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Tesla Motors Charges a Worldwide Economy

Tesla Motors is selling electric vehicles, keeping its shares topside, helping charge an economy around the world, and looking for a state to break ground on for a factory. An agreement with Panasonic to invest in production equipment for lithium-ion battery cells for the new factory is fueling speculation as to where the factory will finally have a home. Things are looking up for the electric car manufacturing company. Southwestern states are pushing and shoving each other, clamoring for the first place in line as the state of choice to build the factory. Rumors are rife with Reno, Nevada, as being the site for the new plant. Concrete has already been poured there, but Elon Musk, co-owner of the company, announced other sites are still being considered.

The company plans to pour a construction plant pad in one other state, as it prefers to compare two sites, before making a final choice. One of the factors in the choice being made now, is securing agreements with whatever state is selected. The current situation in New Jersey is a case in point of dealership and franchise laws, confusing the issue. Tesla Motors does not have dealerships, as it sells directly to consumers from their own showrooms.

This may work for some kinds of products, however, cars are a different creature than most other commodities. Selling cars through a manufacturers showroom is an illegal distribution system, according the current laws of most states. Tesla Motors may not be able to sell many vehicles through a dealership, as there is no incentive for dealers to sell electric cars. It is a conflict of interest. A dealership with gasoline cars has no incentive to sell a vehicle that uses electric power, if the car is not manufactured by the same company. Charging an electric vehicle does not fuel a worldwide automobile economy based on gasoline.


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