21 June 2017

TESLA > Arizona Administrative Judge Intervenes to Bust-Up Car Dealer Monopoly

Tesla , Inc. (TSLA) Scores Small Win in Arizona
over Direct Sales Model
Published By News Desk at June 19, 2017 08:09 am 
Source: http://smartstocknews.com
[The car company has got the license by the DMV last year] 
Why is Arizona changing its mind? Tesla selected Reno NV for its gigafactory battery factory – bringing thousands of jobs to the state. Tesla is not going to build it in a state where it’s illegal for the company to sell its cars.                    
Tesla Inc. (NASDAQ:TSLA) has been in trouble recently over its direct sales business model which is not allowed in a lot of states.
Here's what reporter Laurie Roberts had to say in an opinion piece a few days ago
Roberts: Tesla gets green light to sell cars in Arizona (no thanks to Gov. Doug Ducey)
Laurie Roberts , The Republic | azcentral.com Published 1:00 p.m. MT June 19, 2017
Updated 24 hours ago
Tesla lovers rejoice.
You now can go to the car manufacturer’s Scottsdale showroom and the Tesla sales staff can tell you how much the cars cost.
They can even sell you one and before they do, you can take a test drive -- all things that were strictly forbidden in Arizona until now.
So who do we have to thank for this innovative breakthrough, allowing a business to actually sell its wares in its store?
Here’s a hint:
Not Gov. Doug Ducey.
And not the Arizona Legislature.
Innovation is great, just not here
Oh, they’re all for innovation. (See: Uber.) Just not when it cuts into the take for major Republican Party contributors
I’m guessing that might have something to do with the fact that car dealers are a major financial force in the state Republican Party.
Tucson car dealer Jim Click is among the state's largest individual contributors to political campaigns. He and his wife gave more than $370,000 to the Republican Party and its candidates in 2014, including nearly $150,000 to get Ducey elected.
That we know of, that is. Ducey enjoyed millions in "dark money" support in 2014 and of course, we aren't allowed to know who those donors were.
Source: http://www.azcentral.com 
The Arizona Capitol Times’ Jeremy Duda is reporting that ADOT was forced to give Tesla a dealer’s license last year after an administrative law judge in July ruled that Tesla can sell its cars directly to consumers.
Judge Jerald Hale ruled that Tesla can’t be denied a license because it has no network of dealers and thus the prohibition against competing with its dealers doesn’t apply.
The Arizona Automobile Dealers Association sued ADOT but a Superior Court judge dismissed the case. Neither the dealers nor ADOT appealed. Probably because the administrative law judge was right.
The automaker has been suffering from weak sales in such states as people have to buy their cars from different states and also don’t get the option to have the luxury of using the service centers of the company for the maintenance of their vehicles.
However, the carmaker had a small victory against people opposing the direct sales model in Arizona.
According to Electrek, Tesla managed to secure a dealer license which the company had got after DMW issued it last year.
The car company has been fighting out the direct sales bill in Arizona, and multiple attempts to make changes to the bill have been unsuccessful for Tesla which made it difficult for its Arizona customers.
According to the report, “Thanks to a dealer license granted last year by the Arizona Department of Transportation, Tesla is now availing itself of opportunities that had long been denied it.
ADOT granted the license Tesla sought after an administrative law judge determined that a law that was widely believed to prohibit it from selling directly to customers didn’t apply to the company.”
The automaker currently is operating two service center and its gallery near Phoenix which it can now serve as full stores after getting the license. Tesla had taken a similar route in Utah as well where the company failed to change the laws regarding the direct sales bill. Hence it went to court to prove that such laws should not apply to it as it does not have any dealership franchise in the state.

Tesla Gets Approval To Sell Its Vehicles In Arizona
Source: http://www.carscoops.com

Arizona and Ohio Legalize Tesla’s Direct-to-Consumer Sales Model by Marc Carter
Source > http://inhabitat.com


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