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Two Anti-Tesla States Softening Their Stance?

Two Anti-Tesla States Softening Their Stance?

In addition to Florida Senator Marco Rubio coming out in favor of Tesla ( http://www.cnbc.com/id/101522333?__source=yahoo%257cfinance%257cheadline... ), as well as two New Jersey politicians writing bills to allow Tesla sales in New Jersey, could Arizona and Texas be softening their stance on Tesla's direct sales model? Check out the below articles below and leave your comments...this could be the beginning of the thaw on dealers icing out Tesla!

http://www.fool.com/investing/general/2014/03/25/the-tesla-gigafactory-m...

Arizona Bill advances to allow Tesla sales:
http://www.usatoday.com/story/money/cars/2014/03/21/tesla-arizona-vote/6...

or this article about Texas Governor Rick Perry possibly softening his stance:
http://www.siliconbeat.com/2014/03/24/texas-gov-rick-perry-the-pros-of-a...

Boukman | 2014年3月25日

I understand why the car dealers are resistant to Tesla, but I do not believe it is really about the direct sale model, in my opinion it is much more than that. They are worried about a future where most cars are EVs. As E. Musk said, EV's will put a serious dent in the revenue stream these dealers rely on now. In fact, other industries, such as the car parts industry, should worry as well. No more oil filter sales, no PCV valve to replace, etc...etc...I am sure an EV parts industry will rise as these cars get more and more common, but for now people are worried...I would be too...

Homebrook | 2014年3月25日

@Hab you may be correct about the underlying concern of car dealers, however, if true, I would find it an interesting phenomenon because I cannot imagine any dealer admitting to having such a concern. It would be like objecting to the original automobile on the grounds that it would put a serious dent in the revenue stream of wagon wheel repairers, hitch suppliers, or poop scoopers and make them look like a bunch of Luddites. But then again claiming that they're defending the consumer is every bit as nonsensical.

Car t man | 2014年3月25日

Well, think of it this way. The whole idea behind AC drive trains, especially induction motor based, and tech like zinc air batteries, was to have an electrified world, without narrow throats in supply of raw materials to do so,
meaning weakening many centers of power, currently in position, and also simplifying, and by factors reducing wear and tear of components used in
industry and vehicles. Naturally, this scares many, who depend on those within existing current economic model.

You need to understand:
1. Economy is spending. If people don't spend, you don't have a job. Someone designs, develops, packages, delivers, makes commission,.. on almost everything surrounding us. That someone also then spends at stores, gas stations, utilities, etc.. The simplest showcase of what happens, when that is disrupted, is the global collapse.

2. No quick changes on global scale, are good, because they don't allow reconfiguration, allowing everyone to find new safe positions. That makes those who aren't certain of having a space in new configuration, opposed, combative, subversive, etc.

3. You don't win by trying to kill EXXONs of the world. You win by enabling a model, where they can be a part in the new reality, making money and jobs in it. They fight, because those new realities aren't being made available before hand, on a plate. So they induce fear and reluctance.

Even those who don't like Tesla, don't hate it because of what it is. They don't like that what they are, doesn't allow them to be Tesla and what Tesla is, or at least not easily or overnight.

Tesla is a direct, but more of an indirect threat, to something that has provided many with livelihood for decades. When they realize it doesn't spell the end of the economy as they know it, but simply makes new opportunities, they will relax. But until then,..

If someone makes your company or product potentially obsolete within a week, possibly leaving you and your family in the cold, will you feel comfortable? No. You will slip into protective mode.

I fully understand the dealer, oil man, etc. But, they need to be willing to adapt, rather than cry and whine. There will simply be new opportunities and years from now, they won't even remember or know why the fought it in the first place.

It is a clear patient dilemma. A patient who fears operation, will go through tremendous battles, fear, opposition, etc ahead of operation, but will be immensely revealed and happy he/she had it, but only after having it.

alanwwebb | 2014年3月25日

Hmmm.
us auto industry sales in 2013 = 15 million
Tesla sales = 21,500

Not much to worry about for awhile.

I think the dealer orgs are more afraid of the attack on the way they do business.

chenglo1 | 2014年3月25日

i'll play devils advocate here: when the day comes where the parts suppliers or service centers need an income stream, they already have access to updates! they can simply program bugs into our cars to cause issues so that we can bring them in for service. Boom! we'd be right smack where we were at the mercy of the service centers or manufacturers! I pray this will never ever happen but possible??? How can we protect ourselves from this?

Brian H | 2014年3月25日

It's kind of a singularity; change so fast it's "vertical" by previous standards. Seeing what's beyond it is hard, and it looks a lot like a wall as you approach it. Think Rust Belt, 10X faster. Humans are adaptable, but there are limits!

Car t man | 2014年3月26日

The economy might not be as adaptable. Energy shocks, financial shocks, panic and spirals,.. are all events the existing tools are not equipped to deal with, so you have central bankers who wish and prey things mend,rather than
being able to fix them.

@Chenglo

if that begins to happen, you can expect the after market to sell the antidotes, in form of fixes, throwing cars off grid, etc.

I am more concerned about governments actually wanting cars to talk to one another and be in networks. Governments can't even protect own drones from
hacks, let alone cars and highways. It is a dumb and naive move, which will
end up in thousands killed in attacks on the systems. Much easier than
crashing planes into buildings or other similar scale terror attacks.

Clicks of buttons thousands of miles away. Maybe in retaliation for some
terror suspect being blown to pieces by a drone flown with clicks of button
thousands of miles away. Governments should stay clear of pushes like that
because they don't even come close to being able to block such attacks.

vgarbutt | 2014年3月26日

I think its absolutely wonderful that these states are trying to avoid the inevitable, with these knee jerk reactions to a perceived threat of an alternative to ICE. You can't buy this kind of promotion. In the end, they will relent, as any supreme court would would rule against them i think. In the mean time, The musk machine rolls on aided by the attention they are being given by attempts to stop it. They are not stopping a rival car manufacturer, but they are trying to inhibit the growth of EVs. I think the tipping point will be the supercharger infrastructure. No other car company, and i guess im thinking hydrogen, was willing to provide the infrastructure even though its the fuel supply that is critical factor in mass adoption. Teslas plan to provide that infrastructure on a global basis wherever it markets its cars, that will be the game changer. Usually everyone looks to the government, and were not willing to take the risks Mr Musk is willing to take to get the job done.

Brian H | 2014年3月26日

cartman;
"wish and prey" -- ya, they do that, but I think you meant "pray". ;)

holidayday | 2014年3月28日

Four states on the list:
http://www.fool.com/investing/general/2014/03/27/4-states-that-may-be-wa...

Ohio
Arizona
Texas
New Jersey

Two want the Gigafactory, two others have a vocal populace and/or wise politicians who see how the future will look.

rlwrw | 2015年8月20日

The articles that the OP posted are from early last year.
That was then, what is happening now?

PTP | 2015年8月24日

I heard from a reliable source that the dealerships in Michigan don't want to allow direct marketing from Tesla allowed because then it would allow direct marketing from all manufacturers. As stated in this thread the # of cars sold by Tesla is inconsequential compared to overall numbers and that is unlikely to change anytime really soon.

Red Sage ca us | 2015年9月3日

What every dealership organization fails to admit is that they already have iron-clad contracts with traditional automobile manufacturers that allow them first right of refusal for whatever they produce or market. It effectively amounts to veto power over their product lines. I strongly suspect that the reason why you see so many cars on the road that are white, black, silver, or gray has to do with the fact that 'independent franchised dealerships' are the only real customers that traditional automobile manufacturers have, and those guys have no imagination whatsoever, so they fill their lots with white, black, silver, and gray cars and the public chooses from the best on offer.

The existing franchise contracts, combined with extremely specific language in automotive franchise law, allows the 'independent franchised dealerships' to have an unassailable position. It would not be possible for Ford, GM, or Chrysler to sell direct in any way without getting their pants sued off of them. They could neither form new marques nor resurrect old ones such as Mercury, Saturn, and Eagle to offer electric cars through direct sales online.

Essentially, the only escape route allowed to traditional automobile manufacturers is bankruptcy. Oh... Wait...

That is exactly what happened after the financial collapse in 2008. GM and Chrysler were forced to close hundreds of dealerships as a condition of receiving a government bailout. Not that they complained, because they probably wanted to do that anyway. Ford had already begun to gradually close both dealerships and factories in the years leading up to the collapse (and had received nearly six billion bucks from the government in another way) and thus didn't need bailout money.

Everyone is aware that the 'traditional franchised dealership system' is a problem that weighs on the bottom line. There are too many dealerships, hundreds of them in some states. But traditional automobile manufacturers don't want to buy out their contracts, and 'independent franchised dealerships' don't want to sell. Stalemate.

This will end in disaster. Again. And meanwhile, Tesla Motors will continue to grow.