Tesla Car Dealers: As of late, Tesla Motors Inc (NASDAQ:TSLA) has been making major waves throughout the automotive industry. Most importantly for the company, sales are moving in the right direction. Along with this, CEO Elon Musk is pushing to bring its vehicles to additional states throughout the country.
Now, according to a report by The Wall Street Journal, along with Musk’s official Twitter account, Tesla says “it’s won another round in its fight with established car dealers who want to stop the company from selling its electric luxury cars directly to consumers.”
Here is what Tesla Motors Inc (NASDAQ:TSLA)’s Musk had to say via Twitter:
“New York judge just ruled in favor Tesla, dismissing the legal attack by auto dealers to prevent direct sales!”
“New York judge states: “… dealers cannot utilize the Franchised Dealer Act as a means to sue their competitors”. Exactly!”
As you can see from the emotion in his messages, this is a huge win for Tesla Motors Inc (NASDAQ:TSLA).
As noted above, Musk has been looking to bring the company to new markets. Earlier this week, he was in Texas “making the case for a legislative proposal to change the law to allow direct sales of electric vehicles by U.S. based manufacturers.”
Despite the fact that car dealers in the Lone Star state are fighting back, Tesla, led by Musk, is not giving up so easily.
Musk feels that Tesla is not “violating state franchise laws, because the company has no franchised dealers.”
While he is well aware of the uphill battle facing the company, Musk continues to forge ahead. Here is a statement made on the showdown in Texas:
“Electric vehicles simply cannot be sold side by side with gas vehicles because they will always be a minority item in terms of sales and service volume. Existing franchise dealers have an inherent conflict of interest between selling gasoline cars, which constitute the vast majority of their business, and selling the new technology of electric cars. It is impossible for them to explain the advantages of going electric without simultaneously undermining their traditional business. Simple math shows no traditional dealer is incented to sell an electric vehicle with the same enthusiasm as the rest of their inventory. Tesla is only seeking the ability to sell and service its cars and tell the electric vehicle story in an unfettered way, allowing Texas consumers to make their own choice in favor of sustainable transport.”
When you look at things from Musk’s point of view, he has a strong case. That being said, he has a lot of convincing to do before he can bring Tesla’s vehicles to Texas.
Regardless of what happens in Texas, Tesla Motors Inc (NASDAQ:TSLA) scored a big win in New York.
To learn more about the future of Tesla, including a new sales strategy, check out the video on the following page: