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FTC officials question 'bad policy' that stops Tesla's direct sales

It looks like Elon Musk has a new group of allies over at the Federal Trade Commission. Writing on the FTC blog, three high-level FTC officials came out against the "protectionist" network of laws in the US that govern automotive dealers and prevent, in some cases, Tesla Motors from selling its cars directly to customers. They called the rules, "bad policy for a number of reasons." They write: [The legal] protections expanded until in many states they included outright bans on the sale of new cars by anyone other than a dealer-specifically, an auto manufacturer. Instead of "protecting," these state laws became "protectionist," perpetuating one way of selling cars-the independent car dealer. The post is not a call to arms, but more of a position statement co-authored by Andy Gavil (director of the Office of Policy Planning), Debbie Feinstein (director of the Bureau of Competition), and Marty Gaynor (director of the Bureau of Economics). "The collective [cost] impact of [the state-by-state battles] is one of the major concerns here. [Tesla is] just trying to sell their cars" – Andy Gavin Gavil told AutoblogGreen that the main goal was to bring attention to the issue, which the post has certainly done. There are so many of state fights going on, he said, that this was a way to reach a lot of people at once. "We've been watching this for months," he said. "It's very clearly a state-by-state battle. We are concerned about Tesla litigating state-by-state. The collective [cost] impact of that is one of the major concerns here. They're just trying to sell their cars. The way the industry is reacting shows that it's about more than that." Gavil wouldn't go so far as to say that there should be new national rules – it's up to Congress to do that, he said - but he has also been looking at the taxi industry and the upstarts like Lyft and Uber. The competition angle sometimes doesn't get the attention it deserves, he said. "If there's a more open debate about it, that can only be a good thing." One of the groups opposed to Tesla's direct sales is the National Automobile Dealers Association (NADA), which represents 16,000 new car and truck dealerships with about 32,000 domestic and international franchises.

Lucid Air, VW ID.4 AWD and Polestar 2 Single Motor driven | Autoblog Podcast #704

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Autoblog Green, John Beltz Snyder. Greg's been driving the Volkswagen ID.4 AWD and the Lucid Air, while John has been in the Mini Cooper Hardtop and Polestar 2 Single Motor. They discuss the big Rivian news of the week, its stellar IPO. They take a question from the mailbag about whether to sell a Tesla Model 3, and they help a listener decide whether to buy a Ford Maverick or some other pickup. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #704 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown What we're driving2022 Volkswagen ID.4 AWD Pro 2022 Lucid Air 2022 Mini Cooper Hardtop 2022 Polestar 2 Single Motor Rivian's IPO Mailbag: To sell or not to sell a Tesla Model 3 Spend My Money: Ford Maverick FX4 or something else? Transcript Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Is Tesla quietly sitting on 3,000 cars?

Tesla's 2014 third quarter financial report mixed some positive news with gloomy messages. On one hand, the electric carmaker posted its best quarter ever in terms of deliveries, including its best single day with 907 EVs delivered. The company also announced expanded production to get even more vehicles out the door by the end of 2015. However, the Model X got delayed yet again and higher prices in Europe were mulled. Dousing the results with a bit more cold water, a Merrill Lynch investor letter claims there's more to be pessimistic about the business than meets the eye.
The Daily Kanban, quoting research meant for Merrill Lynch clients, claims that Tesla had "approximately 3K vehicles stocked in inventory or in transit" at the end of the Q3. That's a fairly large number considering that the company reports selling 7,785 units for the whole quarter. The statement is also surprising because the automaker has a reputation for keeping excess supply low, and there are allegedly waiting lists for Model S sedans. CEO Elon Musk maintains that the automaker has a problem being able to keep up with high demand, as well.
According to Daily Kanban, the letter further states, "China is proving to be more challenging for Tesla to penetrate than expected." The automaker does not break out sales by region in its Q3 financials to check this assertion, however, the company does report the recently opened store in Shenzhen is one of its top-grossing stores worldwide and that there are now 23 Supercharger locations in 10 Chinese cities.