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Tesla appears to be winning direct sales battle in Missouri

Last week, it looked like Missouri would join the list of states where Tesla Motors would not be allowed to sell its all-electric vehicles directly to consumers. Without warning, language was inserted into a bill about off-road vehicles what would have prevented direct sales in the state. Tesla called it a "sneak attack" and tried to get supporters to let lawmakers know the law was a bad idea. "It is not clear that the statues apply to a seller like Tesla" – Missouri Department of Revenue Thanks to some digging by Tesla fans over at the Tesla Motors Club, it became clear that one of the main drivers of the anti-Tesla legislation was conservative state senator Mike Kehoe, a former Ford and Lincoln-Mercury auto dealer. For some time, Kehoe has been asking the Missouri Department of Revenue if Tesla should have gotten a license to operate its one store in the state (in St. Louis) and said that the automaker's moves were, "clearly designed to circumvent the traditional franchise model for the distribution and sale of new motor vehicles." The DOR responded by saying, "It is clear under Missouri law that traditional manufacturers who already have franchised dealerships in the state may not sell cars directly to consumers. It is not clear that the statues apply to a seller like Tesla, which apparently has not entered into franchise relationships with independent dealers." After Kehoe got that response, it seems, he added the language to the bill. You can read the bill here. The tide may be turning against the proposed law, though. Tesla has apparently hired 10 lobbyists to makes its case. Local newspaper The Kansas City Star published an opinion column yesterday in support of the automaker. "As a business offering something new and better for the environment overall, Tesla should have been given allowances to operate in a different way in the state," the paper wrote. And the state House Republican majority leader, John Diehl, says he has no plans to move the bill forward because lawmakers are worried it would put a limit on the free market and have unintended consequences. Read more here: http://www.kansascity.com/2014/05/12/5019618/missouri-house-leader-not-fond.html#storylink=cp

FTC officials question 'bad policy' that stops Tesla's direct sales

It looks like Elon Musk has a new group of allies over at the Federal Trade Commission. Writing on the FTC blog, three high-level FTC officials came out against the "protectionist" network of laws in the US that govern automotive dealers and prevent, in some cases, Tesla Motors from selling its cars directly to customers. They called the rules, "bad policy for a number of reasons." They write: [The legal] protections expanded until in many states they included outright bans on the sale of new cars by anyone other than a dealer-specifically, an auto manufacturer. Instead of "protecting," these state laws became "protectionist," perpetuating one way of selling cars-the independent car dealer. The post is not a call to arms, but more of a position statement co-authored by Andy Gavil (director of the Office of Policy Planning), Debbie Feinstein (director of the Bureau of Competition), and Marty Gaynor (director of the Bureau of Economics). "The collective [cost] impact of [the state-by-state battles] is one of the major concerns here. [Tesla is] just trying to sell their cars" – Andy Gavin Gavil told AutoblogGreen that the main goal was to bring attention to the issue, which the post has certainly done. There are so many of state fights going on, he said, that this was a way to reach a lot of people at once. "We've been watching this for months," he said. "It's very clearly a state-by-state battle. We are concerned about Tesla litigating state-by-state. The collective [cost] impact of that is one of the major concerns here. They're just trying to sell their cars. The way the industry is reacting shows that it's about more than that." Gavil wouldn't go so far as to say that there should be new national rules – it's up to Congress to do that, he said - but he has also been looking at the taxi industry and the upstarts like Lyft and Uber. The competition angle sometimes doesn't get the attention it deserves, he said. "If there's a more open debate about it, that can only be a good thing." One of the groups opposed to Tesla's direct sales is the National Automobile Dealers Association (NADA), which represents 16,000 new car and truck dealerships with about 32,000 domestic and international franchises.

Governor Rick Perry backs bid for Tesla Stores in Texas

It's funny how the prospect of a $5-billion investment in a state has the ability to focus minds. Take Texas, for example. The Lone Star State has long had laws prohibiting automakers from selling directly to consumers, even if the manufacturer didn't already sell through franchise dealerships. Last year, a bill went to the legislature that would have allowed Tesla Motors to sell directly to its customers, but despite entreaties and a visit from CEO Elon Musk, lawmakers didn't pass it. Sure, Texans can still buy the a Model S, but the process is a bit cumbersome. With the prospect of an expensive battery gigafactory and the jobs it would bring, however, Texas Governor Rick Perry taken to the airwaves cable news outlet Fox Business to make his supportive position known. To be fair, the one-time Republican Presidential hopeful has been in favor of Tesla's sales model for some time. The difference now is he is being proactively vocal about it. Appearing on Opening Bell with Maria Bartiromo, Perry spent close to eight minutes pitching a new approach to dealership laws in his state, at one point referring to the traditional dealer model as "antiquated" and encouraging legislators to have an "open and thoughtful" conversation and decide whether or not they want to lead the country when it comes to manufacturing. If you think that he has become warm and fuzzy about environmental issues, Perry reminds us after a brief discussion on 2014 and 2016 elections – yes, he may run again – that he has no qualms about continuing to rely on fossil fuels, stating that he thinks the most important thing the federal government can do to impact the economy right now is to "say yes" to the Keystone XL pipeline. You can view the segment in its entirety be simply scrolling below.