Tesla Selling In Nebraska

Feb 28, 2019   

My google alert sent me this story this morning from the Omaha World Herald. Read it below and link to source is there too.

Selling Teslas. Current state law prohibits auto manufacturers from selling directly to consumers, so Nebraskans who want to buy a Tesla — which sells directly to consumers — must arrange the purchase through outlets in Colorado, Missouri and other states.

Tuesday, State Sen. Tony Vargas argued that current state law is antiquated and anti-competitive, and that Nebraskans should be able to avoid the hassle.

“The fact is, consumers are going to purchase these cars. The question is, can they purchase them in Nebraska?” Vargas said.

His proposal, Legislative Bill 51, would allow Tesla to establish stores and service centers in Nebraska, Vargas said, without disturbing the traditional dealer-franchise relationship used by other automobile firms.

Tesla has been selling its high-end, all-electric cars since 2008 and has built a series of charging stations in the state. But the company has been unable to get an exception in Nebraska law due to opposition from auto dealers in the state. A similar bill introduced by Vargas in 2018 failed to advance.

A series of Tesla owners testified in favor of LB 51 and the added convenience it would provide.

But Loy Todd of the Nebraska New Car and Truck Dealers Association said his dealers provide 9,000 jobs in the state, invest millions in dozens of communities and compete fiercely on price for customers. If manufacturers were allowed to sell directly, there would be few outlets in Nebraska, he said, and dealers in smaller towns and cities would be put out of business.

Todd added that at least 25 other states have laws similar to Nebraska’s. The Legislature’s Transportation and Telecommunications Committee took no action on the bill after the public hearing.

Capitol Digest: Tesla trying again to sell cars in Nebraska | Legislature | omaha.com http://bit.ly/2EhULWG

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Adam Qureshi