Politicians, Car Dealers Trying To Make It Illegal To Buy A Tesla In North Carolina

from the hating-on-disruptive-innovation dept

Last fall, we wrote about how auto dealers were bitching about the fact that electric car company Tesla sells their cars directly. It has "stores" but you can't buy your cars from those stores, due to antiquated and ridiculous regulations about car sales. Most states have laws that basically say that car companies can't sell directly. These laws serve no purpose other than to protect (often politically powerful) independent car dealers from being disintermediated.

In North Carolina, however, they're taking it up a notch. They're basically trying to make it illegal to sell a Tesla in North Carolina at all. About 80 North Carolina residents have already bought one, but they may be the last:
A legislative proposal, backed by the N.C. Automobile Dealers Association, would make it illegal for Tesla, or any other car maker, to bypass dealerships and sell directly in the state. The proposal cuts at the heart of Tesla’s business model: selling luxury cars over the phone or Internet and then delivering them to the front door of high-net-worth customers.
The North Carolina State Commerce Committee approved the proposal unanimously.

This is the same thing we see over and over again in other contexts. Companies in an entrenched legacy position trying to use regulations to block disruptive upstarts. There is no good reason for this law other than to block Tesla and to prop up dealerships. It's somewhat disgusting to see politicians actively seek to stamp out innovation.

Filed Under: dealers, north carolina, regulations, tesla
Companies: tesla


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  1. icon
    madasahatter (profile), 13 May 2013 @ 2:00pm

    Re: Re: Re: Republican obstructionism denies inovative products to its citizens

    All electric cars (not hybrids) suffer from the same technical problem of recharging time vs range. The recharging time of the battery limits the usefulness of electric cars to short distance trips with the lengthy recharging in between. Recharging times are often several hours. Tesla has managed to increase the range by having larger batteries installed.

    This technical problem has existed since the Brass Era (1890 - 1920) and is caused by the nature of rechargeable batteries.

    Steam (some Brass Era cars where steamers) and internal combustion engines can use liquid fuels. The refueling time, thus, is only a few minutes. The effective range of the vehicle is determined by the physical limits of the driver.

    For example, some Tesla models have a range of about 250 miles with a recharging time of several hours. Your typical IC powered vehicle has a range of about 350 miles but more importantly a refueling time of about 10 minutes. The IC powered vehicle has effective range of 2 - 3 times that of a Tesla.

    Also, it is debatable if electric vehicles are overall better for the environment. They are not emissionless, just the emissions occur at a different location and in the production of the battery.

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