There is a huge political argument against the very popular car company tesla. Tesla has used a business tactic of direct sales to their consumers. The benefit to this, is that they don’t need a dealer so they were able to cut out the middle man. However, Tesla might be in trouble because they are in threat of being basically banned from this type of sales. Now tesla has shocked us with stunningly built cars and a business model that they have proved will work. Now their is a petition asking the administration to allow Tesla to sell with their direct sales idea but here is the issue.
There is a ton of states that are backing the idea of no direct sales. How you look at this is your own view, but their is no legal issue with direct sales. Tesla has broken no law, but they are being threatened by unfair competition. The petition needs a lot more signatures before the White House will make an announcement about it, but should they have to? The fact remains Tesla has broken no laws, and the argument is that they are blocking the middle man stopping a potential revenue stream for them. The counter argument, is other car dealers are not restricted, and they are just providing a nice product with great competition.
Why Write About This?
The issue that I saw with this, was that Tesla is trying to be blocked from direct car sales, but why. Why should they be blocked, because it was successful? The issue is I feel that other companies can try to use this as an argument. I feel that Microsoft would try to pull this against Google. How, I don’t know, but they would try to slander their name and promote their own in the process. The problem has brought a lot of attention to the company, and a lot of hate for the law that they are trying to pass. However, the support for Tesla is growing, and I have no doubt that they could pass this bill against Tesla.
White House Petition
This petition is around 1/3 of the required people for an official response to be given. I signed it along with other tech sites are also reporting about these petitions. These sites include CNET, Mashable, The Car Connection, and others and we are all basically on the same page, and that is that the people are siding with Tesla on this argument.
Sign the petition here: