NY legislation to block Tesla direct sales

[RobStark]

I wonder if these agreements limit the size of exciting stores, squeezing a Model S, X & Gen III is going to be pretty tight if they can't add Sq feet in a couple years, curios how this plays out long term.

Somehow I doubt they will limit square footage but the cars for test drives are outside in the parking lots.

In a few years Tesla will be in a stronger position.

More people will be affected by what happens with the Model E than just the Model S.

The dealers claim the consumers are left unprotected on warranty and safety issues will prove bogus.

And NY will probably have a Gov. that is not the dealers association stooge.

Surfing the net a few sources say Tesla will be able to add stores but neither Cuomo's office nor Tesla have confirmed how many new stores will be allowed.

http://www.crainsnewyork.com/articl...29853/tesla-reaches-deal-with-ny-auto-dealers

 

[adiggs]

Tesla reaches deal to keep selling in New York - Mar. 29, 2014

This article says continue to operate existing stores, but no new ones. Article also concludes that Tesla intends to go with dealerships in the future.

My conclusion is that Tesla may have decided that New York is adequately covered by the existing stores period, or is well enough covered for several years, and can revisit the law at some point in the future.

 

[RobStark]

My conclusion is that Tesla may have decided that New York is adequately covered by the existing stores period, or is well enough covered for several years, and can revisit the law at some point in the future.

I have generally agreed with this thesis about other states when Tesla agrees to a limit on stores.


But all of Tesla's NY stores are in the Greater New York City area, in the City itself or its suburbs. Nothing upstate.

 

[JRP3]

Yes, they really need something in Syracuse, Binghamton, or Rochester. I guess they can still do a "showroom" instead of a "store".

 

[ItsNotAboutTheMoney]

Somehow I doubt they will limit square footage but the cars for test drives are outside in the parking lots.

In a few years Tesla will be in a stronger position.

More people will be affected by what happens with the Model E than just the Model S.

Exactly. If Tesla is around in 2018, with a Model E and Model Y near price targets coming, with a much larger potential customer base, the media would love the running story and there would be a lot of angry money.

 

[Norbert]

Tesla reaches deal to keep selling in New York - Mar. 29, 2014

This article says continue to operate existing stores, but no new ones. Article also concludes that Tesla intends to go with dealerships in the future.

It does say that, but in this regard it contradicts the article linked above, in RobStark's post. Also, I doubt Tesla would be "happy" to go through franchised dealerships in the future, so I think this article just misunderstood that point. Probably another case of confusing "licensed dealerships" (which Tesla's stores are in many cases) with "franchised dealerships" (which Tesla does not want, and does not have).

According to the article above, it sounds more like Tesla will be allowed to have more direct sales stores.

- - - Updated - - -

Tesla reaches deal to keep selling in New York - Mar. 29, 2014

"Today's agreement reaffirms New York's long-standing commitment to the dealer franchise system, while making sure New York remains a leader in spurring innovative businesses and encouraging zero emissions vehicle sales," Mr. Cuomo said in the statement.

It appears politician are yet to find out that this "commitment" is not based on the voters intent, but only on lobby politics.

 

[RobStark]

• Mark Clothier
• Bloomberg News

Tesla Motors Inc. and New York auto dealer lobbying groups reached an agreement that allows the electric-car maker to keep its five company-owned stores in the state and add others, Governor Andrew Cuomo announced Friday.

The “agreement reaffirms New York’s long-standing commitment to the dealer franchise system, while making sure New York remains a leader in spurring innovative businesses and encouraging zero emissions vehicle sales,” Cuomo said in a statement. Legislation in New York will be introduced “in the near future” to implement the agreement, said Cuomo, a 56-year- old Democrat. The statement didn’t say how many other stores would be added.








From The Detroit News: http://www.detroitnews.com/article/20140329/AUTO01/303290038#ixzz2xPK6jhhv

 

[adiggs]

I am readily persuadable that CNN got some facts wrong about the agreement in New York I can understand Tesla agreeing to having the option to open additional stores that would provide them the geographic coverage they desire, even if it's minimal coverage. Hard for me to see them accepting less. That gets them several years down the road with less stress and bother, and gives everybody more time to get accustomed to Tesla's business model.