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New York Lawmakers Set Aside Bill Threatening Tesla Sales
- kdkdkdkdkdkdk 13y ago>> It also would’ve blocked registrations of new vehicles bought out of state. Doesn't this sound insane to anybody? With that kind of a clause in the law all credibility is lost for whomever is sponsoring this bill.
- kiba 13y agoHow many salemen do you need to run a dealership? I would have thought most of the dealership employees are the mechanics and support services?
- transfire 13y agoWhew!
- Felix21 13y agoWhy would someone even consider creating a law to protect an industry that technological and business model "innovations" are threatening to replace. Is that not how the free-market is suppose to keep the whole system efficient? It just sounds absurd: "I'm going to jail Hun" - what did you do? "I made a car... and then I sold it... directly to those who wanted it" - ....... ridiculous
- contingencies 13y agoThese days much law is first and foremost a tool for the wealthy and the politically connected, which usually means established interests.
- swinnipeg 13y agoRent Seeking exists in so many places. "rent-seeking is an attempt to obtain economic rent by manipulating the social or political environment in which economic activities occur, rather than by creating new wealth" A great side effect of popular companies like Tesla and Uber is the attention they bring to these practices.
- _greim_ 13y agoSo where are the Republicans when you need them, to shout down this new government regulation?
- pbreit 13y agoDoes banning direct auto sales make sense anymore? Did it ever?
- pyre 13y agoI believe that it was originally a customer-protection measure. These days though, it's just a way to protect car dealerships from competition with the manufacturers.
- thaumasiotes 13y ago> Did it ever? As much sense as banning direct beer sales.
- robomartin 13y agoAtlas Shrugged. We continue to approach it. For those not familiar; from the wilipedia page: "The book explores a number of philosophical themes from which Rand would subsequently develop Objectivism.[7][8] In doing so, it expresses the advocacy of reason, individualism, capitalism, and the failures of governmental coercion."
- johnchristopher 13y agoHow is Tesla direct selling to customers hurting car shops that sell cars from one or more traditional manufacturers but none from Tesla ? Is there a rationale behind that ? As in car shops are scared Ford or GM would open a direct-to-customers shops for lower prices than they could offer to ?
- dagw 13y agoNPR's Planet Money did an interesting show on the topic: http://www.npr.org/blogs/money/2013/02/19/172402376/why-buying-a-car-never-changes http://www.npr.org/blogs/money/2013/02/19/172402376/why-buyi...
- johnchristopher 13y agoThank you. > There are plenty other businesses employ lots of people but don't have so much protection from state laws. > > That may partly be due to the fact that car dealers have a lot political power. Dealers contribute a big share of state sales tax revenues — as much as 20 percent in some states — and they tend to be big local employers. That makes state and local legislators listen. Interesting. So they basically are afraid of any dent in the system even if it wouldn't erode their own sells (of every brand but Tesla).
- messick 13y agoThis isn't about Tesla. Tesla's sales numbers are a rounding error compared to any of the big car manufactures. The dealers are afraid of Ford or Toyota opening up a bunch of their own dealerships. That would really put the hurt on them. There are over 17k dealers in the US, and they aren't just going to roll over and go out of business.
- Hoff 13y agoRelated Reading: "Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers": http://www.justice.gov/atr/public/eag/246374.htm http://www.justice.gov/atr/public/eag/246374.htm
- bashgrep 13y agoSimilar events happened in Texas, but Texas' legislature isn't back in session until 2015. http://money.cnn.com/2013/06/04/autos/tesla-texas/index.html http://money.cnn.com/2013/06/04/autos/tesla-texas/index.html and in North Carolina... "Any time there's an innovative way to bring a product to market it's going to initially get push back from the fellows that have been doing business the same way since 1902..." http://www.charlotteobserver.com/2013/05/24/4062463/tesla-service-center-in-raleigh.html#storylink=cpy http://www.charlotteobserver.com/2013/05/24/4062463/tesla-se...