Tesla Motors Gets Small Victory, Can Keep its Electric Car Stocks in New York and Ohio
After suffering a defeat in New Jersey where the state's motor vehicle commission denied Tesla the ability to sell cars directly to costumers, the electric car manufacturer can now claim two small victories. Although Tesla's future remains uncertain when it comes to company-owned car stores, victories in New York and Ohio allow the company to stay on the market.
In the long run, Tesla may be losing the dealership battle, opting to soothe dealers' fears and open their own independent dealers. The electric car maker has argued that it needs its own stores so that its salespeople can explain the benefits of their cars instead of simply selling cheaper, gas-powered cars.
According to CNN Money, Tesla won a temporary victory when it reached a deal with the New York Automobile Dealers Association. The deal will allow Tesla to keep its five stores in New York City and the surrounding suburbs. Yet, the company will not be allowed to open new stores unless they are through dealerships.
Similarly, Tesla has succeeded in keeping its two stores in Ohio, one in Colombus and another in Cincinnati, according to Forbes. The company was also allowed to open a new store in Cleveland, however these will be the only three stores in the Buckeye State for the foreseeable future. Instead of opting for an outright ban, which was certain to pass the Ohio legislature, Tesla decided to agree in the compromise even though it will it make hard for the company to compete against other luxury car manufacturers.
With the introduction of a $35,000 sedan in 2017, Tesla hopes to increase its consumer base but also faces stiff competition from car makers like BMW and Mercedes, which have a foothold in the market already, Forbes reports. Tesla aims to sell 500,000 cars per year by 2020, according to CNN Money, an increase over the 35,000 projected for 2014.
Subscribe to Latin Post!
Sign up for our free newsletter for the Latest coverage!