Dealers call Tesla factory stores illegal.
Let me get this straight…the dealer network, which has invested nothing in the company and had no interest in Tesla finally noticed that, hey, these guys might actually be on to a decent product people might actually want to sell. The dealers cannot sell the product, so…sue them out of business?
This quote is precious:
In Illinois, the Secretary of State’s office told Tesla officials in a meeting on Sept. 28 that the EV manufacturer is breaking Illinois law by listing company founder and CEO Musk as the owner of its suburban Chicago store. Tesla officials said they would correct the problem and asked for 30 days to respond, said Jay Mesi, deputy director of the Secretary of State’s Department of Administrative Hearings.
“We’re not looking to put someone out of business,” Mesi said.
Yes you are. The fact that the dealer’s associations were able to get legislatures to pass these laws in the first place puts paid to the notion that the state is operating in anyone’s best interest but the dealers. The laws that prevent manufacturers from opening dealerships were passed because the dealers were negotiating terrible franchise agreements and needed big brother to bail them out of their own bad decision making.
Now they see a superior product about to clean their clocks and the only way to fight it is to make the government give them an advantage. What will happen is not what the dealers are hoping for. Tesla is a smart team and Blankenship knows what he is doing.
I bet the other auto majors are looking on in anticipation right now. I think I need to get the popcorn.
Because clearly we should be selling cars the way they did in the 1920s!