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Koch Brothers, Sierra Club side with Tesla in dealer fight

The Koch Brothers and Sierra Club don't generally see eye to eye. When it comes to Tesla Motors and its efforts to tweak the traditional dealership distribution model, though, they're jumping across that proverbial aisle, according to Bloomberg News. Is this a great country or what? About 10 entities signed an open letter dated February 16 to US legislators imploring them to back the electric vehicle maker and its factory-to-customer distribution sales model. In addition to groups like the Consumer Federation of America and Institute for Justice, both the Koch's uber-conservative Americans for Prosperity and the ever-green Sierra Club are on that docket, with the former supporting the cause out of a desire for a more free market and the latter on board because of emissions-free transportation. Those entities all decry the traditional distribution system that they say restrains innovation and does not "rest on a legitimate public policy basis." Tesla has long been battling a number of states for the right to sell direct to consumers, with Michigan, New Jersey and Texas among the company's most hardcore adversaries. More recently, Connecticut and Arizona have made moves to legalize direct-to-customer sales from Tesla. You can read a copy of the advocacy letter (PDF). Featured Gallery 2015 Tesla Model S P85D: Detroit 2015 View 18 Photos News Source: Bloomberg News Government/Legal Green Tesla Electric dealer fight koch brothers

Dealers claim factory-owned Tesla stores are illegal

Unlike typical dealers, Tesla has a network of "stores" and "retail stores." While reservations can be made for a new Model S or Roadster at the retail store, Tesla says other versions of the store merely direct potential customers to make their reservation online. Most of these boutique-style stores are in shopping malls, and Tesla asserts that they are not sales facilities. It's an assertion with which traditional auto dealers are taking issue.
Dealers associations and networks across the country are doubling down their efforts to make Tesla's OEM showroom network illegal. Tesla has opened 17 stores in 10 states, as well as the District of Columbia.
Dealership associations contend Tesla's notion that sales are not made at these stores, stating that the showroom experience is still part of the sales process. To that end, dealer groups across the country have embarked in legal battles with the electric carmaker. The Illinois Secretary of State has informed Tesla that it is illegal to list CEO Elon Musk as the owner of its Chicago store. The Greater New York Automobile Dealers Association is looking into legal options against Telsa's Westchester store, as well as two others in New York. In Massachusetts, the opening of a store in the suburban Natick Mall is having its legality challenged by the dealer association in that state. California has laws in place that allow for a manufacturer to run its own dealership, as long as it is not within 10 miles of an existing dealer. That practice caught the ire of Chrysler dealers when the American automaker opened its own multi-brand showroom near downtown Los Angeles.

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.