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Tesla now California's top automotive employer

Tesla has knocked off Toyota as the biggest auto employer in the state of California, employing over 6,000 people to the Japanese company's 5,300. That lead is only likely to grow, as the EV manufacturer prepares to add another 500 jobs by the end of the year, and as Toyota begins its relocation to its new North American headquarters in Texas. The news comes barely a week after the company announced a $50 million loss during the first quarter of 2014.
Tesla's statewide employment could be set to double, beyond even 6,500 people, if it follows through on rumors to construct its eagerly awaited gigafactory in the Golden State. The $5-billion venture could add another 6,500 employees, making Tesla not just the largest automotive employer in the state, but making it one of the largest employers in the state full stop.
The investment of Tesla and its founder (and real-life Tony Stark), Elon Musk, has been substantial. The company has added 3,000 employees in the state since 2013, reopening the Toyota and General Motors joint-venture factory that use to be known as NUMMI in 2009 and constructing a design studio in Los Angeles, all in addition to its Palo Alto headquarters.

Iowa gives Tesla the red light on direct sales

The Iowa Department of Transportation was recently tipped off that Tesla Motors was offering test drives in the state. This led to the state DoT shutting down those test drives in West Des Moines earlier this month, according to USA Today. Tesla reps said that the company was just trying to offer test drives and wasn't actually trying to sell cars, but that argument didn't fly. The issue is that Tesla is neither licensed as an auto dealer nor is allowed to sell its vehicles directly to customers because of franchised dealership laws. Iowa stands among states like Texas, Arizona, New Jersey and Maryland in its position that a third-party franchised dealership is legally required for car sales. Recently, Georgia said it may revoke Tesla's dealer license because of opposition from the Georgia Automobile Dealers Association. On the flipside, Tesla won a recent legal victory in Massachusetts. Oh, and the tip to the Iowa Dot? It came from the Iowa Automobile Dealers Association.

Michigan Gov. signs 'anti-Tesla' bill, but says rules could change *UPDATE

*UPDATE: GM has issued a statement in support of the governor's actions. We've added it below. Don't look for a Tesla store in Detroit anytime soon. Even though the company says a Motor City service center is "Coming Soon," another hurdle was placed in the company's way today when Governor Rick Snyder signed House Bill 5606 into law. The law was introduced by State Representative Aric Nesbitt, who said it is not "anti-Tesla at all." Still, 5606 does clarify and strengthen the state's laws against an automaker selling vehicles directly to consumers, which is why Tesla called on its supporters last week to ask Snyder not to sign the bill into law. That didn't work. The bill passed the Michigan legislative chambers with overwhelming support last week (106-1 in the House, 38-0 in the Senate) and Snyder said that his team's research found it "doesn't change current law at all." He nonetheless thought it was worth signing, and you can watch him explain why in the video below. He also mentions a letter he attached to the bill saying he's open to future discussions regarding direct vehicle sales. He does not mention his campaign support from numerous auto dealers. We have asked Tesla for a comment on this latest development and will let you know when we hear back. Last week, the California automaker called the legislation "harmful to consumers." This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Gov. Rick Snyder signs bipartisan bill clarifying existing direct auto sales law Calls for healthy, open discussion on potential changes to business model; also signs one other bill into law Tuesday, Oct. 21, 2014 LANSING, Mich. – Gov. Rick Snyder today signed bipartisan legislation that clarifies and strengthens an existing law about direct auto sales in Michigan. House Bill 5606, sponsored by state Rep. Aric Nesbitt, also prohibits auto manufacturers from dictating fees franchised dealers can charge customers. The legislation allows individual auto dealers to make the business decision whether to charge the transaction fee. The bill was approved by 38-0 in the state Senate, and 106-1 in the state House of Representatives. Snyder said Tuesday there has been a misunderstanding about the legislation.