Tesla victorious in Rhode Island after state approves license to sell direct

Discussion in 'In the News' started by simonalvarez0987, Jan 10, 2018.

  1. simonalvarez0987

    simonalvarez0987 Active Member

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    Tesla scored a major victory on Wednesday after the California-based electric car maker was given the green light to sell its vehicles to consumers within the state. Lawyers from the state Division of Motor Vehicles concluded that state law barring auto manufacturers from selling directly to consumers was only applicable to franchise auto dealers and not Tesla, who operates independently through company-owned stores.

    With its business license finally approved, Tesla is planning on opening its first showroom in Rhode Island on Route 2 in Warwick. Tesla will be selling its fleet of premium electric vehicles at 870 Quaker Lane, which is the site of a former Hyundai dealership. While the majority of details about Tesla’s first store within the state remain unknown, expectations are high that the Silicon Valley-based electric car maker would formally start selling its cars within a few months.

    Ironically, state law that originally barred Tesla from establishing a sales presence in Rhode Island has become a pain point for Ford and Toyota, automakers that have previously tried to file for similar licenses to sell direct to consumers, but failed because of their use of franchised dealerships.

    Unlike the ongoing saga taking place in Michigan, Rhode Island has adopted a far friendlier stance to the increasing influence of Tesla in the auto industry. Last summer, R.I. Gov. Gina Raimondo met with Tesla CEO and co-founder Elon Musk at the National Governor’s Association meeting in Providence. After their conversation, the Rhode Island governor openly expressed her support for Tesla’s and its future ventures in the state.

    “I would like Tesla to be able to sell here. Right now, I see Teslas driving around in Rhode Island, and they are purchased in Massachusetts. It would be a great thing if they could be purchased in Rhode Island, so we get the sales-tax revenue, and for our customers,” she said, according to a report from the Providence Journal.

    As Tesla continues its push towards further expansion into the United States, “anti-Tesla” states such as Michigan seem to be fighting a losing battle against the Musk-led electric car maker and energy company. Just recently, Tesla opened job postings for a service role in Michigan, despite the presence of an ongoing lawsuit between Tesla and the state.

    Article: Tesla victorious in Rhode Island after state approves license to sell direct
     
  2. Blueridger

    Blueridger New Member

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    I\'d like some evidence that other manufacturers have tried to sell factory-direct in Rhode Island.
     
  3. Falconwatcher

    Falconwatcher New Member

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    Brad Booth, legal counsel for the state Motor Vehicle Dealers’ License and Hearing Board:

    "Traditional car makers such as Ford and Toyota, which have an extensive network of independent dealers, are still unable to get a dealers license to sell directly, he said."

    http://www.providencejournal.com/ne...r-tesla-granted-licenses-to-sell-direct-in-ri
     
  4. tonyhan

    tonyhan New Member

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  5. J S

    J S New Member

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    Kudos to Rhode Island for finally bucking the auto dealer\'s lobby and their dirty money. I wonder if Governor Raimondo is aware that Rhode Island\'s electric vehicle incentive program ran out of money in July and continues to be unfunded. Surrounding states have active programs, and RI is behind: CT - $3,000, MA - $2,500 and NY - $2000 with 50% rebate on charging infrastructure. RI law offers a $2500 rebate and shows a commitment to EVs in RI, but without funding it actually offers nothing, and this needs to be addressed.
     
  6. aquadoggie

    aquadoggie Member

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  7. jvanderzee

    jvanderzee New Member

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    One by one the states that have tried to prevent Tesla from opening sales locations in their state are coming to their senses and approving the direct sale from manufacturer to consumer sales model that Tesla uses exclusively. The direct sale model has been deemed illegal in some states due to obsolete and inapplicable laws to protect franchised new car dealers.
    The consumer wins and with this choice available can vote with their spending as to how they view dealing direct with the manufacturer. Tesla seems to be dedicated to delivering a best in class vehicle and sales experience. Other manufactures use the franchised new car dealer sales method; which many consumers feel allows the purchase of a new vehicle to be an excruciating process.
     
  8. Roy_H

    Roy_H Member

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    This does not say that Ford or Toyota attempted to open factory dealerships, only that they would not be able to.
     
  9. Roy_H

    Roy_H Member

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    So how many states still ban Tesla sales?
     
  10. gene_grossman

    gene_grossman New Member

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    Forbes had a recent article headlined "FORD beats TESLA," and I wondered exactly what their metric for victory was: did it mean that it 'bored' more miles of tunnels, accepted more pre-orders for their electric Semi, installed more huge battery/storage facilities worldwide, made more solar roof shingles, produced more Powerwall devices, completed more worldwide vehicle charging stations, installed more solar panels on roofs, made plans to build more mega-factories, manufactured more lithium batteries, or was it some other thing?

    Yes, it was some other thing that when compared to Tesla's accomplishments was such a drop in the bucket that it doesn't even deserve being mentioned, but here it is... a numerical 'beating:' "Ford's shares have gained 7.23% for the last three months and 18.07% for the last six months, compared to -11.29% and 2.51% for Tesla."

    Yep, that's how Ford beat Tesla - with the amazing above-mentioned accomplishment that their families must be so proud of.

    Gene Grossman - www.MagicLampAudiobooks.com
     
  11. Teslaliving

    Teslaliving Moderator

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    I'm 15 mins from RI so this is good to see, but no service center which is what we really need. Watertown and Dedham are far away and painful to get to.
     

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