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Tesla Might Be Forced To Close Up Shop in Oklahoma, a New Bill Is To Blame

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Oklahoma State Legislature is looking into adopting House Bill (HB) 3994, which, if enforced, might make Tesla leave for good. This new piece of legislation would also mean that Panasonic might choose another state like Kansas for its new battery plant. Here’s what you should know about the whole situation.
Tesla might now have a proper media department to keep in touch with the press like all other manufacturers do, but the company is very keen on staying up to date with everything that matters regarding making and selling EVs. That’s why there’s a Tesla Policy Team. Its mission is to watch everything that happens where Musk’s company is active or plans on doing business there.

Unlike other automakers, this Policy Team also keeps in touch with customers directly. That’s how Americans from Oklahoma that have or want a Tesla learned their state might soon make selling and buying a Tesla a very unpleasant experience – or one that might not be possible at all.

As you might know already, Tesla was keen from the start to sell its cars directly without help from intermediates. This method proved successful, as people liked to not have to haggle for discounts or search too much for the right car for them. Elon Musk’s company made it easier than ever to buy a car. This has upset some people. Dealership owners are still frustrated that they can’t take a bite out of Tesla’s sales. Rivian is looking to do the same, and online shopping might make dealerships completely irrelevant sooner rather than later.

That’s why Mike Dobrinski, who describes himself as being an “honest businessman and farmer,” introduced a proposal to ban carmakers from selling their cars directly to customers in Oklahoma. HB 3994 aims to forbid a factory or an entity affiliated by any ownership or control by the factory in becoming a licensed motor vehicle dealer. It also introduces a direct shipper license that has an initial fee of $300, then $100 annually for renewal.

Moreover, factories would be forced to provide leads (prospect client data) for said dealerships without expecting anything in return. Fines are also included and are set to a maximum of $10,000.

Essentially, this bill, if enacted, would prohibit the delivery of a new motor vehicle by a common or permit carrier or other conveyance unless the delivery is made by a licensed motor vehicle dealer or motor vehicle direct shipper.

Tesla says on its website that “Oklahoma should focus on increasing revenue and jobs in the state, not stifling competition and limiting consumer choice.” The company is asking people to message their elected officials and request a “nay” from them when this bill will come to the floor. You can check the full address in the down below attachment marked as Press Release.

While Tesla was the first to take a stand against House Bill 3994, other carmakers risk the same issues. They might soon have to pick a side if they want to remain active in Oklahoma, a state which already has some weird EV laws in place.

Mike Dobrinski was also a co-owner of a now-closed Chevrolet, GMC, and Buick dealership.
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Editor's note: The writer isn't politically affiliated and doesn't own shares in the abovementioned companies.

 Download: HB 3994 (PDF)

Press Release
About the author: Florin Amariei
Florin Amariei profile photo

Car shows on TV and his father's Fiat Tempra may have been Florin's early influences, but nowadays he favors different things, like the power of an F-150 Raptor. He'll never be able to ignore the shape of a Ferrari though, especially a yellow one.
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