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Governor Snyder signs a law to ban Tesla direct sales in Michigan

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Re: Governor Snyder signs a law to ban Tesla direct sales in Michigan

#21
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I believe that this law is in direct violation of the commerce clause[1]. The commerce clause was designed to prevent tarrifs from being placed on products from one state being sold in another state. They wanted to prevent inter-state trade wars. Being forced to go thru a dealer network that (theoretically) adds no value while extracting a cut of sales is a form of a tarrif (or at least, I think it is arguably one).…

This wouldn't be a violation of the commerce clause per se. The commerce clause just says that the federal government has the authority to regulate interstate commerce. In other words, the US legislature could pass a law prohibiting these restrictions on Tesla sales, and that law would be constitutional.

> The commerce clause just says that the federal government has the authority to regulate interstate commerce.

This is not completely correct. Let me expand a little bit even though it is not applicable here. There is something called the "dormant" commerce clause (also referred to as the "negative" commerce clause) doctrine. This doctrine basically prohibits states from favoring in state commercial actors at the expense of out of state actors. Think protectionist legislation. Therefore, there is a lot more to the commerce clause than simply allowing the federal government to regulate interstate commerce.

Re: Governor Snyder signs a law to ban Tesla direct sales in Michigan

#22
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Earlier quoted context omitted.

You do understand that electricity is still needed to charge these cars, right, and that a lot of that energy comes from oil (or worse, coal).

When I was a kid, I saw the movie Logans Run (1970s). They made it to washington DC and found a car. They didn't know what it was, but they shined a light on it, and it started to activate and so they conclduded "maybe this thing is powered by the sun"... and it was. Well, it's been 40 years since that movie was made. Alas, a solar powered car may still be many years off... but the elegance of it is certainly extreme…

Unfortunately that was only science fiction. I don't think the sunlight that lands on a car would be sufficient by itself to charge the system to any acceptable level.

Re: Governor Snyder signs a law to ban Tesla direct sales in Michigan

#23
post #18

Does this really surprise anybody? Remember which state Detroit is in?

This also blocks GM/Ford/Chrysler from selling directly to the consumer. This isn't specifically Tesla focused, but is favoring the auto dealer network which wants to remain relevant and get their cut.

Re: Governor Snyder signs a law to ban Tesla direct sales in Michigan

#24
post #10

Snyder gets a lot of money from Ford, GM, et. al. The United Auto Workers gave the DGA about $1 million, according to MCFN. The union was the largest donor from Michigan, followed by the Service Employees International Union, the Michigan Regional Council of Carpenters, Ford Motor Company and Caidan Management. http://www.mlive.com/lansing-news/index.ssf/2014/10/michigan...

[deleted]

Re: Governor Snyder signs a law to ban Tesla direct sales in Michigan

#25
post #23
post #18

Does this really surprise anybody? Remember which state Detroit is in?

This also blocks GM/Ford/Chrysler from selling directly to the consumer. This isn't specifically Tesla focused, but is favoring the auto dealer network which wants to remain relevant and get their cut.

Since only Tesla actually wants to sell direct (and in fact needs to due to the unique nature of their product), this does in effect only target Tesla. It just doesn't look so targeted to the layperson, which is likely why they can get away with this.

Re: Governor Snyder signs a law to ban Tesla direct sales in Michigan

#26
post #7
post #3

What is his problem? I think they are all trying every-possible-trick-under-their-belly to slow down the storm called TESLA. The day TESLA becomes mainstream the mafia of car dealers, oil rigs will go down the drain. NO MORE OIL.

You do understand that electricity is still needed to charge these cars, right, and that a lot of that energy comes from oil (or worse, coal).

It might be a minor improvement, but it's still an improvement.

Oil burned in a plant is higher efficiency than when burned in individual, smaller-scale engines.

Stated as a corollary: imagine how dirty having per-car coal furnaces would be...

Re: Governor Snyder signs a law to ban Tesla direct sales in Michigan

#27
post #5

How are these people justifying these changes to their constituents? It's pretty hard to justify mucking with the free markets except to protected vested interests. Most of the time, these vested interests have very little to do with the voters.

No justification is required because it's pretty much baked into the mentality of the Midwest. The auto industry is what drives the Michigan economy (at least its most populous areas). Therefore most constituents not only don't mind, but likely fervently support such laws. The same could be said for the United Auto Workers. Pretty much the opposite of the free market, yet most people in Michigan support it because either they or somebody they know relies on the benefits created by the union.

Further, few people in Michigan can afford a new Ford, let alone a $60,000 electric car. If Tesla wants to lobby for free market economics, Michigan is probably the very last state they should be trying to convince.

Re: Governor Snyder signs a law to ban Tesla direct sales in Michigan

#28
post #23

Earlier quoted context omitted.

This also blocks GM/Ford/Chrysler from selling directly to the consumer. This isn't specifically Tesla focused, but is favoring the auto dealer network which wants to remain relevant and get their cut.

Since only Tesla actually wants to sell direct (and in fact needs to due to the unique nature of their product), this does in effect only target Tesla. It just doesn't look so targeted to the layperson, which is likely why they can get away with this.

[deleted]

Re: Governor Snyder signs a law to ban Tesla direct sales in Michigan

#30
post #16
post #4

I believe that this law is in direct violation of the commerce clause[1]. The commerce clause was designed to prevent tarrifs from being placed on products from one state being sold in another state. They wanted to prevent inter-state trade wars. Being forced to go thru a dealer network that (theoretically) adds no value while extracting a cut of sales is a form of a tarrif (or at least, I think it is arguably one).…

Michigan is not discriminating against Tesla. They are not saying "only Tesla may not sell direct to consumer." Instead, they are saying "No auto manufacturer, regardless of their state, may sell direct to consumer." Thus, no commerce clause violation.

What would stop Musk from making a company whose sole purpose was to be a Tesla dealership? It would buy cars from Tesla, sell to consumers, and sell Service Arrangements with Tesla, etc.
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