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Missouri next state to attempt Tesla direct-sales ban

When Tesla Motors feels like its under attack, it is not afraid to speak out. After state lawmakers in New Jersey voted to close the electric vehicle company's stores there, the company said it was an "affront to the very concept of a free market" and CEO Elon Musk compared the situation to mafia tactics. In Ohio, when the company learned about a fast-moving challenge, it quickly asked its fans and owners for help. That same move is now taking place in Missouri, where Tesla said a "sneak attack" is happening that will "thwart due process and hurt consumer freedom in Missouri." Tesla currently has one store in Missouri, in St. Louis (and wants to open another), but new language inserted into a bill that had previously been focused on off-road vehicles "would bar Tesla from selling its vehicles direct to consumers in the state," the automaker says. That doesn't seem like an exaggeration, since the bill explicitly states: In enacting subsection 3 of this section, it is the express intent of the legislature to prevent any manufacturer of new motor vehicles from circumventing the public policy as stated in section 407.811, by engaging in methods of retailing new motor vehicles which are designed to avoid the provisions of sections 407.810 to 407.835. Tesla says the bill's new language passed the Senate last night, "after zero public consultation and could soon move to the House floor for a final vote, essentially without debate." Tesla wants to get a debate started, so it makes its point in bold terms. "To be clear: this is worse than a mere case of dealers trying to protect an existing monopoly – this is a case of dealers trying to create a monopoly," the company said. Recently, some officials at the FTC said they thought anti-direct sales rules were "protectionist," which at least hints that a possible change is coming. You can read Tesla's call to action for Missouri below. We have just become aware of a last-minute attempt by the auto dealers lobby, via pressure on legislators, to use a procedure that would bar Tesla from selling its vehicles direct to consumers in the state. This extraordinary maneuver amounts to a sneak attack to thwart due process and hurt consumer freedom in Missouri. In the last week before Missouri's legislature ends its current session, dealers proposed new language in an existing bill that would force Missouri consumers to purchase new vehicles only through middleman franchised dealers.

Tesla curbs forecast due to Model S issues, losses total $864.9M

It ain't easy creating a brand-new automaker from scratch. The fact that Elon Musk and Tesla have actually been able to bring not one, but two cars to market is in itself quite impressive. That said, the road has not been without its bumps, and Tesla is feeling some of the setbacks that come with being a fledgling automaker.
To that end, Tesla has revealed that it expects $400 million to $440 million in full-year revenue, or roughly $160 million less than its prior 2012 revenue forecasts. In a Securities and Exchange Commission filing on Monday, the electric carmaker said "We have methodically increased our Model S production at a slower rate than we had earlier anticipated," leading to the company figuring they'll fall short of the $560 million to $600 million they originally forecasted. Tesla also revealed a net cumulative loss of $864.9 million through June 30 of this year - Tesla has yet to break even as an automaking entity, but it remains something of a startup, so the fact that it has lost money to this point shouldn't be a major surprise - building cars is expensive, and learning how to do so is even more expensive. Following the disclosure, Tesla shares fell about 8.5 percent this morning in trading.
Tesla cites delays in suppliers for its Model S production shortcomings. The California automaker says it is working with suppliers to speed up deliveries and internally, it is adding shifts and automation to its manufacturing processes. With little more than half of the 5,000-vehicle target expected to be built by year's end, Tesla says it is four to five weeks behind its delivery goals.

Tesla does Dallas

Despite not being allowed to actually sell cars on site - or even offer a test drive - Tesla has opened its newest venue in Texas. As of Friday, NorthPark Center mall in Dallas is home to the newest Tesla Gallery. Don't call it a Store! Employees at the gallery can't even discuss pricing. The 2,200-square-foot gallery lets interested parties learn more about the California-based electric car company, and even sit behind the wheel of a Tesla Model S. Texas law prohibits manufacturers to sell directly to the customer, though which is the business model for Tesla. Employees at the gallery can't even discuss pricing. They can, however, explain the technology, and direct potential customers to their website where they can make a reservation at home. Let's call it a hands-on advertisement. "Our galleries create strong awareness for our product," Tesla Spokesperson Alexis Georgeson told Automotive News. "[They] are our advertising." Other Tesla owners in Texas, of which there are nearly 2,000, help pick up the slack, too, some even offering test drives to strangers, she said. Since Texas law restricts selling cars without a franchised dealership, taking delivery of a Model S is a bit of a process. After purchasing online or by phone, the car is delivered from out of state by a third party. The vehicle is registered out-of-state as well, and customers must then register the car in Texas after taking ownership. When they do that, they must also pay the entirety of the Texas sales tax on the vehicle, as well as the price of the aspirin required for the accompanying headache. Without franchised dealerships, repair options are also limited for Tesla owners in Texas. Tesla does have local subsidiaries that do repair work, but customers must first call Tesla Motors in California, who will decide what repair work is necessary before being sending the customer to the service center. Even then, employees aren't allowed to discuss additional repair needs with customers, or even advertise that they do warranty work. Currently, Tesla has three of these subcontracted service centers in Texas, in Austin, Houston and Dallas, with a San Antonio location on the way. Last year, a bill was introduced to exempt Tesla from Texas's law banning factory-owned dealerships, but it didn't get to the House floor before the end of session. According to Georgeson, Tesla will try again to overturn the law when legislators reconvene next year.