Tesla wants its customers to support the company to continue "direct vehicle sales".
The Palo Alto Calif. firm has recently disbursed a letter to Indiana’s “Tesla Owners and Enthusiasts” and urged them to oppose a probable fragment of legislation, which is likely to put the bar on “direct vehicle sales” for the company.
The luxury electric carmaker has purported that the implementation of the new bill will rescind its permission of selling vehicles directly to customers in Indianapolis storefront. This is not the first time that the Californian firm is facing a bit of hindrance in its business model, as it has already witnessed resistance in states like Arizona, New Jersey, Texas, and Virginia.
In compliance with the bill, December 31, 2017, manufacturers will not be able to possess a “dealer license.” Tesla, in the said letter, has compelled its customers to contact with the senators and representatives for the hearing on Thursday, February 25, 2016, on Commerce and Technology Committee and record their discontentment at the new bill.
In the letter, Tesla Motors bluntly blamed the Michigan-based General Motors for coaxing the Senate Committee to bar Tesla’s lawful activities. The letter says that the rival has forced the senate to introduce such restriction even though the automobile giant has contributed over $42 million to the state through the purchases from Indiana suppliers of components.
The company also had a plan to develop a 26,000 sq. ft. Tesla Service facility in Indiana, which would employ Indiana residents to serve its customers. However, the $25 billion organization has no hardcore evidence against GM.
Will Nicholas, a Tesla spokesman, expressed that since December 2013, the electric carmaker had been running its Fashion Mall storefront. He added that it hasn’t yet started the Tesla Service Facility but the legislations like these may bring doubts for the company to further invest or not. The future of the proposed projects may dangle in the middle.
The main author of the legislation, Rep. Kevin Mahan, was not able to comment on the matter whereas the following response was received from GM on the matter, “GM supports HB 1254. GM believes that all industry participants should operate under the same rules and requirements on fundamental issues that govern how we sell, service and market our products.”
GM also said that one of the advantages of network, comprising thousands of dealerships, is that the customers of General Motors would not possibly have to take the toll of driving to states to buy their vehicles.
It also stated that Tesla could have reacted to the law by opening a franchised dealership in Indiana, which could have an independent operator but the Silicon Valley business reacted by asking the state to treat it with special exceptions and rules. GM also pressed that the automobile behemoth, in Virginia, was keen on agreeing to a dealership model; therefore, no special exemption should be created in Indiana.
Last month, at the panel hosted by Federal Trade Commission, Tesla had its lawyer to support the company’s current practice of direct vehicle sales. The conflict of interests between the company seeking for license to sell directly to the customers and the dealership supporters is likely to continue for a while.
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