Tesla's direct selling and dealership efforts have been threatened by the authorities.
The American electric vehicle manufacturer, Tesla Motors, has received a bad news from the United States of America. Tesla news exclaimed that to the disappointment of Elon Musk and his team, Governor Greg Abbot has stated that he sees no reason to amend the Lone Star State’s automobile selling law that does not let automakers sell cars on their own. It ensures that they do not bypass third party dealerships.
Press sources indicated that Greg’s comments were disclosed in an interview with Bloomberg Radio in which he has appreciated the state’s automobile sector and highlighted the usefulness of car dealers. Tesla news today disclosed that the South African born entrepreneur has been making efforts for years to amend these rules, as his current business model focuses on selling directly to consumers.
Tesla’s most recent effort failed in the Senate, where lawmakers refused to vote in favor of the Senate Bill 683 in May. It is most likely that Mr. Greg’s views would be welcomed by the Texas Automobile Dealership Association, which has tried to maintain the status quo. The automobile pioneer now needs to wait till 2017 to try and amend the state’s automobile selling law. This is not the first time in which legislators would join in Austin to draft and pass bills.
The company believes that the state’s dealership model is unworkable, because it does not produce its automobiles at a massive level, as reported by Tesla Motors news. The organization lets its customers order customized vehicles that it later sells and it cannot rely on independent sellers to champion its technology. Commercial sources highlighted that after failing to amend the law in 2013, the automaker tried again as it not only funded the campaigns of Texas politicians but also doubled its lobbying team.
Tesla has refused to accept its failure. It stated that it educated more legislator and vehicle users and would continue its struggle to enter one of the largest vehicle markets of the country. The company has responded to the Governor’s statement by stating that as a growing enterprise, it is optimistic about the business-friendly position and anticipates that it would be able to sell directly to customers.
Official sources informed that Greg’s position differs from its predecessor‘s, who had stated that selling laws should be reviewed. Those comments were given at a time when Texas was trying to lure Tesla to establish its gigantic lithium ion battery plant. Professionals believe that Tesla’s fans would not welcome the Governor’s views.
The organization should further strengthen its pro direct sales lobby and take steps to appease the authorities; otherwise, it would fail to sell its vehicles directly to the residents of the state and consequently result in loss.
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