Published on April 17th, 2014 | by Cynthia Shahan


Tesla Stuck In The Sand In Arizona, But Overall Demand Strong

April 17th, 2014 by  

Tesla wants one thing. Car dealers in Arizona want another. Consumers mostly want what Tesla wants, but car dealers are strong in the realm of lobbying. Car dealers recently won in the Arizona legislature as a bill to grant Tesla Motors the ability to sell Teslas direct to consumers stopped short — not even making it to official consideration.


Image Credit: Tesla

What is up with this prohibition on this innovative electric auto manufacturer? In Texas, New Jersey, Virginia, Maryland, and Arizona, Tesla is not allowed to set up shop and sell its cars to consumers. Though, Virginia may be warming up to the Silicon Valley startup, and members of the NJ legislature as well as Texas Governor Rick Perry are pushing for a change in their states).

Unfortunately, measures to lift the prohibition are dead in the sand of Arizona, or rather, in the bureaucratic judicial buildings built on that sand. I love the creative slant from Teslamondo: “Tesla stores in Arizona continue to operate like 1920s speakeasy saloons. You have to mutter about buying the contraband within. Musk has ordered honky-tonk pianos to boost the ragtime effect.”

The Phoenix Business Journal continues with more info on the situation:

State Sen. John McComish, R-Ahwatukee, said House Bill 2123 is not being considered by the Arizona Senate. The measure would have lifted current prohibitions on auto manufacturers selling directly to consumers instead of going through dealerships.

McComish, who sides with Tesla, said the measure is not progressing in the Senate and the 2014 session is winding down.

“It’s the Senate president’s prerogative to put something up or not. It appears like it’s not,” McComish said of Senate President Andy Biggs, R-Gilbert.

Bobbi Sparrow, president of the Arizona Automobile Dealers Association, also confirmed she’s been told the Tesla bill is dead for this year.

And here’s a bit more fun commentary from Teslamondo on other Tesla news: “Elsewhere in the desert, let’s talk about them plateaus. Demand for the Model S is stuck on one, says Barclays Capital: “Elsewhere in the desert, let’s talk about them plateaus. Demand for the Model S is stuck on one, says Barclays Capital. No, demand is still climbing, says Tesla, and that’s with virtually zero marketing effort. Someday Tesla will advertise, you know …”

We’ll give Value Walk — from an article titled “Tesla Model S Demand Not Slowing, Model X Strong Too” — the last word on this matter:

Tesla Motors Inc (NASDAQ:TSLA) has rejected recent reports around the slowing Model S demand.

But perhaps better than the last word, below is the last picture, Teslamondo’s new header:


Image Credit: Teslamondo

Related Stories:

With Gigafactory, Tesla Could Become More American Than Ford

New Tesla Gigafactory May Get Greener Raw Materials From Arizona

Tesla Motors Conquers North Carolina

Tesla Still Allowed To Sell Its Own Vehicles In New York

Auto Dealers Say Tesla Opening Stores In Minnesota Is “Not Fair”


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About the Author

is a Mother, an Organic Farmer, Licensed Acupuncturist, Anthropology Studies, and mother of four unconditionally loving spirits, teachers, and environmentally conscious beings who have lit the way for me for decades.

  • Larry

    Morons in the AZ legislature would promote anything a business lobbyist tells them to support. More jobs? Duh? You mean the company may tell us to “take a hike” if we prevent them from selling their product in our state? Wowsa

  • rconaway

    Telling a company how to sell has to be a violation of free speech. Since the dealers are the ones lobbying against Tesla while Tesla is offering to build a big plant that will create lots of high-tech jobs, we should just start boycotting dealers so they lose the same number of jobs that Tesla was going to bring here. I just bought a car in Phoenix and we were looking to buy another one but forget it. I’ll go to Nevada and buy it there when I’m ready. Arizona dealers can now kiss my *#W#$#.

    • Bob_Wallace

      Not free speech. But it’s likely that AZ would lose were this to go to court.

      It wouldn’t take 15 minutes to build a list of manufacturers who sell product direct to customers in AZ. And it would be pretty much impossible to build a valid case why the dealer needs to be in the chain in order to protect the customer.

      • shecky vegas

        Bob – Tesla ought advertise directly to the consumer like the old K-Tel records of the ’70’s.
        “Call now and get 25 of the latest advances in car technology! It’s the EV package of your dreams! And, if you call within the next 10 minutes, you’ll get a free copy of Surfin’ Bird!!!”

        • Bob_Wallace

          Tesla doesn’t need to advertise. I think Tesla has spent zero dollars on advertising to date (aside from their web page).

          Tesla gets an enormous amount of free advertising and these bozos in Arizona are giving them a big helping hand.

          • shecky vegas

            Definitely. The old “This is bad for you, go away” claims will always draw more interest than if they simply accepted Tesla with simple limitations, like, “you can’t sell on a Wednesday”, or some nonsense like that.
            In my defense, Surfin’ Bird rocks. Have you heard about the Bird?

          • Bob_Wallace

            The Bird’s the Word. Everybody’s heard about the Bird.


          • shecky vegas


          • Bob_Wallace

            (My freshman year in college. Beatles hit later that year and changed the Word.)

  • So, no Gigafactory in Arizona, then?

    If there was any doubt that the “free market” advocates are hypocrites, let go of it.

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