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.


Trending Now

2023 Nissan Z Priced From $46,498 in Canada

New Z nearly $16,000 more than the last Z 400 hp 3.0L V6 comes standard Nissan has just announced pricing for its latest zed...

Chinese Clones: It is Now the Turn of the Classic Mini to be Copied

You know the expression: "imitation is the sincerest form of flattery". Well, everything indicates that it is the Mini brand's turn to receive its...

LG Chem is Working on a New Type of Plastic that will Help Fight Battery Fires

LG Chem batteries have led to many recalls due to risks of fire in the last few years The company says a new...

New IIHS Side Impact Test: More Than Half of midsize SUVs Earn Good Ratings

The Mazda CX-9 and Volkswagen ID. 4 get overall Good ratings. The Nissan Murano, Kia Telluride, Hyundai Palisade, and others score a Marginal...

The Number of Fatalities on US Roads in 2021 has been the Highest in 16 Years

Many drivers went back to work in 2021 after close to a year off the roads Last year saw fatalities surge by 10.5%...


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.