- A senator from New York State wishes to repeal Tesla’s licenses to operate stores in the state.
- Licenses only exist because heads of state have chosen to protect their friends in competition from competition, a sign of the maintenance of money on politics.
- While Tesla has five stores in the state, companies like Lucid, Rivian and Scout are always prohibited from setting up sales centers anywhere in New York.
New York wants to be an electrification leader. With a greater economy than that of Canada and a relatively rich and relatively progressive population, one might think that the EV transition would be easy. There is certainly a lot of money behind. But there is only one problem, which is at the center of so many problems in this country: money in politics.
Anyone who believes that business money cannot cancel public opinion has never faced lobbyists from car dealerships. Long before Tesla was perceived by many as the number one public enemy, long before the Ministry of Effectiveness of the Government, there was the battle of David against Goliath at the center of the history of Tesla. Most states had laws explicitly designed by car dealers to avoid competition from manufacturers, and they do not disappear without fighting. Some have even written new laws to prevent Tesla from going out.
More than a decade after the start of the battle, it is still raging today. And this is not something in the red state. The next battlefield may be New York.
New York State senator Patricia Fahy has just pulled the first time, arguing in an interview with the New York Times that the state should revoke Tesla’s ability to manage business stores in the state.
Some history: New York was one of the states that had no law prohibiting direct sales to consumers, but who managed one while Tesla began to threaten the Cabal automotive concessionaire in the State Empire. Despite consumers who largely prefer the transparency of direct brands prices to consumers, although it is a viable competitive model for the franchise model and despite the fact that Tesla has no deductible agreement, the State has fully prohibited practice.
To be clear: there is no plausible remote reason for which companies that sell directly to consumers are dangerous, bad or anti -competitive. This is why you can buy your phone in an Apple Store, or in Best Buy. It’s good.
The law has dug an exception. Tesla already had five stores open in the state, so he would be allowed to keep them. This means that Tesla went from a tiny course to the most precious car manufacturer in the world, it had to serve the whole economy of two billion dollars in New York State with only five windows. This restriction is not only bad for Tesla, it is even worse for the managers like Rivian and Lucid, who could not open any store in New York. This is the direct result of the New York anti-competitive anti-competitive protection law, invited and protected by its powerful network of powerful car dealers.
The result is that Tesla has both a direct sales monopoly and a possibility of growth. Incredibly, Senator Fahy – A Democrat – tries to blame Tesla for this result. After the dismantling of federal institutions by CEO Elon Musk, she pushes to get the business out of the state.
Mr. Musk, she said to New York TimesDone “part of an administration that kills all subsidies for electric vehicle infrastructure, killing wind energy, killing everything that could approach climate change. Why should we give them a monopoly? ”
It is so close to obtaining it, but somehow avoids the greatest sin: why does the Devil New York distribute artificial monopolies to anything? Although it offers to give Tesla’s five licenses to rivals like Lucid, Rivian and Scout Motors, this idea pursues the same broken practice to allow the state to choose the winners and the losers. The concessionaires give us jobs and money, so they earn. Tesla is the enemy, so they lose. Rivian, Lucid and Scout have not done anything so far, so they get the remains, but with the conscience that New York can revoke their special license whenever their CEO pisses a senator.
It is a rotten and dirty solution to a dirty and rotten problem. New York again chooses a fight with Tesla, and it is the consumers who always end up losing.
Contact the author: mack.hogan@insideevs.com.
