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Georgia dealers sue to limit Tesla sales
- Thread starter Chickenlittle
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Merge: Outraged over Georgia Bureaucracy
Tesla's latest battleground state: Georgia - Sep. 2, 2014
Anyone interested in rattling some political cages?
I just ordered a Model S about a month ago, just found out about this oppressive dealers association nonsense. I figure they have to have some politicians in their pockets as well. elections are coming up soon. let's make some noise and make a difference.
Tesla's latest battleground state: Georgia - Sep. 2, 2014
Anyone interested in rattling some political cages?
I just ordered a Model S about a month ago, just found out about this oppressive dealers association nonsense. I figure they have to have some politicians in their pockets as well. elections are coming up soon. let's make some noise and make a difference.
chickensevil
Active Member
Tesla Denies Georgia Dealers’ Claims That It Broke Rules - Bloomberg
Sorry for the mobile link I'm doing this from my phone
Tesla responded to the claims stating that they are in compliance with the law since it is based on calendar year... Also I don't know how anyone can claim each car isn't "custom" built... Since you can't buy them off a lot... So dumb... But anyway nice to see a Tesla response on this!
Sorry for the mobile link I'm doing this from my phone
Tesla responded to the claims stating that they are in compliance with the law since it is based on calendar year... Also I don't know how anyone can claim each car isn't "custom" built... Since you can't buy them off a lot... So dumb... But anyway nice to see a Tesla response on this!
araxara
X-LR M3AWD, MYLR
I'm sure Georgians will be able to order cars online like other people in states where Tesla can't sell directly.
bollar
Disgruntled Member
Dealers know how many deliveries to Ga but can they tell how many were ordered via Internet or sold via store? I doubt it
chickensevil
Active Member
My guess would be the initial registration and the "birth" information of the car would all state the Marietta Store. (For example my car was all claimed to have been purchased in the New Jersey store... that is, before they killed them). Once Tesla registers 150 cars from that store (they only have one right now, right?) they would then just have to force all the cars to originate from out of state.
This really is just a convenience factor on the part of the customer that is unfortunate when they go over 150. Now the customer will have to take all the paperwork from their out of state sale to the DMV and have them run all the information for them and pay the sales tax there (although, I think GA has an exemption for that, right? So it really is just the time inconvenience right?)
I am sure there are some other things Tesla might have to be careful about here, once they hit 150, but there should be a workaround. Bottom line, their "dealer license" would be for each of the stores (and likely also the service centers) so if the car's paperwork states that it was bought from one of those places that would count against their total. Doesn't matter if someone never set foot in a Tesla store, it boils down to the way the paperwork is ran.
The easiest way to check? Did you get issued a GA temporary tag when you bought your car, or was it from out of state. If you start seeing a bunch of Teslas with, say, CA temp tags on them, you will know that Tesla has reached their limit and had to back off their "sales".
This really is just a convenience factor on the part of the customer that is unfortunate when they go over 150. Now the customer will have to take all the paperwork from their out of state sale to the DMV and have them run all the information for them and pay the sales tax there (although, I think GA has an exemption for that, right? So it really is just the time inconvenience right?)
I am sure there are some other things Tesla might have to be careful about here, once they hit 150, but there should be a workaround. Bottom line, their "dealer license" would be for each of the stores (and likely also the service centers) so if the car's paperwork states that it was bought from one of those places that would count against their total. Doesn't matter if someone never set foot in a Tesla store, it boils down to the way the paperwork is ran.
The easiest way to check? Did you get issued a GA temporary tag when you bought your car, or was it from out of state. If you start seeing a bunch of Teslas with, say, CA temp tags on them, you will know that Tesla has reached their limit and had to back off their "sales".
I bought my car before there was a store. Some stuff said Dania Beach, but it eventually was through Fremont.
You had to go to the state tax office and pay sales tax. But this is no longer a requirement as all vehicles are no longer subject to sales tax.
Then you have to go to the DMV and pay your tag fees. This is where you pay your Title ad valorem tax (which is slightly more than sales tax is some counties, slightly less than others). Then you get your tag.
Then all the hoop jumping to get your state income tax rebate is a nightmare. But I don't think Tesla helps with this (they might).
But yes now it is only going down to the DMV to get a tag, and title. You pay 6.5% tax to get the title, and you have to have your insurance ready.
chickensevil
Active Member
Yeah, your hoops to jump through sound like what I had to go through in VA (only no expected rebates... cause VA is mean like that.)
I know midlifecrisis bought his in the Marietta store and took delivery in like Jan or Feb of this year, so I will ping him to see if he can shed some light.
Red Sage
The Cybernetic Samurai
I do not know how accurate this is, as I've not looked it up again... But I believe there were articles some months ago that posted the issue in Georgia was specifically relative to the State Electric Vehicle Rebate. As I remember, the problem was that the EV Rebate was limited to 150 total for each individual manufacturer in the state, per year. So, whether Nissan Leaf, Chevrolet Spark EV, or Tesla Model S -- only 150 purchases per year were eligible for the rebate.
Apparently this latest dispute is over a provision of Tesla Motors exemption as a manufacturer to sell direct to end users. The dealerships are harping on the 'custom built' language... It seems that they are saying that the annual 150 EV Rebate limit means that a car company that only sells EVs can ONLY sell 150 cars per year. I suspect they are completely wrong, combining or confusing their arguments, in a desperate attempt to thwart a potential threat to their own sales model.
"Georgia dealers sue to limit Tesla sales"
I think that title is not quite accurate... Sure, there is a connotation of the word 'sue' that means 'make a plea for remedy'... But the word is typically used for legal action in a court of law. As others have mentioned, dealership associations have learned to their dismay that formal legal actions have a strong tendency to go against their wishes. They want to avoid shooting themselves in the head, while they shoot themselves in the foot.
Perhaps something like, "Georgia Dealers Accuse Tesla of Breaking State Sales Limit" would be more appropriate.
Apparently this latest dispute is over a provision of Tesla Motors exemption as a manufacturer to sell direct to end users. The dealerships are harping on the 'custom built' language... It seems that they are saying that the annual 150 EV Rebate limit means that a car company that only sells EVs can ONLY sell 150 cars per year. I suspect they are completely wrong, combining or confusing their arguments, in a desperate attempt to thwart a potential threat to their own sales model.
"Georgia dealers sue to limit Tesla sales"
I think that title is not quite accurate... Sure, there is a connotation of the word 'sue' that means 'make a plea for remedy'... But the word is typically used for legal action in a court of law. As others have mentioned, dealership associations have learned to their dismay that formal legal actions have a strong tendency to go against their wishes. They want to avoid shooting themselves in the head, while they shoot themselves in the foot.
Perhaps something like, "Georgia Dealers Accuse Tesla of Breaking State Sales Limit" would be more appropriate.
RobStark
Well-Known Member
Tesla Bill Passes House Committee
The revised house Bill 393, which was the result of negotiations between Tesla and the state’s automobile dealers would allow a manufacturer of zero emissions vehicles to sell an unlimited number of cars at up to five locations in the state, at least two of which would have to provide vehicle maintenance.
http://www.peachpundit.com/2015/03/09/tesla-bill-passes-house-committee/
Car dealers flip: they back revised Tesla bill
http://www.ajc.com/news/business/car-dealers-flip-they-back-revised-tesla-bill/nkRjF/
RobStark
Well-Known Member
Georgia House OK’s bill letting Tesla avoid using car dealers
Tesla Motors, unburdened by past opposition from the powerful car dealers lobby, easily won House approval Friday night for a bill letting it continue to avoid independent dealers and sell an unlimited number of its new electric vehicles directly to Georgia consumers.
The measure, which passed 170-3, now goes before the State Senate.
If the legislation wins passage there and sign-off from the governor, California-based Tesla would be the first and only car maker in recent Georgia history to be allowed to sell freely without going through independent dealers. But the company would be capped at five Georgia locations.
Tesla’s unusual dealer-free business model has sparked legislative fights around the nation, pitting the company against franchise car dealers protected by state laws giving them exclusive rights to sell new cars. Tesla only sells its highly rated electric vehicles online or through its own stores, three of which are in metro Atlanta.
http://www.ajc.com/news/business/georgia-house-oks-bill-letting-tesla-avoid-using-c/nkWg4/
Georgia HB 393 was passed by the GA Senate today! It was previously passed by the House, so it is off to the Governor for signature. If not vetoed by the Governor, it will allow Tesla to sell an unlimited number of cars directly to consumers. Tesla will be limited to no more than 5 stores that can sell cars in the State.
http://www.legis.ga.gov/legislation/en-US/Display/20152016/HB/393
Sam
http://www.legis.ga.gov/legislation/en-US/Display/20152016/HB/393
Sam
Senate approved. Now on to the Governor!
General Assembly OKs Tesla bill - Atlanta Business Chronicle
General Assembly OKs Tesla bill - Atlanta Business Chronicle
Next up-- Texas!
Texans, it you haven't done so already please go to Support Tesla in Texas and use the "tell your legislator" or "take action" link to send a message to your legislators asking them to support HB 1653/SB 639 which would allow Tesla to sell directly to consumers. The bills would allow an auto manufacturer who has not used franchised dealers to open up to 12 stores in the state. Forward the link to your friends and ask them to send messages of support.
Texans, it you haven't done so already please go to Support Tesla in Texas and use the "tell your legislator" or "take action" link to send a message to your legislators asking them to support HB 1653/SB 639 which would allow Tesla to sell directly to consumers. The bills would allow an auto manufacturer who has not used franchised dealers to open up to 12 stores in the state. Forward the link to your friends and ask them to send messages of support.
Trev Page
Member
Hooray!
Connecticut last week and now Georgia. This is setting a precedent for other other hold out states.
Connecticut hasn't passed yet, it just moved out of committee. A positive step but still a long way to go.
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