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Posts Tagged ‘Tesla Motors’

Michigan Gov. Rick Snyder signed a law effectively banning Tesla Motors  from selling its cars in the state. After Texas, Arizona, New Jersey and Maryland, Michigan is the fifth state to do so.

I cannot figure out what problem all these laws are trying to solve. I can go into an Apple store and buy an iPad directly from the manufacturer. I can go into my local gallery and buy a painting from the artist. Why can’t I buy a car from the manufacturer, if there’s a store right there?

They are arguing that it is good for consumers by protecting them.

From What? From Tesla?

I see this as protectionist laws. Our lawmakers, obviously “purchased” by the car dealer lobby, are trying to make sure that the middleman get his cut, it’s as simple as that.

If you have to have laws keeping others out of your market, if you have nothing more to offer in your business model that gives consumers some value in the process of “dealing” with you – pun intended, then you truly have a business model that sucks and you’re on your way out.

Check typewriter manufacturers, travel agents, video rental stores, water-bed stores and Kodak.

Fortunately, the free market doesn’t put up with that very long, and it finds a way around that.

Just wait and watch.

 

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