Tesla Motors Inc (TSLA): We Rule 62% Of EV Market In Connecticut

Tesla stockBlomst / Pixabay

Tesla Motors  has introduced a new initiative to spread awareness on how direct sales freedom will aid in achieving 2020 emission goals. The electric car giant started a new initiative to help its cause after back-to-back setbacks to gain a direct sales license in Connecticut. The automaker hopes this initiative will increase its domestic sales.

Tesla could help meet emission targets

Tesla Motors Inc (NASDAQ:TSLA) is now stressing the benefits of its zero emission vehicles (ZEVs), which are bought mostly by wealthy customers in Fairfield County and have a retail price starting at $66,000. The electric car maker claims that its fleet of EVs, including the Model X, Model S and Roadster, makes up 62% of the all-electric cars registered in the state, reported the Hartford Courant late Wednesday. In addition, carbon emissions would be alleviated if more of its cars are brought to the roads via direct sales.

Tesla cars account for around 24% of all types of green energy vehicles in the region, including hybrids and EVs, said Connecticut energy officials. By May 5, there were 3,556 green energy vehicles in the state, according to data from the Connecticut Department of Motor Vehicles (DMV). Of those, 1,386 vehicles were pure electric, including 868 Tesla EVs. Overall, there were 3.1 million vehicles registered overall.

Will Nicholas, Tesla’s Northeast Regional Sales Manager, said the most important component of the automaker’s missions is to combat climate change. If the state does not push for more electric cars on the road, it will face many obstacles to reach its 2020 emission target, Nicholas noted.

Dealers opposing Tesla’s sales model

Citing an environmental group’s report, Tesla officials said that during 2013 and 2014, the level of CO2 increased by over 4% in Connecticut after years of gradual declines. Further, they claim that allowing Tesla to sell cars directly would assist in achieving clean air targets and lowering the state’s carbon footprint.

Because of traditional automakers like GM and the overpowering lobbying of the Connecticut Automotive Retailers Association (CARA), the General Assembly of Senate killed the Tesla bill for the second time earlier this year. The electric car maker offered a distribution center and five stores creating 275 jobs in the state to change regulators’ decision last month, but it was too late for that.

It is unfair to give any exemption to the automaker or other electric car makers in the state, believes the industry. Tesla already benefits from hefty federal tax credits on the purchase of a new EV, said CARA President Jim Fleming.

On Thursday, Tesla shares closed up 0.11% at $217.93.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

1 Comment on "Tesla Motors Inc (TSLA): We Rule 62% Of EV Market In Connecticut"

  1. Tesla is an environmental disaster, especially in Connecticut.

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