Friday, 18 April 2014

The Texan Claws are out against this Company

The Palo Alto headquartered company is facing problems in states that have prohibited its direct-sales model. Texas is among those states. Tesla is fighting a loan battle against powerful auto dealers who are trying to throw cold water on the company’s selling model. This news comes at a time when the electric car company is considering Texas for $5 billion battery plant and 6,500 jobs.

The company came into limelight with the production of Roadster. Its new car Tesla Model S is a success with critics and consumers rooting for it. Now, to buy the $70,000 to $130,000 ranged car model, you have to go online. This is because you can not place orders at Tesla Austin (at The Domain). You can not even discuss price there. Also, the company is allowed to offer limited test-driving opportunities in Texas. This means if you want an urgent test drive, you have to go to a neighboring state that hasn’t shot down the company's direct selling proposition.

Texan Legislature did not allow Tesla to exempt itself from selling through dealerships. The Texas Automobile Dealers Association believes that the law shouldn’t change for any special interest (read the billion dollar factory plant). The president of the Association, Bill Wolters, is worried about dealerships, specifically those in the rural region who would sustain losses if there was no legal protection against factory-owned dealerships.

But, Tesla is tenacious on selling directly to Texan car buyers. It wants to eliminate franchised dealers who act as middlemen between manufacturers and end car buyers. Their argument rests on the logic that Tesla’s sales are very minor to justify the need of a franchise dealership. And, they believe that the sales staff working at major dealership won’t pitch for Tesla against easier-to-sell gasoline automobiles.

Only time will tell, who wins - Tesla or the Texas Automobile Dealers Association? Who do you support? Please drop in your views in the comments sections. We would love to hear from you.

No matter you buy a car online or from a dealer’s lot, it is important to shop for Texas Auto Loans on the internet only. By opting for online submission of your loan request, you get access to quick approval on 0 cost loan quotes. So, apply now.

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