The Real Deal New York

NY lawmakers to Tesla: Get a showroom

High-end electric car manufacturer may soon be in the market for retail space
February 27, 2014 06:07PM

Proposed legislation to ban car manufacturers from selling directly to consumers could impact the use of retail space to sell new vehicles in New York City.

Cars are already required to be sold in traditional dealerships. But some car makers have found a way to get around the law. Tesla Motors, which builds high-end electric vehicles, created subsidiaries to sell its cars from mall kiosks.

A group of New York’s automobile dealers are pushing for the bill, saying Tesla has an unfair advantage because the company doesn’t have the overhead of selling from a showroom, according to Capital New York.  Governor Andrew Cuomo has said he will sign the legislation, should it pass.

Tesla expects to sell 35,000 of its 2014 electric vehicles this year — a 55 percent jump over sales last year, according to Capital New York.

In Miami, Tesla has leased showrooms for its cars since 2009. [Capital New York] — Angela Hunt

  • WannaBeLandlord

    “Unfair advantage” Sounds like some dealerships are afraid of Elon Musk. Potamkin lot in Harlem is already worth more as land than a crappy Mitsubishi/Hyundai dealership.

  • Alan Dean Foster

    Yes; I want my auto purchases to be protected and overseen by a benign, philanthropic coalition of car salesmen. Uh-huh.

  • Chandy Pand

    It is clear Tesla is doing something incredibly right. Very few people – if any – benefits or see value in dealerships. Ford, GM, Kia are the type pushy. BMW, Audi, Benz are the type of arrogant. I do not know which one is worse.

    Here in our state I (we) called senators and drove to the capital. It was big time victory for capitalism and free society.

    Please fellow New Yorkers, do the same. Call your representative and drive your nice Teslas and whatever car you got to the streets in front of the representative office to demonstrate the absurd this proposal against free market forces is.