Tesla Accuses GM of Writing a Bill to Stop Them from Selling Cars in Indiana

Tesla Motors feels it is under threat in Indiana from a new legislation proposition. The company decided to address owners and enthusiasts in the area to help them stop the bill from passing.
Tesla Model S 1 photo
Photo: Tesla
According to Ars Technica, the new bill would prohibit car manufacturers from holding a dealer license after December 31, 2017. Since Tesla’s entire business model leaves dealers out, the company would not have a future in Indiana if the bill passed.

Tesla accuses General Motors of having a link to the particular law, but they have not provided any evidence to support their claim against one of Detroit’s Big Three.

The letter Tesla wrote to their customers asks them to contact Indiana representatives and senators on the Commerce and Technology Committee to express their resentment for the new bill.

Tesla holds a license to sell its vehicles directly in Indiana since 2014. The brand from California has encountered several similar issues in other states, where dealer networks wanted to prevent the company from directly selling their cars.

Meanwhile, General Motors did not confirm its involvement in the HB 1254 (the bill Tesla wishes to stop) but stated that they support the initiative. They believe that “all industry participants should operate under the same rules and requirements.

GM officials claim their nationwide dealer network is superior to Tesla’s business model, as it provides support for customers in every US state. Furthermore, GM believes Tesla should stop asking for “unique rules and individual exceptions to suit their interests.”

As some of you know, Tesla Motors believes it is best to sell their cars directly to customers, without dealer franchises. This goes against the traditional automotive industry players, and several brands have questioned Tesla’s business model in the past years. However, the company from California lives on and isn’t giving up without a fight.

Tesla is ahead of traditional automakers in the electric vehicle department, and it is evident why some manufacturers might want to impede sales of these cars.
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 Download: Indiana legislators who signed new dealer licensing requirements for manufacturers (PDF)

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About the author: Sebastian Toma
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Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
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