The American high-tech electric automobile manufacturer, Tesla Motors, has suffered from a huge setback as its direct sales have been banned in the state of West Virginia. Tesla News affirms that the Governor of the Virginian State, Ray Tomblin, has signed a new bill that aims to stop automobile manufacturers from working in the capacity of an automobile dealer or offering a dealership. This piece of legislation is passed to ensure that all vehicles are sold through franchised dealers. The organization will face new challenges due to this regulation.
Tesla news today reported that the President of the West Virginias Senate, Bill Cole, who also runs the Nissan dealership, supported this pro dealer’s legislation. The President of the West Virginia Automobile and Truck Dealers Association has also advocated the legislation as he stated that the bill is not passed to target the electric vehicle producer. It is expected that this newly passed legislation would safeguard the interests of the dealership lobby, which states that their deals have been designed to benefit the customers as they offer flexible prices and encourage competition among carmakers.
Tesla Motors has opposed the law, as its management has objected against this new piece of legislation that has been designed to curtail the freedom of automobile users and safeguard the interests of dealers only. It has also stated that it would fight for the rights of the car users. These two statements are sufficient to explain that Ford has been injured by this legislation. It is expected that this new pro dealer’s legislation would play an important role in reducing the sales of the company, as this law does not allow it to sell cars to customers from a number of nearby states, such as Washington, D.C, Kentucky, Maryland, Virginia, Pennsylvania, and Ohio.
The newly ratified law is expected to amend the selling method of the producer, as now it would have to establish galleries in the state of West Virginia. Latest Tesla news confirms that West Virginia is not the only state in which the corporation has been banned from directly selling its products, as the governments of some other states, such as Michigan, Maryland, Iowa, Texas, and Arizona, have also banned direct sales. The regulation has received mixed responses from analysts and market experts. The customers, on the other hand, have also demonstrated similar feedback.
The organization is experienced enough to sell its products through the indirect means of franchised dealers. Many have viewed the ratification of the pro dealership law as a victory for automobile dealers who are most likely to benefit from the legislation. Now it is yet to be seen that to what extent the newly passed regulation is able to play its role in helping the users of these locomotives.
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