New Bill in Indiana Would Prevent Tesla From Selling Cars Direct


🐦🦆🦅🐧 🐓🦃🦉🦢🦜
Moderator 📌
TOO Supporting Member
Apr 4, 2016
Pittsburgh PA
Tesla Owner
Model 3
Briggs: Indiana bill that doesn't mention Tesla is all about Tesla
The bill applies to manufacturers that have sold cars in Indiana since July 2015 and have never used a franchised dealership. Such a company would have to stop selling cars directly to consumers either after its sales surpass 1,000 cars per year, or six years after its dealer's license is granted.

Hey, what do you know, there's exactly one company that will soon be out of compliance with this bill. Tesla, which received its dealer license in December 2013, would have to shut down its Indiana sales in 2019.

Red Sage

The Cybernetic Samurai
Dec 3, 2016
Los Angeles CA
Wait... 1,000 cars per year? C'mon, MAN!

Last year, the Tesla Model S (29,156) outsold the Cadillac ATS (21,505). That was with less than 100 locations for Tesla (they were barred from operating in 24 States), and over 900 for Cadillac. Cadillac currently has 29 locations in the Great State of Indiana, while Indiana has one Tesla location.

So that was... 21,505 ATS divided by 900 locations equals 23.89444~ units per store. That is just about 693 ATS total sold in Indiana.

With 29,156 Model S sold in 99 locations nationwide... That is perhaps 295 of them sold in Indiana (if evenly distributed). That's roughly as many Model S as 12.3 Cadillac dealerships would have moved of the ATS -- from just one Tesla location in the State.

Further, while Tesla plans to sell the Model ☰ at ten times the rate of Model S (at least)... That means Tesla would probably hit the 1,000 unit maximum per year in something like three months, 1-1/2 weeks (including Model X).

The relative efficiency of direct sales compared to the franchise system seems to be rather high when you look at it that way.

These types of arbitrary restrictions really get on my nerves. Did Indiana limit the number of computers that Dell could sell via mail order in their State? Howzabout a limit on mail order through Sears, or Fingerhut, or Land's End? No? Did Indiana set a hard limit on the number of Starbucks or Krispy-Kreme locations in the State, so as to 'protect' the interests of the public at large and Winchell's or Dunkin' Donuts? Prolly not.

Fact of the matter is that the Tesla Model ☰ will probably outsell the entire Cadillac product line in 2018. And, even without a dealers license in Indiana, more people in that State will buy a Model ☰ than the ATS anyway. Because you can't stop interstate trade with petty legislation.