Tesla Motors Inc (NASDAQ:TSLA)’s CEO tried to distance his company from the franchised dealers during the business in Michigan but it seems that the monopoly of the government backed dealers is stronger than the innovation and imbibing features of electric cars. Tesla Motors Inc (NASDAQ:TSLA)’s nightmare has been written in a bill and it is awaiting the final signatures from Michigan’s governor. Tesla has lodged a protest over this development. In a program on Bloomberg, Diarmuid O’Connell, vice president of business development at Tesla Motors Inc (NASDAQ:TSLA) said that the situation is pretty well under control. The media, politicians and citizens are on the side of Tesla Motors Inc (NASDAQ:TSLA). The governor can veto this bill and he is also not happy about how the dealers have put them in this scene just before the election.
O’Connell said that Tesla Motors Inc (NASDAQ:TSLA)’s latest innovation is being hurdled by this latest bill. He denied commenting on the question about if governor really wants to sign this bill or not. O’Connell said that what he can say with certainty is that this issue is controversial. O’Connell commented on a statement issued form cars dealers union which states that Tesla Motors Inc (NASDAQ:TSLA) must not be allowed to work in its own capacity as this will give all the rights of sales to the company, resulting in complete loss of bargaining power of the customers. O’Connell said that this is nothing but an effort to sustain the monopoly in the state from the side of dealers.
He said that Tesla Motors Inc (NASDAQ:TSLA) wants direct sales to promote new technology. He rejected any statistics that show Tesla Motors Inc (NASDAQ:TSLA) ’s losing war in different states regarding direct sales and claimed that the company is in good terms with legislators and regulators and slowly making its way to introduce a new franchise free culture in car sales.
Ken Griffin’s Citadel Investment Group hold around 46.5 million Tesla Motors Inc (NASDAQ:TSLA) shares.