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FTC staff comes out in favor of Tesla, direct vehicle sales

On the subject of Tesla Motors and its efforts to legally sell its electric vehicles directly to consumers without franchised dealerships, the FTC has taken aim at Missouri and New Jersey. The Commission hasn't made any nationwide decision on the subject quite yet, but in a May 16 statement it encouraged the two states to reconsider policies that would further prohibit automakers from selling directly to consumers. And the FTC didn't mince words, calling such laws an example of "protection that is likely harming both competition and consumers." This is much further than the FTC has ever gone before in support of direct vehicle sales. FTC didn't mince words, saying such laws were "likely harming both competition and consumers." The statement follows an April blog post from three FTC officials, who wrote that the anti-direct sales mandates were "protectionist" and "bad policy." Tesla has been doing battle with a number of states as well as lobbying efforts from the National Automobile Dealers Association (NADA), which represents 16,000 new car and truck dealerships representing about 32,000 domestic and international franchises. The NADA has been supporting dealers who oppose Tesla's direct sales for years. In fact, Jonathan Collegio, vice president of public affairs for the National Automobile Dealers Association (NADA), maintained that the states need to retain the right to regulate the automobile sales distribution channel. "These arguments ignore the fact that fierce competition between local dealers drives down prices both within and across brands. When three Ford dealers compete for the same customer, the customer wins, period," Collegio wrote in an e-mail to AutoblogGreen. "Finally, it's a major fallacy to compare buying cars with buying other goods, like books or computers. New cars are major purchases that require licensing, insurance, complex financing involving trade-ins, contain hazardous materials, and if operated incorrectly can cause serious bodily injury." Tesla representatives didn't immediately respond to a request for comment from AutoblogGreen. New Jersey and Missouri have both been in the news lately. Garden State politicos have created a bit of a grey area, first voting in mid-March to stop Tesla stores from selling cars starting April 1, then extending the deadline to April 15.

Is Tesla building a new skunkworks facility in Lathrop, California?

Tesla Motors has a secret. The California automaker has leased, and is now renovating, a 431,000-square foot former Daimler-Chrysler distribution facility in Lathrop, CA, but is not saying exactly what it will be using the space for. At least, not yet. About an hour's drive east from its Fremont, CA factory, the property is located just off the north-to-south Interstate 5 (I-5) and has extra acreage to expand the building by another 124,980 sq-ft, if needed. Designed to handle a lot of shipping in and out, one side of the structure is gifted with 32 truck docking bays. With no official word on the type of activities that are planned for the facility, it is only natural that we would want to speculate a bit. There is one clue out there that can aid our hypothesizing. The job section of the company's website lists a number of openings that would indicate manufacturing of some sort is intended for the space. We'll go ahead and rule out serial vehicle production, since the Fremont space still has ample room for that activity to handle the upcoming Model X and the more affordable future vehicle. It's far too small to be a battery gigafactory, so could it be instead a kilofactory ? Probably not. Of course, it could just be a new site for producing components for the Fremont production lines, but that doesn't sound nearly as exciting. It also doesn't seem to be worthy of secrecy. The coolest – though not necessarily most accurate – thing we can come up with is a skunkworks. A secret lair where new concepts are conceived and developed away from the prying eyes of the public. Yeah, we'll go with that. When we contacted Tesla for clues about the facility's purpose we got a boilerplate response, though interestingly, they might have thrown us another mysterious bone in the process. And we quote, "Tesla is continuing to invest and create jobs in California as part of our ongoing infrastructure expansion. In the last two months, we have signed leases for more than 625,000 square feet of Californian real estate, independent of sales and service centers. These recent investments reinforce our commitment to California and will help us continue to bring compelling electric vehicles to market at affordable prices." With a 194,00-sq ft discrepancy between the known Lathrop acquisition and the numbers given by the automaker, it seems that may be yet another decent-sized unknown building in the mix.

Tesla expects another higher-volume deal with Toyota in next few years

Four months have passed since Toyota ended its relationship with Tesla Motors, in which the electric-vehicle specialist supplied full lithium-ion battery packs to the Japanese behemoth for its RAV4 EV rollout, of which 2,500 vehicles will be completed. Now, Tesla founder and CEO Elon Musk has been heard suggesting that a future collaboration is likely within the next two to three years, and that it will probably be much larger than the last one.
Both Tesla and Toyota have sung each other's praises in the not-too-distant past, Toyota telling Autoblog back in May, "We have a good relationship with Tesla and will evaluate the feasibility of working together on future projects." According to Automotive News, Musk said of the Japanese giant, "We love working with Toyota... We have a huge amount of respect for them as a company and certainly much to learn."
Interestingly, though, the two automakers have rather divergent strategies for eco-friendly automobiles. Toyota, as you're surely aware, is the clear-cut leader in hybrids and has thrown its massive support in the direction of hydrogen fuel cells, while Tesla has invested heavily in battery-electric technology and high-speed charging stations.