Tesla Motors Inc (NASDAQ:TSLA) may be able to directly sell its cars to consumers in the state of Connecticut as the state is considering allowing this. A new bill for the said purpose is scheduled to be raised that will support direct sales model bypassing the practice of using independent franchise dealerships that turn out to be family owned businesses in most of the cases.
Public hearing soon
For a public hearing on the issue a bill will be raised on Wednesday by a panel lead by Rep. Tony Guerrera, a Democratic co-chairman of the Legislature’s Transportation Committee. “I think it’s something we need to talk about and have a conversation about it, and have experts tell us why it’s good and why it’s not good,” Guerrera said. He, further, informed that the electric vehicle made in America are growing in popularity among the consumers.
The vehicle manufacturers are prevented from being retailers by the laws of several states including Connecticut. The license for a state dealership in Connecticut was denied to Tesla Motors Inc (NASDAQ:TSLA) though it was allowed to have a repair facility in Milford. A dealership license for operating its own store in Connecticut is something that the company hopes to receive in the future.
Tesla changing the traditional system
At present, there are 20 states that have Tesla stores. Many states are presently debating over the topic whether or not to allow direct sales model of Tesla.
Tesla was allowed to open five dealerships through a legislation signed by Pennsylvania Gov. Tom Corbett last year. On the contrary, a law was signed last year by Gov. Rick Snyder in Michigan that favored franchised dealerships. In another instance, the highest court in the state of Massachusetts rejected a lawsuit by Massachusetts State Automobile Dealers Association to block Tesla from making direct sales to customers. A mall is located in Massachusetts where Tesla Motors Inc (NASDAQ:TSLA) cars are being sold.
“This is Tesla trying to introduce new technology, frankly what we believe to be a superior technology,” James Chen, vice president for regulatory affairs at Tesla. “The dealers should be embracing the idea of an American company trying to come in.”