Sunday, May 22, 2022
News Tesla is Asking its Fans to Push for More of its Stores...

Tesla is Asking its Fans to Push for More of its Stores in New York

Tesla wants to open more stores in New York, but legislation is in the way

  • Tesla owns its stores and service facilities

  • Many states have laws preventing an automaker from owning a dealership

  • New York allowed five stores, but this is not enough anymore

Tesla is the first automaker to use a direct sales model, where the company doesn’t have franchised dealerships.

While its cars can be bought online anywhere in the country, the company still needs facilities in key locations in order to deliver and service its cars. These facilities are owned by the automaker itself.

This poses problem in many states, since laws prohibit manufacturers from opening their own, company owned, dealership in order to protect the franchisees who have invested their money to be allowed to sell cars.

This law was abandoned in some states, but many kept them while making an exception only for Tesla. The arrival of many new brands who never had dealerships before and want to pursue a direct sales model, like Rivian and Lucid, is challenging these laws.

New York is one of the states which made a compromise for Tesla. Back in 2014, the state allowed Tesla to operate five stores on its territory.

With the rapid expansion of the EV brand, these locations don’t suffice to meet the demand anymore, but the government refuses to allow more.

The state of New York has some of the strictest climate laws in the United States but it only ranks 23rd for the rate of EV adoption. According to Tesla and its fans, this is due to the restricted access to Tesla facilities in the state.

In order to allow for expansion, Tesla asked its fans to call their local representatives and the governor to plead for more physical stores and service facilities in New York.

If this succeeds, Tesla could pave the way for its new competitors in the EV market and changes in the law could see legacy automakers abandon the traditional dealership structure in favor of proprietary stores.

 

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