Tesla Fights to Sell Directly to America's Wealthiest – Investopedia



Tesla (TSLA) has adopted a recent strategy to drum up support for its direct sales commerce, trade model in Connecticut. The electric car maker is hopeful that it can persuade the state’s residents to aid overturn laws that currently permit only independent dealers to sell autos in the state. The state also happens be domestic to some of the country’s richest households.

In a letter published in the Hartford Courant, Tesla CEO Elon Musk urged local residents to back the HB 7097 bill, which legislators could vote on this week. “Your elected officials fill a choice,” he wrote. “They can vote to cede jobs to surrounding states, or choose a path that helps the state close its budget gap and build upon its history as a location for innovation and commerce, trade growth. Please encourage your legislators to allow Tesla to create jobs and invest in a cleaner, sustainable energy future for Connecticut.”

In exchange for their support, the Californian company, which unlike many of its peers prefers to sell its autos directly to consumers, pledged to open up several recent stores, each of which will create approximately 25 jobs. (See also: Soros And Coatue Sell Tesla in Q1: 13F Filings.)

These recent jobs, Tesla claimed, will provide a much-needed jolt to a local economy that has fallen victim to bond-rating downgrades and the departure of well-known local employers, such as General Electric (GE) and eBay (EBAY) subsidiary StubHub. The letter also highlighted that the state stands to gain commerce, trade that has so far been going to neighboring recent York and Massachusetts.

Four More States

Connecticut is one of four states — the others being Michigan, Texas and West Virginia — where Tesla is banned from selling its cars directly to consumers. Tesla, which has tried three times over the past few years to accept clearance to cleave out dealership middlemen in the recent England State, may be particularly inclined to sell directly in Connecticut due it being the location of some of America’s richest towns, like Greenwich and recent Canaan. (See also: 10 Most Expensive ZIP Codes in Connecticut)

final year it sued the State of Michigan because it allegedly couldn’t accept a hearing. The company accused other car companies like General Motors (GM) of lobbying against it.

The letter also outlined why Tesla prefers not to sell its autos through an independent dealer. “We employ a direct sales model because it provides the best possible experience for our customers,” the letter said. “Anyone who visits our stores can query questions of Tesla’s sales team and learn approximately electric vehicles without the stress of the typical car-buying experience at traditional dealerships. There is no haggling over price (it is the same everywhere) and customers face no pressure to invent a purchase.” (See also: What Makes Tesla’s commerce, trade Model Different?)



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