Tesla able to continue direct sales in New York

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Tesla able to continue direct sales in New YorkTesla has been confronted with multiple legal disputes in recent months as certain states try to prevent the company from selling directly to consumers. At least one more state is giving in and will not block Tesla from selling to consumers. A law has been enacted in New York that lets the car company sell directly to consumers in its five current locations, but any future locations must be dealerships. This compromise will at least allow Tesla to maintain its presence in the state.

In most states, Tesla has been forced to strike a deal with legislators, even though its direct sales model is not something that hurts consumers. Instead, the sales model only hurts dealerships, and Tesla CEO Elon Musk has made that point very clear. When New Jersey was trying to ban the sales model, Musk went as far as to call the state corrupt because it gave in to the auto dealership lobby.

Just shortly after the New Jersey ruling was overturned, Tesla has been given the OK to continue with its sales in New York. There are still some states that Tesla may not be allowed to sell in due to antiquated laws that favor dealerships.

Via {Engadget]

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  • William Holder

    Why should consumers be forced to deal with “middle men” dealerships whose only reason to exist is to eke more profit out of the consumer? We wouldn’t put up with this sort of treatment for other products, why should we for cars? Forcing a company to deal with independent dealerships rather than direct retail outlets simply hurts the consumer and provides no additional value to the local community. Legislators are simply taking money out of consumers’ pockets and giving it to the dealers.