

New York Lawmakers Set Aside Bill Threatening Tesla Sales - bashgrep
http://www.bloomberg.com/news/2013-06-22/new-york-lawmakers-set-aside-bill-threatening-tesla-sales.html

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Felix21
Why would someone even consider creating a law to protect an industry that
technological and business model "innovations" are threatening to replace.

Is that not how the free-market is suppose to keep the whole system efficient?

It just sounds absurd:

"I'm going to jail Hun"

\- what did you do?

"I made a car... and then I sold it... directly to those who wanted it"

\- .......

ridiculous

~~~
swinnipeg
Rent Seeking exists in so many places.

 _" rent-seeking is an attempt to obtain economic rent by manipulating the
social or political environment in which economic activities occur, rather
than by creating new wealth"_

A great side effect of popular companies like Tesla and Uber is the attention
they bring to these practices.

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bashgrep
Similar events happened in Texas, but Texas' legislature isn't back in session
until 2015.

[http://money.cnn.com/2013/06/04/autos/tesla-
texas/index.html](http://money.cnn.com/2013/06/04/autos/tesla-
texas/index.html)

and in North Carolina... "Any time there's an innovative way to bring a
product to market it's going to initially get push back from the fellows that
have been doing business the same way since 1902..."

[http://www.charlotteobserver.com/2013/05/24/4062463/tesla-
se...](http://www.charlotteobserver.com/2013/05/24/4062463/tesla-service-
center-in-raleigh.html#storylink=cpy)

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pbreit
Does banning direct auto sales make sense anymore? Did it ever?

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pyre
I believe that it was originally a customer-protection measure. These days
though, it's just a way to protect car dealerships from competition with the
manufacturers.

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johnchristopher
How is Tesla direct selling to customers hurting car shops that sell cars from
one or more traditional manufacturers but none from Tesla ?

Is there a rationale behind that ? As in car shops are scared Ford or GM would
open a direct-to-customers shops for lower prices than they could offer to ?

~~~
dagw
NPR's Planet Money did an interesting show on the topic:
[http://www.npr.org/blogs/money/2013/02/19/172402376/why-
buyi...](http://www.npr.org/blogs/money/2013/02/19/172402376/why-buying-a-car-
never-changes)

~~~
johnchristopher
Thank you.

> There are plenty other businesses employ lots of people but don't have so
> much protection from state laws. > > That may partly be due to the fact that
> car dealers have a lot political power. Dealers contribute a big share of
> state sales tax revenues — as much as 20 percent in some states — and they
> tend to be big local employers. That makes state and local legislators
> listen.

Interesting. So they basically are afraid of any dent in the system even if it
wouldn't erode their own sells (of every brand but Tesla).

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Hoff
Related Reading: "Economic Effects of State Bans on Direct Manufacturer Sales
to Car Buyers":
[http://www.justice.gov/atr/public/eag/246374.htm](http://www.justice.gov/atr/public/eag/246374.htm)

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kiba
How many salemen do you need to run a dealership? I would have thought most of
the dealership employees are the mechanics and support services?

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robomartin
Atlas Shrugged. We continue to approach it.

For those not familiar; from the wilipedia page:

"The book explores a number of philosophical themes from which Rand would
subsequently develop Objectivism.[7][8] In doing so, it expresses the advocacy
of reason, individualism, capitalism, and the failures of governmental
coercion."

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transfire
Whew!

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kdkdkdkdkdkdk
>> It also would’ve blocked registrations of new vehicles bought out of state.

Doesn't this sound insane to anybody? With that kind of a clause in the law
all credibility is lost for whomever is sponsoring this bill.

