Tesla Motors will be allowed to open five retail stores

While Tesla Motors is continuing its fight to sell directly to customers in the states of Arizona, Maryland, New Jersey, Texas, and Virginia, the company has won an important battle in the state of Pennsylvania. Thanks to legislation signed by Gov. Tom Corbett (R), Tesla will be allowed to open up to five retail stores in the state to sell directly to customers.
State Sen. John Rafferty (R) sponsored the bill, which doesn’t name Tesla specifically and covers all electric car manufacturers.
"This was a means to provide the consumer with another option and it would be a positive addition to the marketplace in Pennsylvania as a result of providing that option," said Nathan Spade, a senior aid for Rafferty.
The legislation passed with the [surprising] backing from the Pennsylvania Automotive Association (PAA). The PAA supported the exception for electric car manufacturers even as dealership associations in nearby New Jersey are staunchly against giving Tesla Motors “special treatment.”

"The advocates of the Tesla exemption seem to confuse very different public-policy agendas,” Jim Appleton, President of the New Jersey Coalition of Automotive Retailers. “One is consumer choice; the other is consumer protection."
The National Auto Dealers Association (NADA) has also come out staunchly against the direct sales model, even going so far as to create a special section of its website to defend the dealership model, while at the same time attacking Tesla’s approach.
“Franchised new-car dealers provide the best, most efficient and most cost-effective way to sell and distribute new cars in America, and we’re proud of our businesses and business model,” said NADA President Peter Welch back in June. “Franchised new-car dealers benefit consumers through price competition, accountability on warranty and safety recall issues, and provide enormous economic benefits to local communities across the country.”

Tesla is gearing up for a big increase in production over the next few years, and is nearing a decision on a site for its Gigafactory battery production facility that it will operate in conjunction with Panasonic. The company plans to launch its Model X crossover next year, which will offer AWD courtesy of front- and rear-mounted electric motors.
Later this decade, Tesla will launch the Model III, which will become the company’s entry-level all-electric sedan which will do battle with the BMW 3-Series, Audi A4, and Mercedes C-Class. The vehicle is expected to be priced in the below $40,000 and will offer a range of at least 200 miles.


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