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California dealers file complaint about the Tesla referral program

Discussion in 'News' started by yobigd20, Aug 31, 2015.

  1. yobigd20

    yobigd20 Well-Known Member

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  2. Panoz

    Panoz Member

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    Geez Louise..when will the madness end?
     
  3. 4SUPER9

    4SUPER9 Active Member

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    I wonder if there is some validity to their argument. If such a law does exist, and there is no legitimate loophole, TM may have to change the program.
    Personally, if the law from 1968 states what that article claims, then that sucks. Good luck changing it though.
     
  4. 78Lion

    78Lion Member

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    It is birddogging according to Virginia law. If other states have similarly written law, Tesla will have to stop it. The fact that the law is pretty stupid doesn't matter.
     
  5. Krugerrand

    Krugerrand Active Member

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    It just keeps getting funnier and funnier.
     
  6. Objective1

    Objective1 Member

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    Tesla, like Uber and Airbnb, is doing a nice job of showing how over-regulated we are. Most of us adults are not allowed to be, well, adults, and rent our rooms if we want to our accept a recommendation to buy if we want to.

    For what its worth, it sounds like the dealers have the law on their side. It's an unjust law, but if you think so, don't just make a Tesla exception, take exception in general.
     
  7. nathanharman

    nathanharman Member

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    Has there been any legal challenge to the referral program outside the US?
     
  8. brianman

    brianman Burrito Founder

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    Tesla: <do anything>
    Auto Dealers: Here are the laws that should be repealed or significantly modified, because clearly they are at best "simply stale".


    It's quite nice of the dealers to do the research and push the issue for Tesla.
     
  9. drinkerofkoolaid

    drinkerofkoolaid Active Member

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    The more the dealers try to block or complain about Tesla Motors, the more people are going to want to buy a Tesla. The dealers are basically handing Tesla a ton of free positive press :biggrin:
     
  10. AB4EJ

    AB4EJ Member

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    Tesla could probably solve all this by simply adding the phrase "Void where prohibited by law" to the terms, just like has been used with many giveaways, sweepstakes, lotteries, etc., etc., over the years.

    Still I can't help but wonder: if Tesla really can sell all the cars they can build ("production constrained") - why do they feel the need to try and further pump up sales by having an incentives program? Sounds like sales demand is starting to soften. What do you think?
     
  11. Spidy

    Spidy Member

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    I think it's funny how people complain about dealers here. I bet they would love to run similar programs themselves...

    Americans really seem to hate certain professions, unions etc. and then no matter what they do it's all bad.
     
  12. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

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    Demand hasn't softened, it's just harder to increase it. (I remember when people thought they'd only sell 8-9k per year.) But that's just with the S. The X isn't out yet.
     
  13. S'toon

    S'toon Knows where his towel is

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    http://www.autoblog.com/2014/06/03/americans-hate-car-shopping-so-rather-give-up-sex-do-taxes/
     
  14. GoBlue88

    GoBlue88 Member

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    I hope they don't do this in California. I have one referral in!
     
  15. AB4EJ

    AB4EJ Member

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    OK, I think I get it. Maybe Tesla thinks that orders for the Model S may slow down once the Model X starts shipping, and they want to keep demand up.

    Now, if a few states determine that this is illegal due to state law, would that also bar other reward programs? For example, DirecTV has been running a promotion for years where you can get $100 for referring a new customer to them; this is pretty much the same thing as the Tesla offer.
     
  16. AB4EJ

    AB4EJ Member

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    Now, if a few states determine that this is illegal due to state law, would that also bar other reward programs? For example, DirecTV has been running a promotion for years where you can get $100 for referring a new customer to them; this is pretty much the same thing as the Tesla offer isn't it?
     
  17. yobigd20

    yobigd20 Well-Known Member

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    I thought it only applied to automotive referral sales
     
  18. JustSam

    JustSam Member

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    The comment below the article from SeeThrough really irked me!

    "See ThroughSeptember 1, 2015 at 1:25 am
    “Tesla Motors does not have independent dealer network, so we understand that the referral program doesn’t harm any actual consumers or dealers.”
    LOL!. How did the author understand this? Current Tesla owners and shareholders could be lying through their teeth to earn free money, misrepresenting facts and turning wishes into facts. People buying $100K lemons on twisted realities are harmed beyond repair.
    Why is it that Tesla has to do everything illegally? Can they do anything without bending the laws? From accounting gimmicks to scamming the tax payers, to crying out loud at the door steps of white house(begging Obama to twist China government policies), this company has done it all. And all the while claiming that it is “production constrained”.

    Response: I don't think I would 'talk-up' my car if I wasn't as into it, and ultimately, your referral does not mean it's absolutely a sale so it's up to the 'friend/family/associate' to decide to go for it or not. $1K to an owner who had spent $100K is NOT an incentive to lie! My rep is at stake too...

    Ask all Tesla owners to see who do not like their car and would not boast about it?! It's a beautiful piece of work - and that is why we refer!!!

    Ok, rant off..happy hump day all!
     
  19. Herbys

    Herbys Member

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    I am not a lawyer but the text quoted in the article says that "arranging a sale without a license" is illegal. But giving a referral is not arranging a sale. You are not participating in the sale at all. You are just sending them a candidate. If their interpretation of the law was correct I would presume any publicity not done directly by a dealership (or some other licensed entity) would be illegal. And to my knowledge, that is not the case. Again, IANAL, but this doesn't resist much rational analysis.
     

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