The motor car retailer, Tesla Motors, while applauded by both Consumer Reports and Motor Trends has run into tremendous legal trouble with business regulation in several states. Currently, they are banned in four states, being challenged in another five states, are uncertain in another four states, have restrictions in another four states and can freely sell in only four states. They do not currently have storefronts in the remaining twenty-five states.
Sierra Club and Americans for Prosperity
The Sierra Club and Americans for Prosperity have both risen in support of Tesla Motors and their ways. While AutoNews has referred to the two as “strange bedfellows”, it actually makes quite a bit of sense that two organizations like them would support something like Tesla together. Both are concerned with the environment and auto recycling.
The Sierra Club was founded in 1892 and is now considered to be the largest influential grassroots environmental organization. They have had many successes from the influence of the passing of the Clean Air Act to the overall move away from dependency on fossil fuels.
Americans for Prosperity was founded in 2004 and its main mission is to educate the public about economic policy, why taxes should be lowered and government should be limited. Energy and environment are included among their eight main focus areas. Their three main support areas include those related to government spending, removing barriers to entrepreneurship and bringing back fairness to the overall judicial structure.
Tesla and the Dealer Franchise Organization
Tesla has been making numerous attempts to worm their way around the dealer franchise organization. They want to function as an independent company, without even listing as that. Tesla themselves want to be in charge of helping consumers make their vehicular purchases and the way that it’s done.
The auto industry is overall considered to be much more competitive than when the franchise laws and regulations were first passed. Tesla has believed this to be unnecessary and as a result, has been trying to work around them. The company has also been very paranoid that other car dealers are joining forces with each other to put an end, or at the very least, a severe hindrance, on them.
Recently, a public-interest letter with Tesla’s arguments was released and its signers included three free-market groups (to be more exact, a free market is a market in which prices are determined by unlimited competition between private businesses) and two environmental groups.
Tesla believes on building business by direct education to the public by the manufacturers themselves.
While the future of Tesla is uncertain, what is certain is that they have proved themselves to be an example of where auto evolution may well be headed next.