Beta

Slashdot: News for Nerds

×

Welcome to the Slashdot Beta site -- learn more here. Use the link in the footer or click here to return to the Classic version of Slashdot.

Thank you!

Before you choose to head back to the Classic look of the site, we'd appreciate it if you share your thoughts on the Beta; your feedback is what drives our ongoing development.

Beta is different and we value you taking the time to try it out. Please take a look at the changes we've made in Beta and  learn more about it. Thanks for reading, and for making the site better!

North Carolina May Ban Tesla Sales To Prevent "Unfair Competition"

nametaken (610866) writes | about a year ago

7

nametaken (610866) writes "From the state that brought you the nation’s first ban on climate science comes another legislative gem: a bill that would prohibit automakers from selling their cars in the state.

The proposal, which the Raleigh News & Observer reports was unanimously approved by the state’s Senate Commerce Committee on Thursday, would apply to all car manufacturers, but the intended target is clear. It’s aimed at Tesla, the only U.S. automaker whose business model relies on selling cars directly to consumers, rather than through a network of third-party dealerships.

[The article adds] it’s easy to understand why some car dealers might feel a little threatened: Tesla’s Model S outsold the Mercedes S-Class, BMW 7 Series, and Audi A8 last quarter without any help from them. If its business model were to catch on, consumers might find that they don’t need the middle-men as much as they thought."

Link to Original Source

cancel ×

7 comments

It's the usual cronyism at work (1)

A nonymous Coward (7548) | about a year ago | (#43721027)

I believe every single state requires that cars be sold through dealers, not direct by manufacturers. If not all, at least most of them.

Re:It's the usual cronyism at work (1)

macpacheco (1764378) | about a year ago | (#43724545)

Totally wrong !
In many states there is no such issue (California), and on some that used to have such a law, the law in question was thrown out (Texas).
The basic idea should be that once a car company decides to sell through a dealership network, it can't bypass them, it would be unfair competition, however Tesla has no dealership network, and intends to sell only directly to consumers in the US, so it shouldn't be forced to sell through dealerships just because the dealerships want it to. Tesla cars are already expensive enough, add 20% dealer margins and they would be that much harder to sell (US$ 120k instead of US$ 100k for a top Model S give or take).
The main issue there is the dealership associations throwing 100% of their weight to try to bend Tesla do work their way, but with a production backlog that will take at least 6 months to fulfill, Tesla hardly needs more sales channels.

Re:It's the usual cronyism at work (1)

macpacheco (1764378) | about a year ago | (#43724583)

It's funny to see the heavily republican states (except for Texas) one by one giving Tesla a hard time, where's the market freedom and low regulation you preach so much ? How about putting your money where your mouth is ?
The fact is the GOP is actually more corrupt than the Democrats.

Re:It's the usual cronyism at work (1)

A nonymous Coward (7548) | about a year ago | (#43725647)

Good grief. If you think you can see different levels of corruption in the political parties, you are part f the corruption.

I give Occupy Wall Street A for recognizing Wall Street corruption, F for thinking that the government actually would want to do something about it. You sound about as politically competent.

Re:It's the usual cronyism at work (1)

macpacheco (1764378) | about a year ago | (#43728623)

Correction, Tesla today can sell cars online into Texas (from California), but still can't open their Tesla showrooms that showcase the car and works towards convincing more customers to put a deposit to get in line to get the beautiful Tesla Model S.

North Carolina is trying to prevent Tesla from doing both !

Re:It's the usual cronyism at work (1)

A nonymous Coward (7548) | about a year ago | (#43725669)

Do you have any reliable source of data for this? I have never paid much attention to it, since I don't sell cars, and my last info was years ago. I suppose things can change over a long enough period.

Check for New Comments
Slashdot Account

Need an Account?

Forgot your password?

Don't worry, we never post anything without your permission.

Submission Text Formatting Tips

We support a small subset of HTML, namely these tags:

  • b
  • i
  • p
  • br
  • a
  • ol
  • ul
  • li
  • dl
  • dt
  • dd
  • em
  • strong
  • tt
  • blockquote
  • div
  • quote
  • ecode

"ecode" can be used for code snippets, for example:

<ecode>    while(1) { do_something(); } </ecode>
Create a Slashdot Account

Loading...