Tesla Motors Sued By Car Dealers

An anonymous reader writes "Car dealers in New York and Massachusetts have filed a lawsuit that seeks to block Tesla from selling its pricey electric vehicles in those states. The dealers say they are defending state franchise laws, which require manufacturers to sell cars through dealers they do not own. Robert O'Koniewski of the Massachusetts State Automobile Dealers Association says, 'Those dealers are investing millions of dollars in their franchises to make sure they comply with their franchise agreements with the manufacturers. Tesla is choosing to ignore the law and then is choosing to play outside that system.'"

Comments

Fuck those greedy bastards.

[LeAzzholeChef]

They cant sue under the franchise laws. Because the law is under combustible motors. It never included electric driven vehicles. Therefore this case should be thrown out of court on grounds of greed and control.

Re:Fuck those greedy bastards.

[WaywardGeek]

Since down below there's a bunch of PO-ed Romney supporters bashing Obama rather than talking about Tesla being sued, I find replying to Combustible Motors more on-topic!

Getting back to TFA, Tesla does not have stores selling Telsa's in those states. Instead, you buy them over the Internet. All Tesla has is showrooms where they can explain their story to people, but they can't sell cars. Tesla believes, and I agree, that this avoids running afoul of dealer franchise laws. Frankly, I don't see how these dealers can explain why it is illegal for people in New York to buy a car over the Internet, or why it is illegal for Tesla to have showrooms in malls. Laws to protect car dealers could only have been sold to state legislatures by used car salesmen. I hope these lawsuits crash and burn.

Dealers are a textbook case of rent-seeking

[realinvalidname]

http://en.wikipedia.org/wiki/Rent-seeking

Re:Translation:

[radish]

I'm a consumer. I buy things not because of salespeople but despite them. Buying a car is one of the least pleasant things I ever have to do, and that's entirely because of the salespeople and the dealer model. I would almost certainly buy more new cars (thus boosting the economy and helping to employ more people who actually, you know, make things) if I didn't have to go to a dealer to do it. Just let me browse & compare online, with accurate prices, and pick what I want for delivery. You know, like I do for EVERY OTHER DAMN PRODUCT I BUY. The dealer adds precisely zero value, in fact the dealer removes value, and does so at a high cost to me. Shut em all down.