Photo: Tesla
Do you know that moment when you’re really close to fulfilling a task, securing an important deal or being whiskers away from a big achievement? Well, Tesla is experiencing this in Utah, where they are being denied the license to sell cars despite its dealership being good to go.
The world would be a better place without many things, but when it comes to politics and bureaucracy, we wish these could be dropped as soon as possible. Unfortunately, this will not happen even though such concepts are standing in the way of progress for some, Tesla Motors included.
Which brings us to the main topic: Tesla Motors has been denied the license the sell cars in Utah because local law classified the company as a manufacturer and not a franchise owner.
According to The Salt Lake Tribune, laws in Utah and other states say that a manufacturer can not own more than 45 percent of a dealership. Therefore, they are forced to work with franchises, who play the middlemen role.
Tesla was hit hard by this since Elon Musk’s company had already built a showroom and filled it with cars, but since the state is reluctant in granting a license, everything has been put on hold indefinitely.
“We’ve been brought to a screeching halt. It’s kind of ironic that we have a state that is welcoming innovation and clean energy and basically we got halted in our tracks,” explained Jim Chen, vice president of regulatory affairs for Tesla Motors.
The news are sad indeed for Tesla customers and for the company itself, but the company has a precedent in facing such problems, as it ran into similar issues in Arizona, Texas and Connecticut.
The worst part is that ads have been posted online in search of employees and Tesla was expected to generate somewhere between $7 million and $10 million in its first year of economic activity in the state. Not to mention those jobs...
Which brings us to the main topic: Tesla Motors has been denied the license the sell cars in Utah because local law classified the company as a manufacturer and not a franchise owner.
According to The Salt Lake Tribune, laws in Utah and other states say that a manufacturer can not own more than 45 percent of a dealership. Therefore, they are forced to work with franchises, who play the middlemen role.
Tesla was hit hard by this since Elon Musk’s company had already built a showroom and filled it with cars, but since the state is reluctant in granting a license, everything has been put on hold indefinitely.
“We’ve been brought to a screeching halt. It’s kind of ironic that we have a state that is welcoming innovation and clean energy and basically we got halted in our tracks,” explained Jim Chen, vice president of regulatory affairs for Tesla Motors.
The news are sad indeed for Tesla customers and for the company itself, but the company has a precedent in facing such problems, as it ran into similar issues in Arizona, Texas and Connecticut.
The worst part is that ads have been posted online in search of employees and Tesla was expected to generate somewhere between $7 million and $10 million in its first year of economic activity in the state. Not to mention those jobs...
Google News