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Dealerships

There is a faction of old style car "dealers" who either been encouraged by the oil refiners or are fearfull themselves about the success of the Tesla Way to provide their electric vehicles. They are trying once again, to stop the proper evolution of electric vehicles, by going after Tesla for so called violations of out-of-date laws regarding automobile sales through 'dealer' laws.
First, Tesla stores are not dealers. They may have been referred to in that way, but that is due to providing a framework of convention, rather than the actual practice.
You will never, ever get a deal there. The non commissioned, well educated specialists, who are hand selected, caring people, are put there to show off the fabulous features of the machines and may even help you to place an order to have a Tesla electric auto built for a customer at the Caiflornia factory. The specialists may sell a hat or a shirt, but that price is fixed and they have no direct reward for any merchandise sales. To actualy call a Tesla specialist a 'dealer' is more of an insult to the dedicated people who work there and to the entire concept of how the provision of Tesla vehicles is handled. In fact, a Tesla specialist would not only feel miserable working for a conventional car 'dealer', they would have to be retrained and probably not even qualify to 'sell' conventional vehicles.
 You can not, under any circumstances, no matter how much money you offer, buy one of the Tesla demo autos from a Tesla store. The demo machines are not the property of the managers or specialists who are working at the store. In fact, they are demos of the type of electric vehicles that Tesla provides, and they are not for sale anyway. There are absolutely no test drives done with the demo vehicles. Production models are transported to the store when a special, by invitation only, test drive party is provided by the manufacturer.
Again, you must order a hand made, custom production vehicle directly from the factory. The entire cost is pre-determined by Tesla Motors, the sole manufacturer, not by the Tesla retail store, and the price only varies with the added features. There is never any dealing. Tesla Motors manufactures these electric vehicles, at the factory in the US. There are not any dealers in any sense of the word. The stores have no financial interest in the sales from the factory, other than the continuation of providing a place to show the features and benefits of having a Tesla built for potential owners, and a place to provide special promotion merchandise that is available at the stores. 
The fact is, that this is more like a huge iPhone on wheels, rather than a smokey gas engine in a can, with seats and a steering wheel. The advantages of being completely electric, separates a Tesla from the conventional, dealer sold automobile, even though it might like the same on the outside.
Further, the fact that it has no oil changes or tranny fluids or radiator water to change, makes the need for a service bay in a mall store, a huge stretch. It is naturally the policy of Tesla to check the vehicle after it is sold, to make sure that everything is functioning correctly, and once the car has been driven for a while. Indeed, further tweeks are no different than adjustments to any machine or electronic device to assure the best experience for the user. But the dirty, messy and absolutely necessary, three thousand mile service that is required just to keep a conventional gas or diesel car operating is not needed at all. A Tesla trained, 'service' person can do everything to adjust and replace any defective part by wearing a T-shirt and jeans, not a greasy brown jumpsuit.
We should not let another crowd of hostile blacksmiths and refining profiteers stop the electric vehicle from once again becoming the standard that it should have been at the beginning of horseless travel!
RP

RP;
Really tossed in all arguments "but the kitchen sink"! :D

But only one is necessary: they accept and handle no funds related to car purchase.

+1 RP

Brian,

This law, like many others, will be argued in court
because attourneys will be paid to make a case as best fits the argument(s), of their client.

If there is enough money to be lost, (by dealers and mfgs.),
and/or made, (by law firms), you can be sure this will end up in court, and, whatever the verdict, it will then be appealed.

A judge, (and jury?) will decide what is "legal" and who is violating the law, and usually, (unfortunately), the deepest pockets come out on top.

Many of us have invested in TM for many reasons.
It is my hope that this business model is allowed to function long enough to see if it can survive and prosper.

Thanks Elon for responding!

I don't believe EU or Canada have any such laws.

United States v. General Motors Corp., 384 U.S. 127 (1966) the litigation pertaining to civil action to enjoin General Motors Corporation (GM) and three associations of Chevrolet dealers in the Los Angeles area from participating in an alleged conspiracy to restrain in violation of § 1 of the Sherman Act by eliminating sales of new Chevrolets through "discount houses" and "referral services."

Held: this is a classic conspiracy in restraint of trade: joint, collaborative action by dealers, associations, and GM to eliminate a class of competitors by terminating dealings between them and a minority of Chevrolet dealers and to deprive franchised dealers of their freedom to deal through discounters if they so choose. Pp. 384 U. S. 138-148.

Retrieved on November 2, 2012 via the Internet at URL:

http://supreme.justia.com/cases/federal/us/384/127/case.html


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