Skip to comments.Tesla takes on car dealers in a fight to the death
Posted on 03/12/2014 7:10:42 PM PDT by Brad from Tennessee
Tesla Motors, the California-based electric-car start-up, is anything but an epitome of American-style free-market entrepreneurship.
Its Model S performed and sold better than many critics, this one included, expected. Ditto for its stock price, which is more than $240 per share, though the companys market capitalization of nearly $29 billion half that of Ford strikes many critics, this one included, as unsustainable.
But Teslas success would have been impossible without a big assist from government: a $465 million, low-interest Energy Department loan (since repaid); substantial tax credits for purchasers; tens of millions of dollars worth of air-pollution credits awarded by California regulators to Tesla and sold to competitors who, under state law, had to buy them.
The (dubious) policy rationale is that a shift to electric cars would lower carbon emissions significantly and that the way to achieve such a shift is by subsidizing the manufacture and sale of a luxury vehicle that only the 1 percent can afford.
In one important respect, however, Tesla stands on the side of the free-market angels: The companys business plan calls for selling vehicles directly to consumers, rather than through auto dealers a major challenge to the dealers costly, outmoded monopoly on new-car sales in the United States. . .
(Excerpt) Read more at washingtonpost.com ...
Porsche tried something similar decades ago and lost to the State Auto Dealer Franchising Laws.
Live by government-enforced rent-seeking, die by government-enforced rent-seeking.
Tesla Motors worth $29 billion??!
I am telling you it is stock fraud with these companies.
They sold 6,900 cars worldwide in 2013.
You have to add in the carbon emissions from tow trucks. On the news recently were interviews of tow truck drivers saying they're doing great business towing electric vehicles because owners ran out of charge while driving.
Slight correction - Tesla sold 6900 in the fourth quarter, about 20% above the projections for the quarter.
They sold about 22,500 for the year vs a plan for the year of 21,500.
Not a lot on one hand, but starting from zero, we will see what the future holds...
Another government sponsored business that without the assistance of the big daddy Obama bunch it would have died on the vine. Let’s get real, another smoke and mirror green energy business.
Tesla’s right. The car dealers are just a well funded lobby that is paying the government to legitimize their legally enforced collection of a vig, even when neither side of the transaction wants or needs their assistance.
This is the same mentality that would ban Amazon from selling books. It’s crony capitalism. It’s gov’t protectionism paid for by local dealerships to the whores in public office.
But... you can change out the batteries in 90 seconds!
Well; Someone can...
If and when, Tesla will make a cheaper electric to compete with the Ford Focus and Toyota Prius
As well as towing, the battery pack swap program for electric vehicles is proving to be a public tax money subsidy scam going broke before any stations have opened and not one battery swap having been done outside the manufacturing facility.
It's the Tucker redux. Killed by jealous, indolent GM using political pull.
Except that this time, Tucker's got "he'p" from the Obama gang. Those NADA types better watch their mail .... they'll be getting some fresh fish almost any day now.
Hard to define who is which side.
Don’t forget the “auto czar” Steve “the rat” Rattner killed off the Republican leaning dealers in 2010.
You are right.
Supposedly their next iteration is more family-friendly capacity at a better price point.
But they are indeed headed in the direction of being a game changer compared to the others. We will see if they end up doing so.
A big factor might be whether they can break the auto dealership monopoly.
Quien sabe... ;-)
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