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Legislative Capture Of The Day; Missouri Tries To Ban Teslas's Direct Sales Model

wochit business
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May 11, 2014 AT 12:44 PM
A bill in the legislature may soon bar direct car sales. New language in House Bill 1124 would require Missouri consumers to purchase cars from middlemen franchised dealers. This would affect those interested in buying electric Tesla cars– the automaker’s business model is structured by a direct sale to consumers through their website. It’s this that explains the car dealership laws that Tesla is facing. It’s much the same story in the beer distribution business and many others. And, of course, it’s a pernicious development in the economic life of the nation.