It’s a DUMB move, because as we all know, anything banned is just going to make even MORE folks want it!
I’m not comparing Tesla to cocaine, or Elon Musk to Pablo Escobar, however, we all know Escobar was a one of the wealthiest humans on Earth (during his life), all from US money he made selling a cheap drug that was illegal in America.
How embarrassing for NC. I pity the people with brains in that state who have now been made to look like ignorami.
Hey, who are you calling "ignorami" I'm was raised and spent most of my life in NC. Not everyone is backward thinking like the current governor and the politicians. They are the dumb ones. not the good citizens of the state.
Careful - don't paint all North Carolinians with the same brush. There are 80 of us in NC that own the Model S and are already part of the "family". I sent emails to my politicians in an attempt to expose the stupidity of this move. The fight isn't over yet, so stay tuned.
A majority voted for the morons in power...
Unfortunately North Carolina is the same as any number of other states where politicians, in response to pressure and donations from existing businesses, try to rig the market to protect already entrenched business and exclude newcomers. (Massachusetts, Texas, etc.)
"The whole point of the retail system is to protect the consumer,” Robert Glaser, president of the North Carolina Automobile Dealers Association, told the News & Observer. What bunk.
This may have been true in 1950 when there were only 3 major auto manufacturers, and consumers were expected to buy whatever was provided, but it is hardly true today. Any single car company now competes on a world stage, and must provide value for the dollar. I remember when the standard new car warrantee was 12 months or 12,000 miles,m and after 2 years cars fell apart. This only changed as global competitors entered the US market and the "big 3" were forced to change in order to compete.
With the ability to instantly compare prices, options, and get customer reactions; sales via the internet promise much more protection for the consumer than the existing system. If the politicians truly cared for the citizens they represent they would not support restrictive sales laws.
If TM wants to change things in NC and elsewhere, all they need to do is refuse to sell and service cars in those states. The voters will revolt against their elected leaders and throw the bums out during the next election.
While this may sound counter-intuitive, the upside for TM is that this path continues to open "emerging markets" in the United States as each state allows them to operate. This keeps new reservations flowing at a manageable rate without spikes and troughs while TM builds internationally.
Win win win win:
Somewhat steady increases in cash flow
Emerging, cost effective sources of reservations and customers
Self-regulating growth while TM continues international focus
My stock appreciates
good idea, I've thought that might be a "nuclear option" for some time.
Or make NC super charger heaven so folks like to drive to and through NC - best advertising.
The nuclear option would be the most fun to watch, for sure. Fairly high down-side risk, though and TMC would not want the precedent to be set. One potential issue is Tesla being perceived as a car for the rich elite; while the median household income is only ~ 46k, that is the 40th highest in the US, so maybe.
TMC hinted at making a Tesla truck in TX - what can they throw at NC??
An electric fishing trawler?
Just go to a neighboring state- the only move to counter that would be to prevent the transfer and registration- now that would be an interesting revolt
NC has done the whole country a big favor by outing the self-interested influence of the car dealer lobby.
Citizens of NC and every other state must be free to choose where they buy cars.
If dealers earn their goodwill, they will come back for more cars. If they try to force them to buy only from them, consumers will leave them quickly.
NC dealers have put a spotlight on Tesla that will cause more buyers to ask why the car is so much better.
This will ironically backfire on the dealers and hurt them more than if they had just competed honestly.
Well, to be fair... California it's share of greedy idiots in powerful places also!
As it stands, our state wants to eliminate HOV lanes in-favor of HOT (toll lanes), and thus not give zero-emission vehicles any more incentives to drive in these lanes without paying a fee, when our tax payers already built and paid for these lanes many years ago.
Also, I just heard that So Cal Edison is 'concerned' that solar-power is cutting into its revinews (duh!!!!). Yet, they complain constantly that they don't have enough power to handle all the newly constructed homes here, and we are still dealig with brown-outs during the hot summer months.
The hyprocracy in our nation is at an all time HIGH!!!!!
@Kleist and others
I like the way you think. NC residents can SEE the car, but they can't own it. Ouch!
As my daughter would say: So sad, too bad.
That should add some insult to injury ;)
Kick the hornet nest, then let the politicians and special interest lobbyists get stung.
I have little doubt that the citizens of NC are a smart bunch. It won't take them long to find a solution.
The first NC politician to advocate for TM will become a hero. Who will it be?
Riddle me this barman; If auto dealers are so good at "protecting" consumers, why does the consumer rank the auto dealer experience as the worst part about buying a car?
I also thought that conservatives were supposed to be for free markets. I guess what they are really for are campaign donations, and perpetuating their own power (and before any democrats pipe in, this is true of them to).
@Kleist, I think FAR better to put no superchargers anywhere near NC so that all Tesla owners are further inconvenienced there. Between the pent-up demand and the inconvenience to buy AND the inconvenience to own, there will be a repeal of that legislation. As Tesla becomes more popular, NC is not going to stand alone as an island.
That sounds bad, but consider this.
In WA, EV drivers don't get to use HOV or Hot lanes. In fact, we pay an extra $100 per year for an EV.
Oh, and it gets better. Our light rail system is subsidized at 96% of every trip. Each one-way light rail trip costs $100. The commuter pays $4. Taxpayers pay $96. Every commuter, every trip, every day. And the light rail trains are so unreliable that most people won't use them in 50% of the area they serve.
How's that for idiot politicians?
Same thing with our utility provider (PSE). A few years ago rate payers were saving million$ with a time-of-day system that prevented the utility from having to buy expensive out-of-state power and build expensive infrastructure. In fact, it was so successful they had to start laying off staff and management, further reducing costs. Of course, that was "bad" in the eyes of government so the program was scrapped.
Sorry, but it's Friday and I had to vent.
Another good idea. Either way, states like NC will lose the battle. i wonder how long it will take.
This is THE greatest country in the world. We will solve this problem.
I have no doubt that all of these states' efforts against Tesla are motivated by lobbying money, as is most of our nation's politics now.
I have an observation that I've noted for a few years and I'm not sure how it fits into this, or if it does: I'm sure everyone has noted in their hometown, that there is one guy who's the auto dealer guru and owns dealerships for multiple manufacturers: Joe Schmoe Subaru, Joe Schmoe Toyota/Chevrolet, Joe Schmoe VW, etc. What that tells me is that manufactures don't give a sh!t who's selling their cars as long as the product gets moved and that the dealership owner cares more dominating the local sales market rather than loyalty to any one brand, providing the best service for buyers, or true belief that "VW makes the best cars available" or similar.
Really? As a Norwegian I beg to differ.
@hfcolvin - exactly... same here - ten years ago every brand was an indipendent dealer now the entire auto row is one dealer. Sales experience is bad, service worse and expensive.The franchise laws shifted the power from the manufactures to the dealers. A manufacturer can not just fire a dealer... dealers are a huge liability for the manufacturer. I am sure every manufacturer is secretly pleased with the Tesla approach... Some dealers are actually saying that there is no gain in hiding behind the franchise laws instead they should be looking how to evolve the dealer business and add value to the process again. The internet changed the world of car buying, the dealers need to evolve too to survive.
I used to work for a Honda Dealer (13 years ago) as a Service Advisor. It was the worst Job I ever had, truly hated it. I had a salary of $250 every 2 weeks but got 6% of gross parts and labor sales. This pay method is really bad for customers since it encourages the service advisor to recommend repairs that are really needed. since I know how dealers operate, I don't trust them, you shouldn't either, they are not there to protect the customer, they are there to take advantage of the customer.
Loss of sales tax revenue might be one factor to sway the politicians to allow sales in their state. I heard that in Texas you order your Tesla and "buy" it in California, then you pick it up in California and drive or have it delivered to Texas. Does this mean that California gets the sales tax? In the case of North Carolina, if you buy the Tesla in an adjacent state does that state get the sales tax?
My understanding is that the sales and excise taxes are paid to the state where the car is registered and titled. In most jurisdictions, the car can only be registered in the state where the owner is domiciled. Thus for cars bought out-of-state, there should be no double taxation, only in the state where the buyer lives.
So the argument made by NC legislators is that allowing Tesla to sell direct to consumers is an unfair advantage.
Ok, if the claim is that a direct sales model is unfair to auto dealers, the argument falls apart when no dealer can sell the same vehicle being sold directly and can only sell competing vehicles. Meaning that the competition is based on the merits of the car itself, not on how the vehicle is sold.
If the claim is that the direct sales model is unfair to auto manufacturers, the argument again falls apart since, obviously, each manufacturer makes their own vehicles. Again, the competition is based on the merits of the vehicle itself.
Therefore, the North Carolina legislature is apparently arguing that no superior vehicles should be sold to their consumers.
- That is not a bad advertisement for the outlaws at Tesla. Like the guy who got kicked out of Saudi Arabia for being too sexy, this should ensure quite a bit of action.
A skunk can't evolve into a racehorse.
I don't think the dealers care so much about TM. Rather, they fear the precedent of direct sales as being the camel's nose under the tent. If TM has the right to do it, the other manufacturers can't be far behind.
One of the biggest issues in the GM and Chrysler bankruptcies was the elimination of many dealerships. Their clout was evident in the uproar felt in Congress. But they represent a very inefficient way to sell cars, which is why GM and Chrysler needed to pare them back. If TM succeeds without dealerships, the other manufacturers will need to follow suit. We haven't seen the end of this battle by a long shot.
Rather than keep Model S's from the NC residents I think it would be better to advertise there and try and sell as many as possible... also put in a bunch of superchargers. You won't effect the political climate if no one really knows what they are missing.
"Get your Tesla Model S now before your state makes it legal to own one but illegal to buy one!"
eadopter i also live in WA. we dont pay sales tax on EVs so i saved over $7k on thta... the $100 in lieu of gas tax is NOTHING.
transit~ solid point there except our light rail was a public referendum. cnat blame the politicians in olympia for that one.
Good point regarding the sales tax. Thanks for the reminder. I feel better.
Light rail was not delivered as promised, and what was delivered is much more expensive than promised. We'll just have to disagree on that one.
One of my frustrations in WA is that many programs and good ideas are turned into "jobs programs" that unnecessarily grow government. The 520 tolls (I-90 soon) and HOT lanes on 167 are a perfect example. The same revenue could have been efficiently raised by a small, insignificant gas tax increase. Instead, WA built a large tolling infrastructure for miles and miles of highways that require hardware, software, maintenance, scheduled replacement, and more staff to support everything. This choice costs millions and is very wasteful in my opinion. A small gas tax increase would have cost zero - 100% efficient.
@GeirT As a Norwegian having made the US my home, I would have to say @RanjitC is actually right ... Sorry, but it has been confirmed ;-)
Place an SC just north and south of North Carolina's borders on both Interstates 95 and 77 corridors. That would put them 180 and 110 miles apart respectively.
All those towns would be bypassed - revenue lost.
Politicians!! You got sum splainin to do !!!
The Dealer experience is horrible, in the states as most of us are in, you go to a dealer with a specific amount of money in mind you want to spend and a specific set of features you want in a car. The dealer pressures you constantly to upgrade or buy features you do not need or put you in a car that will ultimately not serve the purposes you need a car for (like trying to up-sell you a pick up truck when you needed a mini van), if the car sales man is any good you might actually start considering his "point of view" by the time he is done talking.
Not to mention some dealers add small cosmetic "Add-ons" to the car to jack the base price up. I remember when those striped you always saw going from the hood to the trunk were dealer installed and they charged you an extra 150-200 for it weather you wanted it or not.
Tesla does not pressure you, I walked into a show room fully expecting them to give me a sales pitch but instead they walked me through the car and told me what I would pay if I finaced one. I told them I had to save up and was just getting an personal feel for the car. At this point most car sales men would just walk away but the Tesla rep understood and continued to answer any questions I had followed by a handshake when leaving.
That is customer service!
To hsadler and Senator Tom Apodaca (Rep. NC): The basis for the original dealer protectionist law was to keep Ford from opening a direct sales business in the state and undercutting the protected dealership. A wholesome law that makes sense. It doesn't matter where the vehicle is sold, the state of NC will realize the sales tax when the owner registers the vehicle, so lets not fall for this lost revenue smoke screen. Sen Apocada "received a state-maximum $8,000 in contributions from the 7,000-member NCADA in 2012. He noted steady contributions from the industry date back years, and he's a top Republican with a pro-business reputation" quoted from the Associated Press article. So to me, it is clear why this legislation is passing. The only revenue being "protected", appears to be certain war chests. So if Pepsi donated the $8,000, (maximum allowed) they could probably get sales of Coca Cola banned, I guess.
Read more: http://www.foxnews.com/leisure/2013/05/25/tesla-motors-cut-out-middleman...
Lets see anyone from Fox News report on a good experience from a dealer and not be biased to the dealer!
I think this whole argument NC and Texas are making is bordering on racketeering. Car dealers are slimy and I hate dealing with the salesmen and the service departments. All they are protecting is their wallets, the consumer is their patsy. The current intimidation tactics to "protect" these car dealers is a bunch of BS. Tesla all the way!
There's more than one way to fight 'dealer grip' than trying to complain about their tactics.
The politicians need to be shown that other businesses will be affected by the eradication of Tesla type marketing and influx of vehicles (and SC's) to their constituency.
There's money to be brought in from people passing through the state and that is something that should not be deflected.
Wait would Tesla not technically be a dealership if they allowed reservations to be made at their show rooms?