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Ohio senator with deep dealer ties proposes anti-Tesla bill

The fight against customer-direct car sales by Tesla Motors continues around the US, and the California-based company can now count dealership groups in Georgia and Ohio among its adversaries. In Ohio, Tesla has opened company-owned stores in Cincinnati and Columbus and is now fighting a state dealership association that's pushing for legislation that explicitly outlaws direct dealer-to-public sales after a lawsuit against Tesla was dismissed last week, Automotive News says. The proposed law (Senate Bill 260) would prevent any entity from selling vehicles if it "is a manufacturer, or a parent company, subsidiary, or affiliated entity of a manufacturer, applying for a license to sell or lease new or used motor vehicles at retail." Under Ohio's current laws, Tesla says its stores are perfectly legal, but clearly that would would drastically change if SB260 becomes law without some sort of provision to 'grandfather' dealers opened before the legislation passes. Ohio's dealers say Tesla threatens their network since it sets a precedent for other automakers to use the same practice. The politician behind the bill received at least $42,825 from dealership owners, employees and PACs. The politician behind the anti-Tesla bill in Ohio is Senator Tom Patton (R-Strongsville), who "received at least $42,825 from state and national auto dealership owners, employees, and political action committees (PACs) between 2002 and 2013," according to Media Trackers. His Facebook page is filling up with negative comments about his "crony capitalism" actions. Meanwhile, a Georgia exemption from that state's prohibition of automaker-to-public sales states that a company can directly sell as many as 150 zero-emissions vehicles a year, the Atlanta Business Chronicle says. Tesla sold about 500 of its Model S sedans there last year, with the rest of the cars being registered in California. The automaker is looking to expand that exemption tenfold to 1,500 vehicles. Georgia and Ohio join states such as Massachusetts, New York and Texas that have done battle with Tesla and its business model, with Texas thus far being the most formidable opponent. CEO Elon Musk said last year that he may go to the federal government to get such laws changed on a national level. That's not surprising since Tesla's preparing to start selling its Model X crossover and could unveil its cheaper EV (possibly called Model E) at the Detroit Auto Show next year.

Why Tesla will need more loans to make it through 2013

It's fun to bet against Elon Musk and Tesla - that's the best reason we can find for so many people doing it even though the man, his company and his cars are still here and still very popular. The latest name inscribed in the column labeled "Skeptical of Tesla" is John Shinal at Market Watch who, in year-end commentary on Tesla's financials, says that the "carmaker's financials are reminiscent of a dot-com's." He does not mean that in the good way.
To be fair, Shinal isn't exactly betting against Tesla, he's saying that if you check the bottom lines, the only thing keeping Tesla alive is the hundreds of millions in Federal Department of Energy loans it has received. Based on its filings, he says the company has less than six months of cash on hand, hasn't produced as many cars as it promised and had to lower its revenue forecast for 2012, has had a "year of net losses and negative operating cash flow," and was underwater by at least $37 million at the end of the third quarter.
But Shinal's not done there, summarizing Tesla as an operation with "a poor habit of failing to deliver to customers the cars it has promised them, while simultaneously raising the prices of those yet-undelivered cars," and "a lousy level of customer service." He says there are more damning things to be found in Tesla's SEC registration settlement from September, but we'll have to wait for his next column to find out what those are. The takeaway, in Shinal's opinion, is that even though Tesla will keep getting money from the government, that investors have no business dealing in Tesla stock.

Tesla lowers Model S lease price, adds 3-month 'happiness guarantee'

Tesla Motors is offering an enticing deal for potential buyers who might not be entirely sure whether they actually want to own a Model S for the long term. A deal through US Bank not only lowers the cost to lease the EV but also turns leasing the brand's electric sedan into a long-term rental.
Curious buyers who lease a Model S are now able to return it in the first three months with no penalties and with the remaining payments waived, something Tesla is calling the "happiness guarantee." CEO Elon Musk announced the deal on the company's blog, and he said the payments were also as much as 25 percent lower because US Bank "has a much lower cost of capital than us." Currently, a Tesla lease starts at around $800 and can be up to $1,300, with down payments around $6,500. Tesla leasing is available in 38 US states (full list below).
Of course, there is a catch for the offer. If people turn in their Model S within three months, they can't immediately lease another one. Musk doesn't say how long the wait is.