The fact that Tesla Motors Inc (NASDAQ:TSLA) is battling to sell its cars in many states is no surprise at this point. We have followed this story since the beginning, and recently updated you on the latest in New York. While there is a lot going on at the state level, there is reason to believe the company may have to take things up a notch.
Automotive News recently took a closer look at this story, stating “with the 2013 legislative season drawing to a close in many states, Tesla Motors is keeping its options for a federal challenge open after mixed results this year in its rift with dealers over its direct-selling model.”
As you can see, Tesla Motors Inc (NASDAQ:TSLA) may have no choice but to opt for a federal challenge as it is not making nearly as much progress as it would like on a state level.
Diarmuid O’Connell, Tesla vice president of business development shared some information on where the company stands right now and what it is hoping to accomplish in the months and years to come.
For the time being, Tesla is going to spend the next month reevaluating its situation as a means of determining how to tackle this problem over the next 18 months.
O’Connell added the following when speaking with Automotive News:
“As much as I’m enjoying seeing the country, I think more and more we’re going to have to consider a single solution from the center. Whether that’s legislative or legal, I can’t say. The path will reveal itself in time.”
O’Connell has been spending a lot of time moving from one “battle ground” state to the next, hoping to come out on top as Tesla continues its fight against dealerships.
With dealers continuing to contest Tesla owned dealerships, the struggle is just now beginning. This is why the company may have to take its fight federal, as opposed to in an attempt to win in each and every state.
Tesla Motors Inc (NASDAQ:TSLA) is hoping to sell its vehicles direct to consumers through its own network of dealerships, however, there are laws in many states holding the company back from doing so. Many dealers feel that the company needs to abide by the law, forcing it to use the franchise system in place.
The next 12 to 18 months will be crucial to the long term future of Tesla Motors Inc (NASDAQ:TSLA). Are we in for a federal fight?