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Tuesday, May 3, 2016

GM is Directly Preventing Tesla From Selling Vehicles

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Tesla Store Red


Tesla is having a hard time rolling out its “direct-to-consumer” sales strategy across the country. The biggest issue being competition—or rather, GM’s fear of competition. In a recent report by Elektrek, GM is outright blocking Tesla from selling vehicles in Connecticut, and possibly elsewhere.
 
Bill SB3 that would allow Tesla to sell directly to consumers in Connecticut has officially been shut down. The lobbying campaign, led by General Motors and the local dealership association is to credit. But Tesla isn’t backing down just yet—the automaker has already opened a showroom in the state, and will likely launch another effort next year.



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For now, the company isn’t shying away from placing the blame:
“This is using the state legislators and a legislative body to prosecute a business strategy whereby they are trying to shut us down at the same time they are bringing out a competitive product,” said Tesla’s Vice President of Business Development, Diarmud O’Connell.

“The free market fairness question has to be asked: General Motors decided they were going to a franchise system in the 1920s and 30s. Good for them. Why wouldn’t Tesla as a free-market actor get to make the same choice now?”



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With Tesla’s ongoing issues not only in Connecticut, but across the country, another report suggests that Tesla may be taking the fight to federal court in the near future.