Tesla Motor aint gonna make it. Heres why | TigerDroppings.com
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Bayou Self
Member since Oct 2012
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Tesla Motor aint gonna make it. Heres why

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quote:

Tesla Motors' cut out the middleman approach could spell trouble in North Carolina

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Nearly all states -- 48 --require manufacturers to sell their vehicles through dealerships to ensure the companies don't undercut their own network of franchised dealers,

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But the automaker can sell in every state because transactions legally take place in California.

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Those laws are likely to stay in place, considering franchise dealers account for about 20 percent of the sales-tax base at the state level

There will not be a single state that will lose 20% of its tax base to California. Because once they are allowed to get a foot in the door, cars makers will use the new laws to undercut their dealerships in a heartbeat


FT
Georgia Tech Fan
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re: Tesla Motor aint gonna make it. Heres why
Not really related, but the Tesla is a very, very special car.


Powerman
LSU Fan
Corpus Christi, TX
Member since Jan 2004
121060 posts

re: Tesla Motor aint gonna make it. Heres why
quote:

Because once they are allowed to get a foot in the door, cars makers will use the new laws to undercut their dealerships in a heartbeat


Do people like the big 3 in Detroit really have an interest in selling cars directly though?

What difference does it make to them?


League Champs
Bayou Self
Member since Oct 2012
3682 posts

re: Tesla Motor aint gonna make it. Heres why
quote:

Not really related, but the Tesla is a very, very special car.

Then they better plan on a franchise model, or their special car will be a trivia question.

And if they do franchise, the increased sticker price puts them out of reach.

Tough times ahead
This post was edited on 5/26 at 9:46 am


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ForeLSU
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The Corner of Sanity and Madness
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re: Tesla Motor aint gonna make it. Heres why
quote:

Nearly all states -- 48 --require manufacturers to sell their vehicles through dealerships to ensure the companies don't undercut their own network of franchised dealers,


the local dealer model is obsolete, these laws are anti-consumer and anti-business and need to be abolished.


quote:

However, lobbying groups say franchise dealers invest more locally and provide customer service that Tesla cannot.


good for them, doesn't mean they should be protected from evolving business models by the state


League Champs
Bayou Self
Member since Oct 2012
3682 posts

re: Tesla Motor aint gonna make it. Heres why
quote:

Do people like the big 3 in Detroit really have an interest in selling cars directly though?

What difference does it make to them?

Ask GM how closing dealerships increased their profits


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League Champs
Bayou Self
Member since Oct 2012
3682 posts

re: Tesla Motor aint gonna make it. Heres why
quote:

the local dealer model is obsolete, these laws are anti-consumer and anti-business and need to be abolished.

But they are 20% of the tax base. Ain't obsolete at all to Jindals budget process. In fact, they are big players in the states


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CITWTT
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baton rouge
Member since Sep 2005
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re: Tesla Motor aint gonna make it. Heres why
quote:

Tesla is a very, very special car




Yeah it is, expensive as frick.


50Mullets
LSU Fan
A more civilized age
Member since Oct 2012
1433 posts

re: Tesla Motor aint gonna make it. Heres why
Can we roll this into a rider on the internet tax thing. The two seem quite related.


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TrueTiger
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13238 posts

re: Tesla Motor aint gonna make it. Heres why
There was a thread that touched on this on the OT.

OT thread

I don't think the all-electric vehicle is ready for prime time.

That said, I detest the protection racket and crony capitalism being attempted
to retard the innovation of sales via new technology. These statists need to embrace the future.

People buy cars online every day on ebay, so what is the big deal if its origin is the
manufacturer?


League Champs
Bayou Self
Member since Oct 2012
3682 posts

re: Tesla Motor aint gonna make it. Heres why
quote:

People buy cars online every day on ebay, so what is the big deal if its origin is the manufacturer?

Because Kia, Lexus, Mercedes, Toyota, Honda, etc would love to set up in a tax friendly state, close their dealerships, and sale direct

Ain't happening in our lifetime. Too much lost tax revenue

Plus you won't like it either when your income tax doubles to make up for people shopping online


TrueTiger
LSU Fan
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re: Tesla Motor aint gonna make it. Heres why
quote:

Too much lost tax revenue


In other words, the state won't give up its heroin.
This post was edited on 5/26 at 10:05 am


Lsut81
USA Fan
Member since Jun 2005
65769 posts

re: Tesla Motor aint gonna make it. Heres why
Just out of curiosity, won't this already be nixed due to the "Internet Tax Bill"

Wouldn't that make up for the lost sales tax at the local level?


ShortyRob
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Madison, AL
Member since Oct 2008
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re: Tesla Motor aint gonna make it. Heres why
Correct me if I'm wrong and I may well be but shouldn't a car sold to someone in a particular state generate a sales tax in that state regardless of is doing the selling? And, if not now, isn't that where the legislation targetting online sales was heading anyway?

Not to mention, how tough really would it be for states to simply pass a law saying when you register a car, if you haven't paid sales tax on that car, you must on registration?

I mean, I hate taxes as much as the next guy but the whole tax thing doesn't really appear to be the hurdle here.

The hurdle here looks to me to be simply a case of a dealer protection racket.


Powerman
LSU Fan
Corpus Christi, TX
Member since Jan 2004
121060 posts

re: Tesla Motor aint gonna make it. Heres why
quote:

Just out of curiosity, won't this already be nixed due to the "Internet Tax Bill"

Wouldn't that make up for the lost sales tax at the local level?


Good question



TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
13238 posts

re: Tesla Motor aint gonna make it. Heres why
quote:

if you haven't paid sales tax on that car, you must on registration?


This is my experience. When I moved from Texas to Louisiana and registered the car I paid a use tax which is based on the value of the care. So it works similar to an outright sales tax.

I think the state still gets their money so you are right, it is a dealer protection racket and the dealers have a strong lobby.


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ShortyRob
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re: Tesla Motor aint gonna make it. Heres why
quote:

Good question


I don't think taxes are why states are fighting Tesla's model. Those taxes would be EASILY solved via legislation. I can think of 10 ways off the top of my head to do it.

I think it is PURELY a dealer protection racket. The dealers have enough $$ to influence the politics in the state.


Lsut81
USA Fan
Member since Jun 2005
65769 posts

re: Tesla Motor aint gonna make it. Heres why
quote:

Good question


Thats one thing I tried to find out, but never could... Does that bill cover any transaction or is it only transactions via the internet?


For example: If I call up a store in Cali and buy a watch, as of right now I am not charged sales tax since they are shipping out of state. Will they now be required to?


League Champs
Bayou Self
Member since Oct 2012
3682 posts

re: Tesla Motor aint gonna make it. Heres why
quote:

if you haven't paid sales tax on that car, you must on registration?

Since current law prevents it from happening, I assume the Tesla is registered in Cali. Most folks don't rush to get their car registered in a new state, and its value would be greatly reduced since it would be a used car by the time it is registered. Thereby reducing the taxes. And some states don't require registration based on value = a ton of lost revenue in this case


ForeLSU
LSU Fan
The Corner of Sanity and Madness
Member since Sep 2003
35006 posts

re: Tesla Motor aint gonna make it. Heres why
quote:

And some states don't require registration based on value = a ton of lost revenue in this case


change registration laws...
abolish anti-consumer, protectionist laws...
case closed

local governments need to shrink anyway, lost revenue is a good thing.


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