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Petition for Direct Car Sales Fails, Elon Musk Will Fight State Regulators Himself

The American people have spoken. In an online petition to the White House governmental website, American citizens h...

Petition for Direct Car Sales Fails, Elon Musk Will Fight State Regulators Himself

The American people have spoken. In an online petition to the White House governmental website, American citizens have demanded the President “allow Tesla Motors to sell directly to consumers in all 50 states.” With a total of 138,469 signatures, the Americans are trying to convince state legislators not to protect car dealers in different states from competition. They believe Tesla Motors generates healthy competition, which benefits consumers above all.

 

The Obama administration, however, is not so optimistic, and has stated that it doesn't want to get involved, reports VentureBeat. In an official response to the petition, the White House says they are excited about the future of transportation and the choices it will bring (including Tesla's electric vehicles), but points out that laws regulating car sales are made at the state level.

 

In many U.S. states, car dealers block manufacturers so that they can't sell cars to consumers directly. Some states have let Tesla Motors open a showroom, where customers can look at the electrical cars, but they can't buy them. Tesla has been accused of violating state franchise rules with its direct sales, while at the same time not being given the chance to compete with dealers.

 

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Tesla Motors CEO, Elon Musk, addressed the people of New Jersey, after the state's Motor Vehicle Commission blocked vehicle purchases from a manufacturer's store within the state.

 

“When all auto companies sold through franchises, this didn’t really matter. However, when Tesla came along as a new company with no existing franchisees, the auto dealers, who possess vastly more resources and influence than Tesla, nonetheless sought to force us to sell through them.”

 

Americans want to be given a choice when car shopping, and certain states blocking car manufacturers from selling their products is not helping the matter. Should Tesla Motors be given the chance to sell directly, no dealers required?

 

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