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Published on September 3rd, 2014 | by James Ayre

9

Tesla Wars — Georgia Dealerships Association Is The Latest To Go After Tesla

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September 3rd, 2014 by
 
In the latest of a long line of legal attacks on Tesla Motors by America’s car dealership associations, the Georgia Automobile Dealers Association has put forward a petition intended to stop the popular EV company from selling its vehicles direct to customers, and to revoke its license.

With the recent move, Georgia now joins the likes of Ohio, New York, New Jersey, Ohio, Missouri, Pennsylvania, etc, as a battleground between the (arguably) very outdated car dealership model of car sales and Tesla’s direct sales approach.

Image Credit: Tesla Motors

Image Credit: Tesla Motors


 

As far as why the dealerships are going after Tesla? Well the answer is obvious — they aren’t getting a cut. Or, perhaps to put it more accurately, they aren’t getting the chance to rip customers off with massive mark-ups.

Stockwise Daily provides more:

Representative of 500 dealerships, GADA, a name for Georgia Automobile Dealers Association, has submitted a petition wherein it has requested that not only should the brand be stopped from selling its Model S from its outlet at Marietta but that its license should also be revoked. At the core of the grievance is that fact that Tesla Motors, instead of limiting their sales to 150 cars as required by state rules, sold as many as 173 units.

While Tesla Motors’ spokesperson, Liz Jarvis-Shean, declined to comment on this latest development, representative of the Georgia Dealers’ Agency, Nick Genesi, provided confirmation on the filing of the petition. In spite of the latest development, Tesla’s stock touched a record high of $269.70 since its IPO in June, 2010, thus registering an overall increase of 79% during this year alone.

Eric Ibara, a senior analyst for Kelly Blue Book, made the following comment on the development: “It’s difficult to find fault in the dealers association point that manufacturers should adhere to the existing laws. With the success of the Model S and the prospect of future Tesla products, it’s also not hard to envision a groundswell of Georgia voters petitioning their lawmakers into allowing for the sale of these cars in their state.”

Of course while said developments have the potential to impact US sales in some ways, the fact of the matter is that Tesla probably doesn’t have much to worry about. With strong sales in most US markets and growing sales in overseas markets like China, the company seems to be in a pretty solid position.

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About the Author

's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy. You can follow his work on Google+.



  • djr417

    This just sounds so un-American. Its an American company trying to sell cars in America…trying to stop it ludicrous. The status quo does nothing for progress, nothing for innovation, it just lines the pockets of a few businessmen. Its like charging to send an email, because the US Postal Service would suffer otherwise.

  • Burnerjack

    I’m all for a level playing field, just as I am all for consumer choice. I say let Tesla sell their products as they see fit. If the other manufactures follow suit, fine. I suspect they won’t due to the large numbers of transactions involved. Allow them to follow suit and if they choose not to, well, that’s THEIR decision.

  • NRG4All

    A year or so ago I contacted my Republican representative about supporting renewable energy. The reply I got was that the government should not be “picking winners and losers” and let the free market decide which will succeed and which will fail. Now the public in essence is subsidizing car dealerships by being denied access to a free market regarding car purchases. If the Tesla model is bad as the car dealership organizations claim, then they will fail, If their model is good it will succeed. Now that the shoe is on the other foot, my Republican representative is mute.

    • Bob_Wallace

      Did you happen to ask your Republican representative why taxpayers were footing the bill for coal’s external costs? Did he have a reason why the government was helping coal be a winner?

      How about why the government was providing low (zero) cost loans and loan guarantees to new nuclear plants but not creating an even playing field by helping wind and solar in the same way?

      Perhaps he’s not aware that the government is interfering in the free market and keeping it from working its magic. ;o)

      • NRG4All

        In the words of Yoda, “Right you are.”

  • vacuumbilly

    “Mind Kontrol” is what government means. Voting does not count as it is fraudulent contract. USA Inc is a privately owned corporation, just like CANADA and the other 186 groups of people who borrow money from the privately owned IMF.
    After you own an electric car for awhile, what will you want next? A UFO.
    Then all sorts of new tech emerges as we dump the fraudulent “gravitational relativity” as Einstein didn’t know what a fractal is nor did Newton know anything about electricity nor the ElectroMagnetic reaction which is 10 to the 40th times as powerful as gravity.
    In the future the MAGic of MAGnetism will be revealed through sacred geometry and Vortex Based Math. Information implies a 3D education as opposed to the flat 2D paradigm in place it schools which recruit into hierarchical thought ( a sphere on top of a flag pole advertises recruiting ) rather than revealing the hologram they are a fraction of.
    Can you imagine Tesla using the fractal algorithms that Google Instant uses to search so quickly? Soon charging ( spin inertia ) will be accessible using standing wave geometry in what used to be called ‘Solid’ state electronic devices and plugging in will not be required. Read your Dr. Robert Moon and Google “Vedic Math”. Check out Richard Merrick and Alex Putney.

  • Robert Fahey
  • http://www.carnewscafe.com electricnick

    It’s true that it is hard to fault the Automotive Dealership Association’s claim that carmakers should “respect” the law, but this opens up a can of worms. First, it invites a review of the law in order to modernized it. That would be to the dealerships association’s disadvantage. Second, Tesla is not a carmaker, something we’ve been saying for years, so the company will dance around with that one. Lastly, either we stick to our guns of “land of the free”, or we become a country infested and gangrened by lobbies and other vested interests. Sorry about that last moot point… But, seriously now, what a can of worms this is opening, indeed!

  • Brian Donovan

    We don’t need gov interfreacne, oh wait could you stop our competition, please?

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