May 8 Missouri legislators are considering
banning car makers selling direct to the public, in another
challenge to Tesla Motors Inc's push to bypass car
A ban would make Missouri the fourth state after Texas,
Arizona and New Jersey to stop Tesla selling its electric sports
cars directly to drivers.
Missouri auto dealers have proposed new language in an
existing bill that would force consumers to buy new vehicles
only through franchised dealers, Tesla wrote on its blog. (r.reuters.com/far29v)
"Trouble in Missouri. Auto dealers trying to sneak in a
monopoly creation bill today," Tesla Chief Executive Elon Musk
tweeted late on Thursday.
The bill with the new language, passed by the Senate on
Wednesday, will go back to the House for a final vote," the blog
Musk has long argued that car dealers are a bad fit for
11-year-old Tesla because they make more money from selling
traditional cars than selling the company's Model S.
Dealers say the franchise system, in which automakers rely
on a network of independent dealers to sell cars, offers an
extra layer of accountability for consumers. They argue that
competition between dealers also lowers car prices.
(Reporting by Sweta Singh; Editing by Joyjeet Das)