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Ftc Rules In Favor Of Tesla, Direct-To-Consumer Sales Legal


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Posted

FTC Rules In Favor Of Tesla, Direct-To-Consumer Sales Legal

on May 12, 2015 at 12:38 pm

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In 2014, General Motors backed a Michigan law that banned the direct sale of automobiles to consumers. It wasn’t alone; New Jersey and other states have also put similar laws in place. Tesla has experienced meteoric success with its high quality electric vehicles which have caused automakers and dealer networks to quiver in their boots as their formerly secure position in the market was threatened.

A direct sale model involves no haggling, meaning that consumers are able to purchase the car for what it is actually worth instead of having to negotiate their way down to what still may  not be a fair price. If Tesla can sell directly to the consumer, the pipeline of sales from the automaker to the dealer and then to the consumer would be disrupted.

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The Federal Trade Commission’s (FTC) new ruling prevents dealers from having a monopoly of the sale of vehicles. It argues that this was not only done in favor of Tesla but in defense of all business entities who desire to sell their products directly. In their public statement, the FTC asserts “blanket prohibitions on direct manufacturer sales to consumers are an anomaly within the larger economy.” The impetus for FTC’s statement is that Michigan State Legislature allowed Elio, a manufacturer of highly efficient three-wheelers, to sell direct. With this amount of inconsistency circulating among state lawmakers and courts, the FTC needed to step in and create a more universal policy.

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This ruling changes everything for consumers, dealers, and automakers. Consumers have received additional protection because the dealer network is no longer a fact of life, which means in some cases shoppers can buy cars for the price that is listed. Additionally, automakers have the freedom to choose how they sell their cars, and this increases competition which promotes economic growth. Finally, the vise grip independent dealers hold is finally being challenged, which should cause a dramatic shift in the way drivers purchase their vehicles.
Tesla has not only pioneered new technology in the automotive world, but it turns out that it has also blown open the doors to a new era of economic competition.

Posted

dealers oorukuntara mari..

 

mobiles industry lo 1plus phone kuda same concept kada..

Posted

Great news Buddy.

 

Tesla will rule the market, there are a few hurdles but eventually these will be overcome by the company. I wanted to buy a Tesla but I don't think I can afford to, I wish I could if it were half the price and I guess there are many consumers in the market who think the same way.

Posted

Great news Buddy.

 

Tesla will rule the market, there are a few hurdles but eventually these will be overcome by the company. I wanted to buy a Tesla but I don't think I can afford to, I wish I could if it were half the price and I guess there are many consumers in the market who think the same way.

:3D_Smiles_38:

Posted

dealers oorukuntara mari..

 

mobiles industry lo 1plus phone kuda same concept kada..

 

oorkoka em peekutharu :giggle: ... ippudu gola chesina eventually mooskuni koorchovalsi vasthadi , nobody can stop tesla in this aspect ...

Posted

Great news Buddy.

 

Tesla will rule the market, there are a few hurdles but eventually these will be overcome by the company. I wanted to buy a Tesla but I don't think I can afford to, I wish I could if it were half the price and I guess there are many consumers in the market who think the same way.

 

just wait for Tesla model 3 , which will be priced at around 40K

Posted

oorkoka em peekutharu @3$% ... ippudu gola chesina eventually mooskuni koorchovalsi vasthadi , nobody can stop tesla in this aspect ...

 

yeah that what i'm saying.. idi dealers ki pedda effect kada.. so definitley tesla ki ivi hurdles avuthai.. may be tesla wins but dealers kuda takkuva emi leru kada ani na question..

 

maadhi cement shop, maaku raasi cement direct ga company nunchi wagons lo vastundi.. prakasm dt mottham ki memu dealers..inekvaru leru. tarvatha daanni RMs oppose chesaaru. chala days cold war ayindi company ki, RMs ki, tarvtha raasi cement vaadu oppukunnadu.. but maku remaining cements dealership undadam valla, loss emi raaledu..

 

my case is a small one. but similar.. so asking 

Posted

just wait for Tesla model 3 , which will be priced at around 40K

 

any expected date??  i need to work on my plans as you know. :D

Posted

yeah that what i'm saying.. idi dealers ki pedda effect kada.. so definitley tesla ki ivi hurdles avuthai.. may be tesla wins but dealers kuda takkuva emi leru kada ani na question..

 

maadhi cement shop, maaku raasi cement direct ga company nunchi wagons lo vastundi.. prakasm dt mottham ki memu dealers..inekvaru leru. tarvatha daanni RMs oppose chesaaru. chala days cold war ayindi company ki, RMs ki, tarvtha raasi cement vaadu oppukunnadu.. but maku remaining cements dealership undadam valla, loss emi raaledu..

 

my case is a small one. but similar.. so asking 

 

tesla ki enduku hurdle avthadi , legal clearance ochaka they can just go setup their own shops in all the states , dealer gaallaki compete cheyatam istam ledu ee vishayam lo tesla tho so edo 150 year old law ni cite chesi court case esaru , now they lost it ....

 

any expected date??  i need to work on my plans as you know. :D

 

this year end or early next year .... inka exact date em ivvaledu ...

Posted

think_ww   idhi just for  2,3 and 4 wheeler vehicles, right?

Posted

tesla ki enduku hurdle avthadi , legal clearance ochaka they can just go setup their own shops in all the states , dealer gaallaki compete cheyatam istam ledu ee vishayam lo tesla tho so edo 150 year old law ni cite chesi court case esaru , now they lost it ....

 

 

this year end or early next year .... inka exact date em ivvaledu ...

endi yr end...musk gadu 2016 marchlo demo and 2017 deliverieski planing annada...easyga 2018 avtadi..brahmi%20laugh_01.gif

Posted

endi yr end...musk gadu 2016 marchlo demo and 2017 deliverieski planing annada...easyga 2018 avtadi....

 

ee lopala model X launch avthadi kada ..... and ippudu model S ki heavy demand anta , new car ki 4-6 months wait undi anta ..... 

Posted

think_ww   idhi just for  2,3 and 4 wheeler vehicles, right?

 

i guess so ....

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