US Senator Supports Tesla's Direct Sales Model

[Curt Renz]

This morning on CNBC US Senator Marco Rubio of Florida strongly argued the case supporting Tesla Motors' direct sales model: Sen Rubio: Allow Tesla to sell direct to consumers

 

[ggies07]

So we have Newt Gingrich, Ricky Perry, and now Marco Rubio all on Tesla's side. I can't believe it......but I like it. Now it makes Christie look even more pathetic.

 

[rolosrevenge]

It's easy to believe that people who claim to support free markets would support a free market model. It really makes Christie look like a hypocrite.

 

[AlMc]

It's easy to believe that people who claim to support free markets would support a free market model. It really makes Christie look like a hypocrite.

CC is playing this for political purposes. He has thrown this ball of wax into the legislature's lap and appeased the car dealers at the same time. If the legislature passes a pro Tesla/free market bill he will sign it and let the dealers blame the legislature and tell everyone that he is for free markets and forced the legislature to change an antiquated law.

Curt: Emailed both my US Senators and asked for their support... (Carper and Koons)

 

[RobStark]

From the leading journal of Conservative thought National Review;

Tesla’s New Jersey Problem: Time to End Auto Dealers’ Plaid-Jacketed Cabal By Veronique de Rugy


I am no ally of Elon Musk’s. I have spent a lot of energy criticizing his companies, such as Tesla Motors, for accepting wasteful tax subsidies and government handouts under the guise of “green investment.” But I’m taking his side today, against the New Jersey state government’s incredible anti-competitive actions on behalf of the Garden State’s car dealerships.

If you think you can’t stand car salesmen’s antics now, just wait until you learn about the political shenanigans that these grinning auto peddlers use to squash competition and keep prices high.
This week, the New Jersey Motor Vehicle Commission approved new rules for new-motor-vehicle sales, prohibiting non-franchised, non-state-licensed businesses from selling cars in the state. Lacking any franchises or state licenses, Tesla was an obvious target of this shameless concealed cronyism — it will end all electric car sales in New Jersey next month.

Why did Tesla incur such wrath? Rejecting the outdated dealership model, Tesla instead aimed to sell their cars directly to their customers through their retail stores. But the company’s innovative distribution model proved too competitive for yellow-bellied market incumbents. The Wall Street Journal explains:

 

[Curt Renz]

So we have Newt Gingrich, Ricky Perry, and now Marco Rubio all on Tesla's side. I can't believe it......but I like it. Now it makes Christie look even more pathetic.

“There is no rational justification for the state to intervene and impose an obsolete business model on a 21st century startup. But the car dealers want to co-opt the law to protect their profits,” Gingrich wrote in a message emailed to his supporters. “In New Jersey, Governor Chris Christie now faces an important choice about whether to passively defend the past or to actively fight for the future.”

 

[NigelM]

This morning on CNBC US Senator Marco Rubio of Florida strongly argued the case supporting Tesla Motors' direct sales model: Sen Rubio: Allow Tesla to sell direct to consumers

I'll just note that Teslas are an increasingly common sight here in Florida, especially in Miami (where Rubio lives IIRC). Model S is popular in FL, Rubio knows that and he's a politician after all.

 

[rjcbox]

“There is no rational justification for the state to intervene and impose an obsolete business model on a 21st century startup. But the car dealers want to co-opt the law to protect their profits,” Gingrich wrote in a message emailed to his supporters. “In New Jersey, Governor Chris Christie now faces an important choice about whether to passively defend the past or to actively fight for the future.”

I called Christie's office last week. His aid said he does not have a position in the Tesla matter at this time.

 

[Doug_G]

I called Christie's office last week. His aid said he does not have a position in the Tesla matter at this time.

Plausible deniability. Implausible actually.

 

[AlMc]

I called Christie's office last week. His aid said he does not have a position in the Tesla matter at this time.

This is exactly what you would expect him to say. It may be implausible, but so are most politician's statements. He basically has said that his job is to uphold the law (so deny TM sales) and it is the legislature's job to remediate with a new law(s). So, he has dropped the hot potato off to them. While none of us believe him, he will sign the bill (if there is one) saying it is the people's will and let the auto dealers blame the legislature.