Tesla Sues Michigan For "Anti Tesla" Laws

You want irony- the true irony is that it is these supposedly "Free Market" Republican-led states like MIchigan and Texas who block Tesla's business for their own personal political gain under the thumb of their state's dealer associations. Pure politics as usual. So much for 'free market" Republicans.

So Tesla is suing to be able to cash rape customers? Tesla wants to price fix and that is ALWAYS the the detriment of consumers.

So, let it be known that MDarringer supports limiting the "Free Market" if it supports his own personal politcal aims and his personal disdain for a particular company.

I most decidedly do NOT support limiting free market enterprise. Quite the opposite. In fact, I would abolish MPG law and let people buy what they really want.

Tesla wants to limit the free market to the point that it is is corporation controlled by company stores that price fix and cash rape consumers.

And before anyone bitches about having to negotiate a price, if a person does not want to negotiate, he can pay the list price. You say that's unfair? That's what Tesla wants.

One point of having dealership laws was to protect the existing dealerships against competition from the supplying company itself. One of the problems with a franchise system that often happens - is that when the company is first going into a new area - they franchise the locations - where the franchisees take most of the monetary risk - but when the market matures - these companies often open COMPANY stores near current franchised stores - and because the company stores now have a monetary advantage - they simply lower prices until the franchisee goes out of business. There are a number of such franchise operators who still do this - and that is a major problem going into a successful franchised business.

However - the other reason to require dealers is to promote and support active competition. The single source sales model of Tesla itself is inherently non-competitive - giving Tesla the unique and uncontrolled right to set prices - not only of their cars - but the cars they take in trade - giving s distinct disadvantage to the customer - who ALSO is disadvantaged when they need service - which is also non-competitive - for both labor - and parts. It is also likely to be unavailable in smaller markets where the company will not open a facility. Tesla does not offer a way to reset its computer after a service that can be done by an independent service facility - Tesla has in fact refused to reset a computer when a service was performed with used parts - for instance. You must return the car to their service facility. Since OBDII is inherently emissions based - and the Tesla does not have emissions - the laws requiring OBDII support do not apply to electric vehicles.

However - the problem with the Tesla sales/Service model is that eventually - people tire of being taken advantage of - especially when competition exists. As long as Tesla has no real competition - it can get away with its monopolistic practices - but in a real world marketplace where a number of companies offer competitive product (And it will come) - single source control of the market will eventually DOOM Tesla when other companies decide to COMPETE for sales on price. Tesla has NEVER made a profit - and it has no ability to do that one - because it cannot use profits from other operations to support the cars initially.

How do franchise owned dealerships exist alongside company ones everywhere else in the world? How do cellphone stores in our country? If we believe in the free market economy and what you say is true, then why not let Tesla drive itself out of business anyway it pleases?

I find it hilarious that people on this board equate Tesla's business model to price fixing. Apple specifies the price of their products, wheather you purchase their products directly from Apple or through a reseller. In addition, there are a variety of other businesses who prevent discounting their products but they all have competitors in their industries, just like Tesla. Tesla has competitors, GM, FORD, Chrysler, etc...who are now selling or will be selling soon pure electric vehicles. Tesla has the constitutional right to sell their vehcles how they want, it will take time to accomplish direct sales in all 50 states given the bad state legislation but this will happen. The big automotive manufacturers and dealers are praying that Tesla runs out of cash. However, none of the other automotive manufactures have over 400k people waiting +2 years for delivery of their vehicles. It’s funny, GM invested 500 million in Lyft, who totally changed the taxi and limousine service, some would say illegally.