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Update on the Salt Lake City Tesla store turmoil

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I heard back from the bill's sponsor, Representative Coleman, earlier this evening. Here's what she said (posted with her permission):

+++++
Tesla originally agreed to the current bill provisions and simply changed
their minds. The suit was filed almost a year ago, so it isn’t a response
to the current bill. While they may not support the bill, it will allow
them to do everything they do and want to do. It also helps other
companies in opening the door in Utah to direct sales. I view this as a
first step, not a definitive final bill. This should be heard on
Wednesday.
+++++

Utah State Legislature

HB 384: Legalizing Direct Sales for Tesla, Vanderhall, and Other Manufacturers Libertas Institute | Advancing the cause of liberty in Utah
 
Interesting to read the full text of the bill. I think people have been confusing two separate classifications that the bill allows. There are "online dealers", which Tesla would qualify as, and "small manufacturer dealers" which sell less than 300 cars a year. As on online dealer, Tesla would not be restricted in the number of cars they sell, but all the transactions would have to be done online. They could not sell inventory vehicles other than selling a vehicle that was previously used as a display vehicle. Last year's bill appeared to limit the number of vehicles that could be used as display vehicles (and subsequently sold) to 6 per year, but I did not immediately find that restriction in this year's bill.
 
I heard back from the bill's sponsor, Representative Coleman, earlier this evening. Here's what she said (posted with her permission):

+++++
Tesla originally agreed to the current bill provisions and simply changed
their minds. The suit was filed almost a year ago, so it isn’t a response
to the current bill. While they may not support the bill, it will allow
them to do everything they do and want to do. It also helps other
companies in opening the door in Utah to direct sales. I view this as a
first step, not a definitive final bill. This should be heard on
Wednesday.
+++++

Utah State Legislature

HB 384: Legalizing Direct Sales for Tesla, Vanderhall, and Other Manufacturers Libertas Institute | Advancing the cause of liberty in Utah

And this is why I dislike politicians so much. So fast and loose with the truth. No, Tesla was not fine with the current bill provisions a year ago. I'm sure it plays better with people when she says that and makes her look oh so much more innocent, but it's simply not true. And it definitely does not allow them to do much of anything, much less 'everything they do and want to do'.

However, in China they can. No silly restrictions on inventory or where cars are sold. But it appears Utah is a little less pro-free trade than China. #ironic

Screen Shot 2016-02-29 at 12.41.07 PM.png
 
Sorry see the bill being withdrawn.

Those with a strong stomach might want to hold their nose and read through some of the terribly uninformed comments to the story.

Tesla bill dies after car dealers couldn't make a deal | The Salt Lake Tribune

The withdrawal of the bill is the best possible outcome. Now the case before the Utah Supreme Court is allowed to go forward, where Tesla believes they will prevail. Tesla maintains that the current law does not exclude them and is asking the courts to agree. This was the outcome we wanted.

(Tesla is not a dealership franchisee, the laws are intended to apply to the relationship between franchisee and manufacturer, therefore if they are not in that relationship, doesn't apply. The bill amendment created new classifications, such as online dealer, that would have created unnecessary trade constraints.)
 
The problem is this doesn't really change anything. I can already order online and have the car sent to my house. Tesla still can't have me sign paperwork at the store, or handle my taxes and registration, I still have to go to the DMV myself. It won't allow them to hold or sell stock.

I think the only thing it changes is that they would now be limited in how many cars they can sell. How is that any progress?