T Nation

Tesla Barred From North Carolina??????


#1

What gives? I thought this was a capitalist society we live in? Why is it that Tesla is being barred from directly selling to customers in NC, amongst other states? They've found a business model that works, they are turning profits, providing a product that the consumers who have bought it are thrilled with, and the NC govt is going to try and keep them out?

http://abcnews.go.com/Business/nc-bill-block-manufacturers-tesla-directly-selling-cars/story?id=19176424#.UZPN7yv725I


#2

Sounds like NC just wants Tesla to be regulated by the DMV like all other dealers. What's wrong with that?


#3

[i] "We believe that Tesla, like all the other auto dealers in the state, should get a license, appoint a dealer, fall under the protection of the Department of Motor Vehicles, and sell cars," Glaser said. 'We just want them to play by the same set of rules that the other 7,000 dealers in the state do."

Glaser said there are minimal costs associated with appointing a dealer. All Tesla would need to do is to establish a franchise agreement with the dealer and send them cars, he said. The dealer, in turn, would need to be licensed and regulated by the DMV.
[/i]

I believe what is missing from this quote is the following: Once they establish a dealer we can tax the transaction twice. Once when it is sold to the dealer and once when it is sold to the end user. Online sales eliminate the 5% of the wholesale cost we get from other vehicles.

MA does this with alcohol. They tried to tax it a 3rd time, but pretty srure the Kennedy's stepped on that one. :wink:


#4

I'm not really into regulation from the govt entities. They usually just screw things up and drive the cost up of everything they get their hands on. Why do we need a middle man telling me what I can buy and what Tesla can sell?


#5

A powerful lobby apparently.

Sure they're going to. If you've built up a government with wide-ranging regulatory powers, lobbyists are going to take advantage in order to stifle competition. Or, as they see it, to make them "play by the same rules and under the same oversight."

See Beans as to why the govt. might agree with the lobbyist. Revenue in taxes and fees.


#6

Doesn't sound like much of a free market to me. You're free to buy and sell whatever you want in the free market as long as you jump through all the hoops that the govt places in front of the seller and the buyer first. And like someone pointed out earlier, what ends up happening in this particular case is that the state govts simply get another crack at taxing the consumer, for multiple times on the same purchase. I don't like it one bit.


#7

Yeah it is pretty cut and dry as far as I can figure.

Two entities doing business in the state raises your chance of being able to tax them to twice as much as one entity doing business. Then, if Tesla wants appropriate coverage, they will license 5, 10 maybe 500 dealers in NC, effectively giving the state 500 net incomes to tax, 5,000 employee wages to tax, and the whole "I brought jobs to NC" stump speech.

This type of bullshit doesn't surprise me in the slightest.


#8

Well you don't, but apparently the people of NC are okay with it, which is why their gov has done this. If you live in NC you would vote against the officials responsible for this, move, etc...

Believe me, I'm all for less regulation, but that's about as likely as the proverbial buck stopping with Obama, so....


#9

Actually, barring a heavily subsidized manufacturer IS supporting the free market.


#10

Is the Tea Party going to get involved here? I know they're for less taxes and less governmental regulation, so it seems like this sort of issue is right up their alley. This isn't happening only in NC. There are several other states with similar measures in place. Is the Tea Party going to go after the way these states do business? Or do they just go after the ones with primarily Democratic govts?


#11

Well, then let's keep ALL businesses out of EVERYWHERE! Yay!

Pretty much all businesses are subsidized in one or another. Farmers owe their very existence to subsidies. Besides, Tesla was subsidized but they are turning a big profit now and are the first successful American automotive company to come along in about 80 years.


#12

Tesla barred from N.C.?
This an such outrage, how can this be?
There are absolutely no other makes and models to choose from in N.C.,
so what on EARTH are these poor people gonna do when they need a
new car?.. Ride their Horses?
I think I'm gonna shed a tear for the poor people of N.C,
this is too much...this is just too much...I can't type anymore, I'm sorry.


#13

Should we consider the $465 Million government loan Tesla took out in this "profit" they claim to make in California ?


#14

This is crap. Tesla should have every right to sell their cars to whomever they want. The buyer just needs to buy a plane ticket to the plant and then drive the car home. Problem solved.

I saw one in my neck of the woods the other day. It is a pretty car, but nothing really that great. Kind of looks like a Jaguar.


#15

I never advocated any such thing. Nor did I even advocate the free market. Just noted the absurdity of your point about a company that only exists due to tax payer funding not getting "fair" free market treatment.


#16

They've been too busy trying to comply with--and/or fighting--a politically hostile IRS....


#17

They're pretty fucking fast, though. I think all of the models will do 0-60 under 5.5 seconds, and I think one of the models does it in the high 3's.


#18

This post was flagged by the community and is temporarily hidden.


#19

Right, how silly of me.


#20

I agree with your position, as it is my opinion that any government regulation is the cause of problems, not the answer. But I seriously question your sincerity.

You say this here, yet in the IRS discussion, you are for as much government regulation as the IRS can mete out when it comes to 501(c) entities.

Try to stay on one side of the fence. It's easier on the man parts.

Wait. This couldn't possibly have anything to do with the fact that NC is run by the R's, could it? No way. Sorry I brought up the obvious.

Did you raise this much of a protest when Chicago was trying to zone Chik-Fil-A out of the city? Call me an idiot, but I'll bet $20 you didn't say a word.