10 Reasons Why Tesla Should Be Set Free From Franchise Laws

1. Tesla Needs To Bypass Inherent Conflicts of Interest

New Jersey residents were invited to go to the King of Prussia, Pa. store – positioned at the "Plaza" half of the double mall, first floor, next to a computer company Tesla happens to admire.

New Jersey residents were invited to go to the King of Prussia, Pa. store – positioned at the “Plaza” half of the double mall, first floor, next to a computer company Tesla happens to admire.

Says Musk:

“The reason that we did not choose to do this is that the auto dealers have a fundamental conflict of interest between promoting gasoline cars, which constitute virtually all of their revenue, and electric cars, which constitute virtually none. Moreover, it is much harder to sell a new technology car from a new company when people are so used to the old. Inevitably, they revert to selling what’s easy and it is game over for the new company.

“Existing franchise dealers have a fundamental conflict of interest between selling gasoline cars, which constitute the vast majority of their business, and selling the new technology of electric cars. It is impossible for them to explain the advantages of going electric without simultaneously undermining their traditional business. This would leave the electric car without a fair opportunity to make its case to an unfamiliar public.”