» Politics and other things

Right hypocrisy and so-called free markets

(14 posts)
  • Started 5 years ago by Vitalogy
  • Latest reply from Alfredo_T

  1. Vitalogy

    Tesla lashed out at New Jersey Governor Chris Christie for backing a proposal that would force the automaker to sell its electric cars through dealers in the state, instead of directly to the consumer.
    Tesla has been selling directly to shoppers in New Jersey for about a year, having sold 500 cars.

    But the New Jersey Motor Vehicle Commission is considering a proposal at a meeting in Trenton on Tuesday that would block automakers from selling to consumers.

    "This is an affront to the very concept of a free market," Tesla Motors (TSLA) said in a blog post on Tuesday.

    "This new rule, if adopted, would curtail Tesla's sales operations and jeopardize our existing retail licenses in the state," said Tesla's post. "Having previously issued two dealer licenses to Tesla, this regulation would be a complete reversal to the long standing position of NJMVC on Tesla's stores."

    Posted on March 11, 2014 - 11:26 AM #
  2. Skybill9

    IIRC there was another state the wouldn't let Tesla sell directly to the consumer also. Maybe one of the Carolina's?

    Posted on March 11, 2014 - 11:38 AM #
  3. Amus

    You can bet that the Automobile Dealers Association is behind this.

    There is no such thing as a free marketplace.

    Posted on March 11, 2014 - 11:43 AM #
  4. Skybill9

    "You can bet that the Automobile Dealers Association is behind this."


    Posted on March 11, 2014 - 11:49 AM #
  5. Alfredo_T

    What I got out of this story is that New Jersey law requires that cars be sold by independently-owned dealerships. Tesla Motors was able to sneak in "under the radar" somehow and open two illegal dealerships.

    The reasons given regarding how dealerships protect consumers sound like BS to me.

    Posted on March 11, 2014 - 11:52 AM #
  6. duxrule

    I believe Tesla is having the same fight in Washington state.

    Posted on March 11, 2014 - 12:10 PM #
  7. missing_kskd

    One other State is Texass

    Tesla can have very little branded operations there. They are selling cars anyway. People just take delivery from somewhere else.

    Personally, I'm ok with the dealer model, but I do not see it as exclusive at all. Direct sales make a lot of sense for some vehicles, just as those same sales often make sense in many other industries.

    In my own niche, some software companies only use VAR or dealer models. Channel sales, in other words. Others use a mix, including direct. There are advantages all around, depending on what is being sold and why.

    In the case of Tesla, the tech in the car is advanced. Chances are the average dealer is not qualified to deal with the car. An investment to get them there would hurt consumers too. No real return there, which is exactly why Tesla isn't using dealers.l

    I like fair markets, and those are different from ideologically pure free markets. I like competition when it adds value too. Prefer it actually. In this case the competition moves up the chain, and the dealers are simply inserting themselves where thry don't also add value. What they should be doing is upping their game, not devaluing what Tesla offers.

    This would be a lot like forcing Apple to give up it's end to end control of it's products so that the rest of the industry would not be competing with Apple. Doing that is a form of collusion, which results in higher prices, or diluted value fo no reason, other than the ones not competing well feel better about it all.

    Posted on March 11, 2014 - 12:23 PM #
  8. Vitalogy

    From the article Dux posted:

    "Chen said he considers the legislation ironic under the circumstances: ”Here is Washington state, the leader in seeking clean power, clean air, clean water, and standing for innovation in technology, the home of, and yet there’s legislation that is basically stifling an innovative car company, an American car company, that is trying to get us off our dependence on foreign oil and reduce the emissions profile of the light duty vehicles,” he said.

    “You’re looking at basically a special interest group, the dealers, trying to establish through the law a monopoly on how consumers can purchase products,” Chen said.

    The original intent of these types of regulations was to prevent auto manufacturers from competing with their own licensed dealers, he explained, but Tesla sells direct to consumers and isn’t competing with its own licensed dealers when it opens its own stores."

    My question is, why is it always Republicans pushing for this kind of thing in various states?

    Posted on March 11, 2014 - 01:21 PM #
  9. kennewickman

    Its all about money you know...the 'middle man "...add 15% to the price ! or more..and to a Tesla..well I think they start about 70 k dont they ?

    Posted on March 11, 2014 - 02:10 PM #
  10. NoParty

    Aren't CONs all for the free market? More CON hypocrisy!

    Posted on March 11, 2014 - 04:47 PM #