The dealership lobby in New York is trying to have Tesla showrooms shut down because the company sells its cars directly.

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When it comes to marketing and selling its automobiles, Tesla is quite unique. The company does not rely on any third-party car dealerships and sells its cars directly through its own showrooms. Since that hurt automobile dealers, the lobby is backing bills which would ban such sales in New York.


Tesla

Naturally, the automobile dealers are simply trying to influence the law-makers because their profits are in question. Tesla manufactures the cars and then sells them, which is perfectly legal in every way. But since Tesla doesn’t feed third-party, independent car dealers, they’re pissed.

And they’re now backing two bills currently on tablet in the New York Assembly. If the bills are passed, they would prohibit any car manufacturer from selling vehicles without a third-party dealership.

Apparently, the only thing that is stopping the Assembly from shamelessly relenting to the pressure of the dealership lobby is the Senate. According to Tesla CEO, Elon Musk, “NY Assembly passing bill to shut down Tesla, but Senate holding the line. Appreciate senators resisting influence of auto dealer lobby.”

The car dealerships essentially want Tesla to outsource the sales of its cars, so that they can offer prices of their own liking on the Tesla vehicles and make profits out of them. It is highly unfortunate that NY lawmakers see this as a valid excuse to launch highly biased bills which directly target Tesla.

Courtesy: Digital Trends

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  On June 24, 2013(1 year, 7 months ago.)

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