Tesla Motors Considers Taking Dealership Dispute in States to Federal Level; NADA Throws a Fit

5 years ago by Eric Loveday 8

Tesla Owners Line Up Their Model S Sedans At The Texas Capitol In Support Of Hearing For HB 3351

Tesla Owners Line Up Their Model S Sedans At The Texas Capitol In Support Of Hearing For HB 3351

Tesla Motors’ headline-grabbing battles against dealership associations in Texas, New York, Minnesota, Massachusetts and so on could come to a halt as the automaker considers changing its approach to fighting the matter.

Look Out Congress, Tesla Might be Coming Your Way Soon

Look Out Congress, Tesla Might be Coming Your Way Soon

It seems Tesla CEO Elon Musk is getting tired of battling state-by-state as it seeks to expands its number of “stores” throughout the US.  These tiring ordeals, says Musk, might convince the automaker to take its battle to the federal level.

Yes.  Tesla Motors could duke it out with the big boys in Congress.

As Musk stated:

“If we’re seeing nonstop battles at the state level, rather than fight 20 different state battles, I’d rather fight one federal battle.”

For Musk, a trip to Congress would have two options: lobbying for federal legislation or filing a federal lawsuit against states for restraining interstate commerce.

NADA...The "Voice of the Dealer"...No Wonder NADA is Against Tesla

NADA…The “Voice of the Dealer”…No Wonder NADA is Against Tesla’s Lack of Dealer Setup

Why take it to the federal level?  Well, the obvious answer is money.  Tesla’s Musk says each battle at the state level costs the automaker millions of dollars and if it seems like these battles will continue to pop up in several additional states, then Tesla may have no option but to take it to Congress.

Quoting Musk:

“Obviously, we don’t want to bother Congress at the federal level unless it seems like something that’s a common issue across a large number of states.”

Musk says Tesla is facing opposition in some 20 states right now and claims that the automaker is looking to file bills in several other states soon, but that option is more costly than taking it to Congress.

Of course, news of this Tesla-taking-it federal doesn’t sit well with the National Automobile Dealers Association (NADA).

David Westcott, chairman of NADA, says Tesla going federal would be a “mistake” and adds that “NADA will vigorously defend the franchise system.”  According to NADA, 48 states have restrictions on factory-owned dealerships.

Tesla’s decision to go federal could come by the end of 2013.  If it goes to Congress, then Musk believes the so-called “court of public opinion” will support the automaker’s point of view, rather than siding with the nation’s archaic dealership system.

via Automotive News

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8 responses to "Tesla Motors Considers Taking Dealership Dispute in States to Federal Level; NADA Throws a Fit"

  1. GeorgeS says:

    Bravo.

  2. Nelson says:

    “For Musk, a trip to Congress would have two options: lobbying for federal legislation or filing a federal lawsuit against states for restraining interstate commerce.”

    One or the other or both at the same time?

    NPNS!
    Volt#671

  3. James says:

    This seems like the only logical conclusion to the N.A.D.A.’s persistence
    to fight this in every single state.

    Texas seems a bump in the road what with many decades of cash to
    politicians flowing from auto dealer’s associations. If Tesla can win
    there – it would seem many states just wouldn’t bother with the expense
    of fighting Tesla’s business model of not franshising local independent
    dealers.

    On the surface, it seems an open-and-shut case, but with lined pockets
    and the age-old good ole boy system, Texas might be the impetus Musk
    needs to just take it federal.

  4. Open-Mind says:

    David Westcott, chairman of NADA, says Tesla going federal would be a “mistake” and adds that “NADA will vigorously defend the franchise system.”

    His statement is based on a false premise that Musk is attacking the franchise sales model that NADA has selected. However, Musk simply want to choose a different sales model, and NADA does not want to allow him to do that. So if anyone is doing the attacking, it would appear to be NADA, not Musk.

    IMHO, each car company should be free to choose their own sales model. Ultimately consumers can determine which is best.

  5. Roy_H says:

    Legislators have an interesting option, vote with their pocket book (NADA will bribe all the politicians it can), or vote for the average citizen (who have the power to vote them out of office). So their real question is will public irritation be high enough to make legislators turn down the bribes? Experience has shown that the public has a very short memory in this sort of thing.

    The only chance Tesla has is to drum up a very high awareness so that a large percentage of the population follows this issue. If the politicians feel that all eyes are on them, they will do the right thing.

  6. Martin T says:

    I Wish Mr Musk & Tesla the Very best, his method is breath of fresh air!
    Just hope Congress is not corrupt and gives Tesla a 100% honest WIN!

    1. Roy_H says:

      43% of Congress just voted in favor of more mass killings by refusing to check backgrounds of all gun purchasers. I think every one of these congressmen should be shot in the head, then they would get the mass killing they want and deserve.

      You expect justice and fairness out of this group of idiots? Not one of them has a rational reason for voting against the background checking, but I am sure they all were paid handsomely by the National Gun Association.