Tesla retains permission to sell cars directly in Columbus

Tesla retains permission to sell cars directly in Columbus

Tesla, one of the leading automakers in the country, will continue to retain its permission to sell its cars directly in Ohio.

New Jersey, last week, began imposing a ban on the automaker to sell cars directly within the state and has asked for the sales to be made only through dealerships. The sales model of Tesla has run into rough weather in many other states as well. Some of the other states that wanted to impose a ban on the direct sales by Tesla were Virginia, Arizona and Ohio.

Those in support of this ban opine that it is a move in favour of customers who can enjoy increased protection. However, the point of contention is whether they are in support of the highly lucrative car dealerships or in favour of consumers.

Intermediaries such as the car dealers increase the selling prices of a car, thus making it more expensive for the customers. However, they also form an important part of the supply chain and enhance value to consumers, though they may possess a few drawbacks.

The current issue being debated in many states is if the Tesla's sales model actually provides customers a new option to purchase cars or limits their ability to shop for other vehicles available in the market. The Vice President of Tesla Motors, Diarmuid O'Connell said that the company has come up with a new technology and is also finding a new way of packaging it and delivering it to customers.

In December 2013, Tesla setup its first outlet in Easton, once they obtained the license from the Kasich administration. However, this was not well received by those in the car industry. A representative of the Ohio Automobile Dealers Association, Joe Cannon, said that the sales model of Tesla creates an unfairly competitive environment for close to 800 car dealerships in the state and impacts thousands of employees in this sector.