Tesla Motors Inc Gets Store Approval In Pennsylvania

Tesla Motors Inc Gets Store Approval In Pennsylvania
<a href="https://pixabay.com/users/Blomst/">Blomst</a> / Pixabay

Tesla Motors (NASDAQ:TSLA) got approval of Pennsylvania authorities to expand its retail operations there. This comes as a relief to the EV manufacturer, which is struggling to get approvals for its direct sales models in some states of the United States.

Governor consent due

Pennsylvania state house passed legislation that was already approved by the Senate last week following which Tesla will be able to open more retail stores in Pennsylvania and add more service centers, according to an e-mailed statement from the Bloomberg. The legislation was passed with 197-2 in the House and allows Tesla to open five stores in the state. However, for becoming a law, it still requires to be signed by Governor Tom Corbett.

ADW Capital’s 2020 letter: Long CDON, the future Amazon of the Nordics

Investing Greenhaven Road CapitalADW Capital Partners was up 119.2% for 2020, compared to a 13.77% gain for the S&P 500, an 11.17% increase for the Russell 2000, and an 8.62% return for the Russell 2000 Value Index. The fund reports an annualized return of 24.63% since its inception in 2005. Q4 2020 hedge fund letters, conferences and more Read More

Diarmuid O’Connell, Tesla’s vice president for business development, said in a statement, “We hope the process in Pennsylvania serves as an example for how productive cooperation can lead to a win for all parties involved, dealers and legislators included.” The executive added that the approval in Pennsylvania was backed by an industry group, the Pennsylvania Automotive Association.

Tesla, now, operates a Pennsylvania store in King of Prussia and service centers in Devon and Norristown, and is planning to open a store in Devon soon as per its website.

Tesla sales model gaining turf

Ben Kallo, an equity analyst with Robert W. Baird & Co. assigned Outperform rating to the stock. Analyst said that may be state legislatures are feeling pressurized to change state laws. Kallo said that a pressure is exerted by “constituents of all political parties” rather than special interest groups.

Karl Brauer, a senior analyst with Kelley Blue Book said that Tesla’s ability to win approval in U.S. states guarded by strict franchise dealer rules, shows that Elon Musk is breaking the traditional auto sales model. Analyst added that Tesla is a trending company in the auto business.

Elon Musk has succeeded in getting approval in yet another state for its controversial direct selling Model. Last month, the New Jersey Assembly approved a bill favoring direct sales of zero-emission autos, and New York also initiated a similar law. This year, Tesla successfully got exempted from the Ohio legislation banning direct auto sales and avoided a similar ban in Missouri.

No posts to display