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Tesla Direct-To-Consumer Sales Coming To Arizona? | DrivingSales News

Tesla Direct-To-Consumer Sales Coming To Arizona?

February 6, 2015 0 Comments

Tesla Motors waged public legal battles in a number of states in 2014 including New Jersey, Georgia and Michigan. However, as the calendar inches into 2015, the California based electric car manufacturer may have its fortunes reversing in Arizona. The Grand Canyon State currently outlaws Tesla’s direct-to-consumer sales, but a new piece of legislation is aiming to change that.

The House Commerce Committee for the state of Arizona advanced HB 2216 by a 5-3 vote Wednesday. A bill on this subject stalled in the State Senate last April. Following the failed legislation, Tesla released a statement showing a lot of dissatisfaction and vowed to be back. That statement from Tesla read in part, “Eventually, as a result of the dealer led attacks, the bill ran out of time in a legislative session that was dominated by budget wrangling and subsequently cut short. We look forward to re-engaging next year.”

This year, they appear to be back in terms of having a bill advancing in the legislature that supports their organization. The Pro-Tesla Lobby is also active in Arizona. Barry Aarons, a lobbyist for Tesla Motors, was quoted in an AP report saying, “This bill is not designed to damage the existing system. It is designed to supplement what currently exists.” That same AP write-up quoted, Jim Norton, who represents the Arizona Automobile Dealers Association, who said that this bill really goes against how things have worked for a while. Norton said, “What you are doing with this bill, is basically saying all those rules that have been developed over 100-plus years no longer apply to you.”

Those rules that Norton is talking about are of course the state law requiring vehicles to be sold via franchised dealerships.

Arizona currently has 18 supercharger stations as well as one Tesla repair facility and one showroom. If the bill is enacted the showroom will become an active site for direct-to-consumer sales. How long do you think Tesla will continue this fight at the state level? Do you think that the organization will push for federal law changes instead of pursing state-by-state legislative changes? Would you sell Tesla vehicles at your store?

About the Author:

The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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