Tesla Motors Inc (NASDAQ:TSLA) returned empty hand from White House as the government stated that it can do nothing to help the EV car manufacturer sell cars directly to the consumers. White House Advisor Dan Utech said that Obama administration will keep distance from the decision over the petition that asked the government to avert the state laws making the shoppers to go to auto dealership to buy cars.
White House uses Congress
“We believe in the goal of improving consumer choice for American families, including more vehicles that provide savings at the pump for consumers,” Utech, President Obama’s assistant for energy and climate change, wrote. He added that the government is aware of the fact that any change in the current state laws on direct to consumer auto sales would require an act of Congress.
Utech discussed the steps that administration has walked to enhance the fuel efficiency and give more alternative to customers, but said that Congress will be on sideways in case of Tesla Motors Inc (NASDAQ:TSLA) battle with the States. President’s assistant for energy and climate change stated that the efforts made by the administration reflect its willingness to increase the competition in the market, which is a pre-requisite for taking forward the innovation needed to back ongoing U.S. leadership in vehicle manufacturing and a potential range of new technologies.
Nationwide Auto-dealers are raising hue and cry over Tesla Motors Inc (NASDAQ:TSLA) ‘Direct to Consumer’ model of sales. As a result, many States have banned this sales model and Auto Dealers maintain that the advent of Tesla sales model has overlooked the decade long tradition of selling the vehicles through franchisee, which restricts the manufacturers from emasculating their prices and forcing them out of the market.
Tesla fans irked
However, Tesla supporters are equally vocal, arguing that States should not interfere in Tesla Motors direct sales model. Critics stated in the White House petition that State legislatures are protecting the automobile dealers unethically from the competition. Tesla is providing for competition in the States, which is good for the consumers.
Responding over the development, Tesla Motors Inc (NASDAQ:TSLA) vice president of corporate and business development Diarmuid O’Connell said that rather than replicating the sort of leadership shown by the senior officials at the Federal Trade commission towards supporting consumer freedom of choice, the White House simply put the liability on Congress. The executive said that in the wake of economic and environmental challenges the company was expecting stronger leadership and more action.
