RE: The End Of The Car Dealership

avatar

You are viewing a single comment's thread:

The issue with car dealerships are they are protected by laws in the states.
That say manufactures can not sell directly to consumers.

Until these laws change car dealerships are a protected industry.

Many times people have tried to change these laws but the Car Dealerships as a group donate large amount of money to political campaigns in each state.

I wish this would change but if nothing changed after the government bail outs of the auto industry I don't see this changing anytime soon.



0
0
0.000
7 comments
avatar

As far as the sales projections for Tesla they are limited by 2 issues.
1: the car dealership issue above. There is many states you can not buy a Tesla in
2: the USA power grid. The current US power grid can not handle that large of a growth of electric cars. This is a large issue no one is talking about.
If 5% of the Auto Fleet becomes Electric the whole country will have rolling blackouts.

When it comes to this large of change of technology there are always underlying issues that get over looked.

0
0
0.000
avatar

You are correct. Of course, there are something like 280 million cars on the roads in the US so it will take some time even to get to the 5% mark.

The reality of the situation, in the US and elsewhere, is so much more energy is going to be required globally that the idea of non-fossil fuels is going to hamstring most countries.

We will see the insanity end sooner rather than later. Putin is going to absolutely gouge every Western European country this Winter over gas. He has it and they need it.

People are going to learn the hard way what life is like without these type of fuel sources.

Posted Using LeoFinance Beta

0
0
0.000
avatar

There are about 10 states that is true. One of them, ironically, is Texas, where Tesla is building their largest factory. The legislature doesnt meet for another two years (it is part time in that state) so all Teslas made in Texas will have to be transported out of state to be sold to Texans.

I am going to guess that the next time the legislature meets, there will be a different turn out.

Tesla is going to overturn these laws as their cars start to penetrate those states. So I guess in 5 years, all those laws are gone as many car dealerships close down.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I hope so, but I don't see it happening that quick.
At least in Colorado it is not on the Horizon and we are about to tax electric cars by the mile driven at a high rate.

0
0
0.000
avatar

If Tesla is pumping out 6-7 million cars in 5 years, I see half of them coming out of their US factories. If that is the case, it could end up really harming some of those states with the laws protecting dealers. As those cars get in the hands of owners, it strengthens that position while also weakening the dealerships.

Just follow the flow of money. The less for the dealerships, the worse their situation.

Of course, this does lead back to the grid problem you just mentioned. Some states like Florida will do well. Others like those in the Northeast will struggle.

Posted Using LeoFinance Beta

0
0
0.000