New Indiana House Bill Would Impede Tesla’s Direct Sales Model
Following unsuccessful attempts last year to limit Tesla’s ability to sell directly to customers in the state, pro-dealership forces in Indiana have already begun this year’s anti-Tesla efforts. … The newly proposed House Bill 1592 (authored by Representative Edmond Soliday) would effectively stop Tesla from selling within the state by 2019 (based on a couple of somewhat flexible assumptions).
The exact provisions of the proposed bill are: the prevention of legal direct sales in the state after “(1) reaching 1,000 units in cumulative annual sales; or (2) 6 years after the initial dealer’s license is granted.”
So, the proposed bill features somewhat more leeway to it than many anti-Tesla (or anti direct sales) measures, but would still effectively work against auto manufacturers to the benefit of the entrenched auto dealerships.
Autoblog provides some background: “The effort marks the second of its kind in the Hoosier State during the past year. Last February, the state proposed House Bill 1254. With a provision that would force Tesla’s dealer license to expire 30 months after being granted, Tesla would have had to stop selling electric vehicles to the Indiana public last July. The company has one store in Indianapolis.”
The new proposal follows closely on a number of other legal measures taken against, or involving, Tesla. Considering that the launch of the Tesla Model 3 is fast approaching, it’ll be interesting to see how things pan out. For a brief overview of recent news, see:
- Indiana Moves Forward On GM-Written Bill To Make Tesla Sales Illegal
- Tesla Asks Utah Supreme Court To Approve Direct Sales
- Tesla Gains Ground In Connecticut
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