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Seriously? DeSantis just signed a bill banning direct-to-consumer auto sales, which affects all the major car manufacturers, except curiously enough, or should I say quite obviously, Tesla. Which just so happens to be on the heels of Elon’s million dollar donation to DeSantis, and DeSantis’ announcement of presidential aspirations on Twitter with Musk sitting beside him. Can you say ‘CORRUPT’? I’m having t-shirts made that say MUCK FUSK, and the orders are pouring in faster than I can get them made. Hey, Elon. Why don’t you try making a car that actually charges the battery in cold weather, doesn’t burst into flames or have the steering wheel fall off, instead of trying to colonize Mars or embed chips into peoples brains. SMH.
The problem is that they write articles like this leaving out key details and specifically only mentioning Tesla to bait people into getting all excited about a false conclusion.
It's not only Tesla. It's ALL manufacturers who have that model now and in the future. It actually protects them and their DTC models by clarifying parts of the law that were previously vague.
The problem is that they write articles like this leaving out key details and specifically only mentioning Tesla to bait people into getting all excited about a false conclusion.
It's not only Tesla. It's ALL manufacturers who have that model now and in the future. It actually protects them and their DTC models by clarifying parts of the law that were previously vague.
Understood, but please explain why the policy is so selective. So, every automaker currently in business cannot sell DTC, but any automaker who emerges tomorrow gets a free pass? Still has an offensive odor to it. The smell of politics, most likely.
Understood, but please explain why the policy is so selective. So, every automaker currently in business cannot sell DTC, but any automaker who emerges tomorrow gets a free pass? Still has an offensive odor to it. The smell of politics, most likely.
Well, it is politics. Governors, in their role as CEO of the state, have to carrot and stick economic development and encourage full employment. Legacy dealerships are fairly significant to local economies. It's downright pleasant that there's not a lot of bickering here so I'm going to move on from the politics of this.
The DTC model isn't perfect either.
My wife's car is in now for a failing compressor that only occasionally makes noise. The SA has been in the car when it did it and I provided a video. She says the manufacturer will only cover it if they get a video, from a service tech, of it making the noise. They have had it for a week. It's a known problem but the manufacturer refuses to budge until it can be reproduced. The dealership has seen a dozen of them. Porsche is just being difficult. I'm very thankful that the dealership is willing to do whatever it takes to get it covered so my wife doesn't have to drive it until it strands her on the side of the road.
This is also an interesting story that came up today. Once the most valuable automaker in the world, Rivian is really struggling and I'd wonder if the traditional dealership model could have been a better route for them. Who's buying a $90k truck without driving it? Apparently only 950 people per month. Tesla was a unicorn. DTC worked for them at that moment in time when gas was at it's peak and they were the only real EV option. Other DTC start-ups like Fisker, Lucid, Polestar, & Canoo certainly won't have it as easy. They can go ahead and try to sell on their websites here in Florida but it's not really working.
Who's buying a $90k truck without driving it? Apparently only 950 people per month. Tesla was a unicorn. DTC worked for them at that moment in time when gas was at it's peak and they were the only real EV option. Other DTC start-ups like Fisker, Lucid, Polestar, & Canoo certainly won't have it as easy. They can go ahead and try to sell on their websites here in Florida but it's not really working.
I share your appreciation for the lack of bickering here. Thanks to all for keeping it that way.
To me, the issue isn’t whether a good dealer adds value. Good ones do. Bad ones are just oxygen thieves. I agree with you that people are unlikely to make the second largest purchase of their lives (after a home) sight unseen.
The issue is the monopoly. If I want to buy an Apple Watch, I can go to Best Buy. I can log into Amazon. Or I can go to an Apple Store. Want to touch it? Pick an in person option. Want it cheap and delivered to your home? Go on line. Have a problem with it? Go to the Genius Bar.
If the laws allowed, I would encourage Rivian to set up their own delivery and repair locations. You can call them “dealers” if you like. My wife bought her Tesla from one in New Jersey, and yes, we test drove it before she put a deposit down on line.
But give me the freedom to choose. Don’t subject me to the manipulation and dubious value-add of a dealer whose goal is to extract as much money from my pocket in this transaction, without regard to my long term loyalty or satisfaction. As I told my sales rep at JLR Princeton after the manager tried to force me to finance through them at a usurious rate, “pigs get fat, hogs get slaughtered.” They burned any loyalty they might have had over a few hundred bucks worth of interest.
I share your appreciation for the lack of bickering here. Thanks to all for keeping it that way.
To me, the issue isn’t whether a good dealer adds value. Good ones do. Bad ones are just oxygen thieves. I agree with you that people are unlikely to make the second largest purchase of their lives (after a home) sight unseen.
The issue is the monopoly. If I want to buy an Apple Watch, I can go to Best Buy. I can log into Amazon. Or I can go to an Apple Store. Want to touch it? Pick an in person option. Want it cheap and delivered to your home? Go on line. Have a problem with it? Go to the Genius Bar.
If the laws allowed, I would encourage Rivian to set up their own delivery and repair locations. You can call them “dealers” if you like. My wife bought her Tesla from one in New Jersey, and yes, we test drove it before she put a deposit down on line.
But give me the freedom to choose. Don’t subject me to the manipulation and dubious value-add of a dealer whose goal is to extract as much money from my pocket in this transaction, without regard to my long term loyalty or satisfaction. As I told my sales rep at JLR Princeton after the manager tried to force me to finance through them at a usurious rate, “pigs get fat, hogs get slaughtered.” They burned any loyalty they might have had over a few hundred bucks worth of interest.
You would like the freedom to choose, but ironically, that freedom is taken away in Florida by the signing of that bill. Understandably, no one wants to interject politics into the subject, but the facts are glaring. There was even an article in the local media here highlighting this turn of events orchestrated by our state’s CEO. It is not a level playing field when one side is given the other teams playbook, extra points on the board, and having extra players on the field. I don’t see it as bickering, but an expression of differing opinions.
For informational purposes, here is the rest of the story. Getting all the facts is important when taking a stance and forming an opinion.For several years, Elon Musk has supported Florida Gov. Ron DeSantis as a potential presidential candidate. Recently, DeSantis announced his official 2024 presidential election campaign during an appearance with Musk on Twitter Spaces.
Could the link between Musk and DeSantis have led to some electric vehicle companies getting special treatment in the state of Florida?
What Happened: Certain states in the U.S. have placed bans on direct-to-consumer (DTC) sales of automobiles, specifically electric vehicles. This has created headaches for companies such as Tesla Inc, which have gotten creativewith loophole workarounds. The state of Florida passed a law relating to the DTC sale of vehicles, but this time Tesla could be one of the biggest beneficiaries. The law will make it so many traditional automotive manufacturers have to continue using a franchise model of physical dealerships to sell their vehicles. These companies won’t be able to offer their own dealerships to sell directly to consumers, leading to potentially higher prices for consumers.The wording of the new law suggests that companies such as Tesla, Rivian Automotive Inc RIVN and Lucid Group Inc LCID can continue to utilize a DTC business model that doesn’t include franchised locations.
Traditional internal combustion engine (ICE) companies including General Motors Co GM, Ford Motor Co F, Toyota Motors Corp TM and others might be hurt by the new law.
The new law also prevents automakers from forcing certain price points on their franchised dealers. This part of the law could take on Ford, which saw dealerships markup Ford F-150 Lightning vehicles due to demand and costs. InsideEVs said Ford has also planned to adopt “no-haggle pricing” next year.
Originally, the new law was seen as a big blow to companies like Tesla due to its focus on taking on the DTC model. The new carve-out and inclusion of companies with existing plans could be a huge win for Tesla compared to what other states are doing.
States such as New York and New Mexico have banned DTC sales without using the franchise model. Tesla has circumvented these rules by opening several dealerships and service locations on Native American tribal land.
The new law signed by DeSantis comes a month after he signed the Spaceflight Entity Liability Bill into law. Under the terms of SB 1318, spaceflight customers will have to sign a waiver prior to launch to release companies from liability in the event of injury or death.
This law benefits SpaceX, another company owned by Musk.