Tesla Motors Inc (TSLA): Dealers In N.C. Don’t Like The Online Deal

Tesla Motors Inc (NASDAQ:TSLA), though 10 years old as a company, is still considered a startup as it is has only just in the last quarter made a profit, and it has made just one sedan – the Model S. (Does anyone remember the Roadster? That was the first Tesla model.) But it seems to be because of the recent profitability and the rave reviews of the vehicle has apparently started a wave of at least envy, at worst jealousy by those in the automotive industry.

And in the state of North Carolina, that is being demonstrated by retail dealerships – which seems to be trying to legislate  against consumer choice and the free market.

Tesla Motors Inc (TSLA)Though Tesla Motors Inc (NASDAQ:TSLA) provides a business model that allows for direct sales with customers through the Internet instead of through a dealership, but the North Carolina Automobile Dealers Association (NCADA) has successfully lobbied a bill through a state senate committee, which would ban the direct sale of automobiles in the state – which would mean that anyone in North Carolina would be prohibited from ordering a Tesla without it being sold at a dealership.

Image: Tesla Motors Inc (NASDAQ:TSLA)

No more delivery to the front door. Tesla did send representatives to the committee hearing to present the case for an open car-sales market in North Carolina, but the committee passed the bill onto the full Senate with a unanimous vote.

“We care about the franchise system,” said Robert Glaser, NCADA president. “The whole point of the retail system is to protect the consumer.” This argument is not meant to be against Tesla Motors Inc (NASDAQ:TSLA) specifically, the organization claims, but it is meant to protect the more than 7,000 dealerships in the state, the employees and others who are stakeholders to the success of that sector of the economy.

“They’re trying to insulate the dealer franchise model from any competition,” said Tesla vice president Diarmuid O’Connell, who gave a presentation to the committee before the vote. “It’s a protectionist move to lock down the market so we have to go through the middleman – the dealer – to sell our cars.”

What are your thoughts about this? Should this become law? Do you agree with the argument that a dealership protects the consumer? Can this set a precedent across the country against companies like Tesla Motors Inc (NASDAQ:TSLA) and their direct-sales approach? Let us know your thoughts about this in the comments section below.

DISCLOSURE: None

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!