Is it possible for Tesla to just create a shell "autodealer dealer" company in each state. I am guessing they thought of that and legal language prevents its from working.
Elon Musk: To the People of New Jersey
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Re: Elon Musk: To the People of New Jersey
#72> An even bigger conflict of interest with auto dealers is that they make most of their profit from service, but electric cars require much less service than gasoline cars. There are no oil, spark plug or fuel filter changes, no tune-ups and no smog checks needed for an electric car. Also, all Tesla Model S vehicles are capable of over-the-air updates to upgrade the software, just like your phone or computer, so no v…
Don't even have to call it a "salespitch". A good product will sell itself. And it's quite clear a Tesla is a good product.
Re: Elon Musk: To the People of New Jersey
#73I'm not opposed to what Musk is trying to do but how or why are auto dealers a monopoly? Those direct sales laws were originally created to preserve small business.
Most dealerships would not count as "small" businesses. They are at the very least "medium enterprise" and at the most Fortune 500 companies[1]. http://en.wikipedia.org/wiki/Group_1_Automotive
Excellent link!
Some quick stats on the size of this particular "small" auto dealer company:
Trailing 12-month revenue: $8.9B Trailing 12-month gross profit: $1.29B CEO Pay: $2.5mm (for comparison, this is higher than the cash comp of the CEOs of GM and Microsoft)
I'm not sure this business needs regulatory protection from the likes of Tesla.
Re: Elon Musk: To the People of New Jersey
#74Earlier quoted context omitted.
How does the distribution mechanism in itself affect the quality? It's just a way of getting new software on the car. You can have the exact same standards of quality for an update installed over the air as one installed at a service centre.
The easier it is to update software, the less important that it is bug-free.
Until that bug causes a car to drive unexpectedly into a wall in the interim time until you've sent out a patch. The importance of being bug-free is much more driven by the potential damage caused by a bug than how quickly you can update the software.
Re: Elon Musk: To the People of New Jersey
#75His best line: > The rationale given for the regulation change that requires auto companies to sell through dealers is that it ensures 'consumer protection'. If you believe this, Gov. Christie has a bridge closure he wants to sell you! Unless they are referring to the mafia version of 'protection', this is obviously untrue. Nicely done, Elon. Nicely done.
Could you explain the reference please?
What everyone else said re: Bridgegate (thanks!) + the original line, which is a reference to the conman George C. Parker, who would sell things like the Brooklyn Bridge to unsuspecting tourists, which, according to Wikipedia, gave rise to the line "If you believe that, I've got a bridge I can sell you."
Re: Elon Musk: To the People of New Jersey
#76"Moreover, it is much harder to sell a new technology car from a new company when people are so used to the old. Inevitably, they revert to selling what’s easy and it is game over for the new company."
That's total BS. Any dealer who invests money in a new show room to sell a new brand of car (think of Mini which was picked up by many legacy BMW dealers and is sold in many mini only showrooms) is going to put in the effort to sell the product. We aren't talking about putting Teslas on the same floor as Mercedes. It would be trivial for Tesla to insist that the product be sold out of a dedicated facility which would cost a dealer money to construct. The idea that that dealer would simply push another product (or the salesman) in another showroom that he operates is ridiculous. And contrary to the behavior of existing multi line large dealerships.
Re: Elon Musk: To the People of New Jersey
#77His best line: > The rationale given for the regulation change that requires auto companies to sell through dealers is that it ensures 'consumer protection'. If you believe this, Gov. Christie has a bridge closure he wants to sell you! Unless they are referring to the mafia version of 'protection', this is obviously untrue. Nicely done, Elon. Nicely done.
Although personally satisfying for the writer, that is a pretty good example of something never to write in a letter that you want to positively influence a situation. Referring to a scandal by a politician when lobbying isn't really going to work, and all letters addresses "to the people" are lobbying.
Re: Elon Musk: To the People of New Jersey
#78Musk is massively disingenuous and rather insulting to our intelligence. But he's a heck of a salesman and makes a wonderful car. Like many persuasive people he arrives at an answer and backs into rationale but makes it appear the other way around. I'll give you just one example. The law of the land in NJ is that you can't sell in NJ unless through a dealership. That's the current law. Those laws need to change to al…
They're currently selling Teslas in NJ (without a middleman) and not having any legal problems because of it, so your example's premise seems to be flawed.
You have to dig deeper on the story than his post. They've been told for a long time that the license shouldn't have been issued and would be revoked and that a change in legislation was needed. Again, Musk knows all this. But it doesn't fit the dialogue.
Re: Elon Musk: To the People of New Jersey
#79Earlier quoted context omitted.
It is a terrific salespitch, especially in how it raises the subject of OTA updates while adroitly waltzing you past the obvious worry that a poorly tested OTA update will brick your car.
How does the distribution mechanism in itself affect the quality? It's just a way of getting new software on the car. You can have the exact same standards of quality for an update installed over the air as one installed at a service centre.
Except at a service center there's presumably the opportunity to replace the firmware chip or board if they brick it during the update whereas a bad OTA update leaves you little option.
OTOH I'd risk a bad OTA update 1% of the time if it meant avoiding the service center the other 99% of the time. And I'm sure a bad update is just a call and a tow away from a fix at a Tesla service center. Unless you're on a road-trip I guess.
Re: Elon Musk: To the People of New Jersey
#80Musk is massively disingenuous and rather insulting to our intelligence. But he's a heck of a salesman and makes a wonderful car. Like many persuasive people he arrives at an answer and backs into rationale but makes it appear the other way around. I'll give you just one example. The law of the land in NJ is that you can't sell in NJ unless through a dealership. That's the current law. Those laws need to change to al…
> The law of the land in NJ is that you can't sell in NJ unless through a dealership. That's the current law.
Are you suggesting that Tesla is actively breaking the law in NJ right now? The rule change doesn't take place until April 1st, which is why they have to close their store by then. If they aren't operating illegally right now, then the commission has ended our ability to purchase these cars.
Secondly, if you can only sell through a dealership, why can't Tesla just own some dealerships?