Home » News » Tesla » The Tesla Motors situation in the USA explained
This week saw one of the biggest news items to date in the electric car industry come to a head – The battle between Tesla Motors, and the car dealership industry of the USA is causing more friction than a set of new car tyres spinning out on the road…

Since there’s a lot of commotion and noise flying about in the news (Richard Branson even had something to say about the matter, adding in his two cents to the debate via a post on the Virgin blog) we thought we’d take this opportunity to clarify and explain the whole situation that’s been all over the media this week.

What is Tesla Motors?
Tesla Motors is a car manufacturing company
The Tesla Motors situation in the USA explained
founded in 2003 by a group of Silicon Valley engineers. It designs, manufactures and sells electric vehicles, all through its own outlets – Both online and in physical retail stores. It is not stocked in third party dealerships anywhere.

What’s all the fuss about in the news lately?

At the moment, Tesla Motors is banned from opening up its own retail outlets in many states in the USA. This means that in states like Texas (where Tesla stores are banned, but where many people still purchase Tesla cars) customers have to fly to states like California to test drive the car, return home, buy said car online, then have it delivered to their home in Texas. A bit of a hassle, right?

But now, over 100,000 people (105,000 at last count, to be exact) have now signed a White House petition, which asks for Tesla Motors to be allowed to sell its cars directly through retail outlets in all fifty states.

The petition states that “States should not be allowed to prevent Tesla Motors from selling cars directly to customers. The state legislators are trying to unfairly protect automobile dealers in their states from competition. Tesla is providing competition, which is good for consumers.

Now that the petition has reached its target number of signatures, President Obama’s administration will have to address the situation and provide an official response as to the next steps and course of action. Whether or not this will have any real immediate impact on federal and state laws will be a different matter entirely - We’ll have to wait and see whether or not Tesla gets its desired outcome from the whole ordeal.

Why was it banned from being sold in some states in the USA?

Basically, car dealerships don’t like the fact that Tesla cars can be bought sold without them. In other words, the whole process of buying and selling Tesla cars renders the car dealership as the “middleman” obsolete. Many traditional car dealerships see this as a growing trend, and one they want to avoid if they are to hold on to their ability to make money through price markups and dealership fees.

Why is all of this still great for the green car industry?

All of the media attention Tesla Motors has been getting recently is bound to be doing positive things for the brand’s reputation amongst people around the world who are passionate about finding environmentally-friendly alternatives to fossil-fuel burning cars. So no matter what the outcome of this most recent petition, we haven’t seen the last of Tesla Motors and the rest of the green car industry – not by a long shot. Stay tuned…

What do you think? Should Tesla be allowed to sell cars directly in all states around the USA?

Related Articles

Leave a Comment

Fields marked with * are required
Name *:
Email *:
Comment *:
Code *:
  • Email
  • YouTube
  • RSS
  • Twitter
  • facebook
  • feedburner

Related Specs

  1. 2007 Tesla Roadster

    Engine: 3-phase, 4-pole Electric Motor, Power: 184.9 kw / 248 bhp @ 8500 rpm, Torque: 286.08 nm / 211 ft lbs @ 1 rpm
  2. 2010 Ford Mustang

    Engine: V8, Power: 315 hp @ 6000 rpm, Torque: 325 lb-ft @ 4250 rpm
  3. 2009 Nissan 370Z

    Engine: VQ37VHR Variable Valve Timing NA V6, Power: 332 bhp @ 7000 rpm, Torque: 270 lb-ft. @ 5200 rpm
  4. 2010 Bentley Azure T

    Engine: Twin Turbocharged V8, Power: 500 bhp / 507 PS / 373 kW @ 4,200 rpm, Torque: 738 lb ft / 1,000 Nm @ 3,200 rpm
  5. 2009 Porsche Cayman

    Engine: 6 Cylinder Horizontally Opposed "Boxer", Power: 320 bhpN/A

New Vehicles

Ford “Ole Yeller” Mustang is the most track ready Mustang everFord “Ole Yeller” Mustang is the most track ready Mustang ever
To raise some money for charity and also offer its clients a track-ready Mustang, Ford unveiled a special edition called “Ole Yeller” Mustang, that ...

Concept Cars

Lynk & Co launches 01 compact SUV to conquer US and EuropeLynk & Co launches 01 compact SUV to conquer US and Europe
Geely has launched another brand. Its name is Lynk & Co and we already have a model. Named 01 we are talking about a compact SUV that will be manufactured ...

Custom Cars

Ford Mustang receives power packagesFord Mustang receives power packages
Ford Mustang is already one of the most desired muscle-car on the market. No wonder is also the best-seller of the segment. To increase the desirability ...

Future Cars

Audi electric cars will reach 25% of US market by 2025Audi electric cars will reach 25% of US market by 2025
One of the main actors in Dieselgate scandal, Audi will try to concentrate its efforts in the green zone. Audi is investing in new technologies, more ...

Market News

Renault-Nissan Alliance integrates MitsubishiRenault-Nissan Alliance integrates Mitsubishi
What was first considered a rumor is now officially true. The Renault-Nissan Alliance has gained control over Mitsubishi, in amove that might seem suspect ...


Infiniti VC-Turbo engine is a world firstInfiniti VC-Turbo engine is a world first
Even if its presence on the European market is not so strong, Infiniti used this year Paris Motor Show to introduce a world premiere. Not a completely ...

Various News

Ford 1.0‑litre EcoBoost engine wins another prizeFord 1.0‑litre EcoBoost engine wins another prize
Ford is one of the best carmakers when it comes to small engines. And that is because it`s 1.0‑litre EcoBoost engine has been voted best in class at ...


Hyundai unveiled its 2017 i20 WRC racecarHyundai unveiled its 2017 i20 WRC racecar
Hyundai continues to be one of the most competitive brands in the FIA World Rally Championship. So the Korean brand decided to showcase its future weapon ...


Ken Block teases the next Climbkhana on Pikes PeakKen Block teases the next Climbkhana on Pikes Peak
We all know Ken Block as one of the most popular American racing drivers. And this reputation comes from the famous Gymkhana series. ...