Tesla Motors Inc (NASDAQ:TSLA) has succeeded in its goal of surpassing of 100,000 signatures today that will allow an official response from the Obama administration on the White House petition concerning legalizing direct sales of cars to consumers for Tesla Motors Inc (NASDAQ:TSLA)


Tesla Motors

Tesla Motors Fan was confident

Yesterday, Tesla Motors Inc (NASDAQ:TSLA) was only about 6,200 signatures away from the 100k mark. The petition has been created by Ken, a fan of Tesla Motors, to rope in the White House in favor of the company’s direct to consumer sales model. Last week, Ken told ValueWalk that his petition will achieve its target of 100,000 signatures just in time.

Tesla’s Sales model envied

Tesla Motors Inc (NASDAQ:TSLA) is barred in many states from selling its vehicles. The regulation requires a business to obtain a “dealership license” to sell its cars to people. However, Tesla works on a different model; it prefers to sell cars directly to consumers.

For example, a customer cannot buy a Model S from the Tesla store in Austin, Texas. To make a purchase, the consumer will have to buy it online, and the car will be shipped (or driven) from California.

Such selling models from Tesla Motors Inc (NASDAQ:TSLA) is unprofitable to local auto dealership groups, therefore, to make things difficult for the electric car maker; these groups are lobbying against Tesla in their states.

Concerns highlighted in petition

Many experts are of the opinion that such outdated regulations are preventing the growth of electric cars.  The same concerns have been included in the petition. A small part of the petition says “States should not be allowed to prevent Tesla Motors from selling cars directly to customers. The state legislators are trying to unfairly protect automobile dealers in their states from competition. Tesla is providing competition, which is good for consumers.”

What now?

The White House’s response to the petition will be interesting to watch as the decision will be largely determined by state legislators, who are supported by local car dealership groups.

If the White House comes in favor of Tesla Motors Inc (NASDAQ:TSLA) it may constitute a new law allowing the sale of electric cars without a dealership license. Such a decision will be no surprise, after all Tesla has definitely proven itself as a business. The electric car company is profitable, shares are rising and the company has also managed to pre- pay the government loan. On the technology side also, Tesla is constantly improving its offering.