FTC Comes To Aid Of Tesla In Dealership Drama

And the saga continues. Three high-ranking officials from the Federal Trade Commission (FTC) have openly expressed support for Tesla Motors to directly sell vehicles to customers without an independent dealer network. After some careful deliberation, the FTC members even went as far as to say the rules were “bad policy for many reasons.”

In an official statement, the committee members wrote, “[The legal] protections expanded until in many states they included outright bans on the sale of new cars by anyone other than a dealer—specifically, an auto manufacturer. Instead of ‘protecting,’ these state laws became ‘protectionist,’ perpetuating one way of selling cars—the independent car dealer.”

One of the main supporters from the FTC, Andy Gavil, told AutoblogGreen that the members’ intention was to simply bring attention to the controversial issue. Gavil even went as far as to cite examples from taxi start-ups such as Uber and Lyft, both of which have endured a similar experience against tax commissions.

As you could imagine, CEO Elon Musk is elated with such news and is hoping such publicity will enable his company to win the fight for direct sales to the consumers. For all furthering developments in the ongoing Tesla vs States issue, stay tuned to Motrolix.

Car-enthusiast since birth. British at Heart. Just enjoying the ride!

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