Legislation to Lift Ban on Tesla Sales in Maryland - Hearing on Feb. 19, 2015

[wws]

GMs lawyers seemed to be fairly unprepared. They really had some nerve talking about how great they were in the electric car market with the EV-1, when it was them crushing the EV-1s that led to the founders of Tesla to start their new company! (Cue Mark Tarpennings presentations...)

(I should note that as one who owns four GM vehicles, I am not totally anti-GM. Just that I think laws like these which prevent new competitive models are bad for both innovator and consumer. Cue Ayn Rand...)

 

[mostapasta]

That video is painful to watch, but I'm glad Tesla seems to be getting more support overall.

What is the next step? Will there be a vote of some sort soon?

 

[Firewired]

Can anyone venture why they think GM would come out against this, particularly when the state dealers association has agreed to the terms?

 

[Cosmacelf]

Can anyone venture why they think GM would come out against this, particularly when the state dealers association has agreed to the terms?

Because they are idiots? But yeah, not obvious why they argued against it...

 

[andrewket]

Because they are idiots? But yeah, not obvious why they argued against it...

Slow down Tesla so they can catch up. Decrease the amount of time the Model 3 is out before the Bolt.

 

[ggies07]

Slow down Tesla so they can catch up. Decrease the amount of time the Model 3 is out before the Bolt.

Yesir. They are sacred and showing it. They might want to try a little harder and hide that fact. Hahaha

 

[TexasEV]

Can anyone venture why they think GM would come out against this, particularly when the state dealers association has agreed to the terms?

Because if GM is burdened by having to sell through franchised dealers, they want their competitors to have that same handicap.

 

[Lanny]

The bill passed!

Due to what appears to have been some last minute wrangling over the number of dealer's licenses that will be allowed, the Maryland General Assembly voted with just minutes to spare before the 2015 session ended at midnight.

My interpretation is that Tesla will be able to sell at up to four locations in Maryland. The sponsor and the Maryland Dealers Association had negotiated to allow Tesla up to six locations. GM lobbied to limit it to two. It's not perfect, but it sure beats nothing and having to wait until 2016 to try again. Great job TMC members boberd and jcadman22 who went to Annapolis in February to support the legislation and made calls yesterday afternoon to Senators urging them to vote yes on HB 235.

Special kudos to Maryland Delegate Kirill Reznik (@DelegateReznik) who is a Tesla fan and initiated this bill and gathered support in both chambers and got it passed against all odds. Well done sir!

Lanny

 

[andrewket]

Excellent! I like it when common sense prevails, which sadly doesn't happen >50% of the time, or so it seems.

 

[thedaysbetween]

Maryland's new motto: "We're not West Virginia!"

 

[3PHASE]

One of the surprises at last weekend's Reach the Beach event in Ocean City, put on by the Tesla Road Trip team, is this presentation by the sponsor of the bill, Maryland Delegate Kirill Reznik (@DelegateReznik). It was a great talk and put into perspective how close the passing of this bill really was. It went down to the final minutes of the session.

 

[Lanny]

Maryland Gov. Hogan is scheduled to sign the bill into law tomorrow, May 12th. The law will be effective October 1, 2015.

Lanny

 

[yobigd20]

CNBC Now on Twitter: BREAKING: Maryland Governor to sign bill allowing Tesla to make direct car sales.

 

[Ubbe]

Great news, saner minds prevailed! What surprises me, as an outside observant here in Sweden, that it's even an issue. You would think that everyone would be onboard to help a new promising manufacturing company to flourish! Those aren't growing on trees exactly.

And then there's the small issue of real, robust competition on an level playing field. Should be a no-brainer?
Dealers should be able to carve out a living even if all manufacturers where able to sell directly -if dealers added value...

 

[dsm363]

I don't understand the 'it's legal but can only have 4 stores' compromise that goes on with these bills. Like they would limit Apple or Best Buy to only a few stores.

Still, great news and Tesla doesn't need more that 4 stores there anyway for now.

 

[adiggs]

I don't understand the 'it's legal but can only have 4 stores' compromise that goes on with these bills. Like they would limit Apple or Best Buy to only a few stores.

Still, great news and Tesla doesn't need more that 4 stores there anyway for now.

I'm with you @dsm, but I take solace in the belief that its fine for Tesla for now, and in a few years when they start straining at the seams with only 4 stores, there will also be such widespread awareness of the company, that the corresponding awareness of the ridiculous restriction they're working under will make life very unpleasant for politicians that take the dealerships money and support that status quo.

This is sort of like letting a trickle of water come through the dam because its really insignificant and just not worth the expense to fix Let that leak go, and the dam is coming down - your ONLY chance to stop the dam from being torn apart is to not let it leak at all.

 

[Lanny]

Watching the Governor Sign the Maryland Tesla Bill

Some photos of the Maryland Tesla bill signing ceremony.

The Governor handed us this pen after he signed the bill.

More photos and details: Watching the Governor Sign the Maryland Tesla Bill

Lanny

 

[kuttakamina]

Really dumb question, while I am thrilled to see restrictions lifted off of Tesla encouraging fair competition, I don't understand what this means for the consumer in MD.
A consumer in MD could already purchase the car online, check it out/test drive it etc. at Malls. What difference does it now make that Tesla can have direct sales?
Sorry I know dumb Q.

 

[RobStark]

A consumer in MD could already purchase the car online, check it out/test drive it etc. at Malls. What difference does it now make that Tesla can have direct sales?
Sorry I know dumb Q.

Customer could not have a test drive(had to go to DC or Virginia). Could not discuss price. Could not discuss financing at the "Galleries" in Maryland malls.

Tesla could not register the car,pay the appropriate taxes and such before delivery.

Customer had to pay Tesla direct in CA. Had to arrange transportation to Maryland. Had to go to DMV office to register and pay tax. Now Tesla can do all that at Maryland "Stores." Generally, a PITA non- hardcore Tesla enthusiast won't do. Pushes people to just get a MB or Lexus instead.

 

[djplong]

I'm VERY glad to read this. Funny thing is, I'm in Maryland right now (I live in NH). We're here scoping out the area to possibly relocate here in a few years. This is just one more in the 'plus' column.