renew licenses -- for all Tesla Stores within New York state borders.

In addition to a ban on renewing licenses for existing Tesla sites, the bills also make it illegal to license any future stores; amends New York's vehicle and traffic laws regarding "unfair practices by franchisors," and prevents New York from issuing/renewing the registration of any car dealer where a manufacturer holds a controlling interest (unless that certificate was issued before July 1, 2006).

The bills were submitted just before the New York Legislature adjourned for the summer. This means that they will sit in the New York State Assembly until January 2014 when it returns. No decisions were made regarding the bills before it adjourned.


As you can probably guess, Tesla isn't too happy about this. The electric automaker issued a statement last week regarding the bills:

The bottom line for New York consumers and New York suppliers is that if this bill passes, special interests in Albany will once again have gotten their way while robbing New Yorkers of choices in the marketplace, and Tesla will be put out of business in New York. The result would be that all of Tesla’s New York employees will lose their jobs.  It means that New York-based suppliers to Tesla will lose business and New York consumers cannot buy the most advanced electric car in the world today. Banning Tesla from selling its vehicles is also a step in the wrong direction for reducing carbon vehicle emissions and the green environmental movement in New York.  With the State of New York pushing so hard to lead green innovation supporting entire agencies for energy efficiency like NYSERDA, it is absolutely defies logic to ban Tesla from selling electric cars in New York.

From the beginning, Tesla’s goal has been to catalyze the market for electric vehicles and selling through intermediaries at this stage of the company will not work.  For Auto Dealer Associations to claim that restricting competition is in the best interests of the public is wrong and defies obvious common sense.  If we are kept out of New York, it forestalls progress and defeats innovation.

Tesla has created jobs in New York at both its stores and service centers and the sales of its vehicles go into supporting the local economy. Tesla remains committed to bringing electric vehicle technology and its customer focused sales and ownership experience to New York consumers, while complying with all local and state laws.

Back in April of this year, Tesla CEO Elon Musk openly fought for a Texas bill that would cut out the use of auto dealerships. The bill -- House Bill 3351 -- would allow distributors and manufacturers of electric vehicles (EVs) only to sell directly to customers without the use of dealerships. The bill was filed by Rep. Eddie Rodriguez (D-Austin). 

Musk even said that if the fight for the Texas bill came down to a federal matter, he would either lobby Congress to pass legislation for the direct sales of EVs made by startup companies like Tesla (and tie it to an energy or transportation bill) or file a federal lawsuit to fight the state restrictions as unconstitutional violations of interstate commerce.

Musk is open to a dealership model at some point when sales increase, since dealerships do promote competition and keep prices down. 

Source: Green Car Reports



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RE: Unbelievable
By Motoman on 6/24/2013 11:56:09 AM , Rating: 3
It's a horrible abuse of the market. Pure political BS. There is *no* benefit to the consumer by requiring car sales go through a 3rd party intermediary between the manufacturer and the consumer. If there was, it would be required for all goods - not just cars.

Nothing but good-old-boyism and the corruption that is lobbying.

Outlaw lobbying. Let Tesla sell their cars however they want. And stop being d-bags in general.


RE: Unbelievable
By Shig on 6/24/2013 4:49:14 PM , Rating: 2
Everyone shouldn't really worry. Tesla Motors has fans that are similar to Apple's fans. Except when Tesla fans say the model S is *multiple* times better than the next closest competitor (EV tech wise), it's not an exaggeration.

If anything this will only make cars sell faster in NY, the state will say you can't buy it, and if you already wanted the car you're going to get it some how anyways. Remember most people buying the Model S atm know what they're doing with finance and laws of this nature or they have friends that do.

Plus the fact that this is an issue in such a big state means this will probably end up in the supreme court, which was inevitable.


RE: Unbelievable
By Shig on 6/24/2013 4:50:17 PM , Rating: 2
As an added tid bit, Tesla Motors is now worth more than Fiat (lol)


RE: Unbelievable
By Mr Perfect on 6/24/2013 7:20:22 PM , Rating: 2
I'd actually love to see the current car purchasing model change, the dealers and sales people are generally snakes.


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