Disruptive technologies are, well, disruptive. We’ve seen this throughout history with the written word followed by the printing press and then the internet. Jeff Jarvis even wrote a long essay, turned Kindle single, about the disruptive nature of the printing press. Switch to automobiles and fast forward a few hundred years from Guttenberg to Elon Musk and we are seeing similar reactions.
Tesla Motors uses a different way to sell their cars. Instead of dealerships, it’s more like going to the Apple Store. And this is what the Georgia Automobile Dealers Association is taking issue with. From Auto News
In its petition, the Georgia dealers association is asking state regulators to prohibit Tesla from selling its vehicles, revoke the company’s existing dealer license and deny any attempt by Tesla to renew or reapply for a license.
The association suggests that Tesla improperly obtained the license by claiming that it qualified for a statutory exception allowing direct sales for makers of custom vehicles selling less than 150 a year.
Tesla does not qualify for the exception, the association argues, because it does not manufacture to custom design specifications and it is already selling more than 150 vehicles in Georgia a year.
Georgia is one of the fastest growing and largest markets for electric vehicles and Tesla has shaken the status quo by using direct sales.
Should Georgia law change and this really is just a buggy-whip argument or does the Auto Dealer’s Association have a point?