Tesla Banning – It’s all about Service

tesla-store-new-jersey-banNew Jersey became the third state to ban sales of Tesla cars because they refuse to be part of the franchise system. Texas and Arizona have already instituted the ban based on the idea that in those states you are required to be a franchise in order to sell cars.

I wrote about this issue back in August and spoke about how this new model of selling cars hurts those who pay franchising fees and those who collect those fees. In short, politicians in many states have set up a system wherein anyone who wants to sell cars must pay a bribe to the state in order to have a license. Those who cannot afford the bribe or do not want to pay are not allowed to sell product to consumers.

There’s another aspect to the story. Car dealers make most of their money through service calls and financing, not sales. When people take their car to the dealer for routine maintenance and repair they pay a premium for such service. 

If the Tesla method of selling cars catches on; this lucrative form of revenue decreases dramatically. The loan portion of the industry is also severely damaged.

What upsets me most about all the caterwauling from the auto industry and franchise owners in various states is their insistence that they are banning Tesla sales to save the consumers. This is the sort of “it’s for you own good” Liberalism that drives Libertarians like me to drink.

What it really is, is another example of Crony Capitalism where those with money run to legislators and beg to be saved from a new competitor.

It could be that the franchise system is better for consumers. I doubt it, but it could be true. One thing that I know for certain is that it’s not the government’s business to decide what’s the best sales model for a car manufacturer.

We here in the United States don’t have the best cars, the best internet speeds, or the best technology because Crony Capitalism is destroying real capitalism. Are you happy with your internet provider? Your television provider? How many choices do you have? Choices are good for consumers and, in the long run, good for businesses.

In a capitalistic system a business must provide a good product at a price people want if they want to survive an assault from a vigorous new competitor.

In the United States the owner of a business simply heads to the statehouse and bribes the politicians into passing laws to destroy their competitors.

I have a word of warning for all the franchise owners who are trying to legislate Tesla out of business.

Elon Musk has a lot of money and bribery goes both ways. Maybe you should think about changing your business model. 

Tom Liberman
Sword and Sorcery fantasy with a Libertarian Ideology
Current Release: The Spear of the Hunt
Next Release: The Broken Throne

Tesla Banning – It's all about Service

tesla-store-new-jersey-banNew Jersey became the third state to ban sales of Tesla cars because they refuse to be part of the franchise system. Texas and Arizona have already instituted the ban based on the idea that in those states you are required to be a franchise in order to sell cars.

I wrote about this issue back in August and spoke about how this new model of selling cars hurts those who pay franchising fees and those who collect those fees. In short, politicians in many states have set up a system wherein anyone who wants to sell cars must pay a bribe to the state in order to have a license. Those who cannot afford the bribe or do not want to pay are not allowed to sell product to consumers.

There’s another aspect to the story. Car dealers make most of their money through service calls and financing, not sales. When people take their car to the dealer for routine maintenance and repair they pay a premium for such service. 

If the Tesla method of selling cars catches on; this lucrative form of revenue decreases dramatically. The loan portion of the industry is also severely damaged.

What upsets me most about all the caterwauling from the auto industry and franchise owners in various states is their insistence that they are banning Tesla sales to save the consumers. This is the sort of “it’s for you own good” Liberalism that drives Libertarians like me to drink.

What it really is, is another example of Crony Capitalism where those with money run to legislators and beg to be saved from a new competitor.

It could be that the franchise system is better for consumers. I doubt it, but it could be true. One thing that I know for certain is that it’s not the government’s business to decide what’s the best sales model for a car manufacturer.

We here in the United States don’t have the best cars, the best internet speeds, or the best technology because Crony Capitalism is destroying real capitalism. Are you happy with your internet provider? Your television provider? How many choices do you have? Choices are good for consumers and, in the long run, good for businesses.

In a capitalistic system a business must provide a good product at a price people want if they want to survive an assault from a vigorous new competitor.

In the United States the owner of a business simply heads to the statehouse and bribes the politicians into passing laws to destroy their competitors.

I have a word of warning for all the franchise owners who are trying to legislate Tesla out of business.

Elon Musk has a lot of money and bribery goes both ways. Maybe you should think about changing your business model. 

Tom Liberman
Sword and Sorcery fantasy with a Libertarian Ideology
Current Release: The Spear of the Hunt
Next Release: The Broken Throne

Despicable banks, Greedy Business, Palin, and Tesla Crash

I’ve been working on my next novel quite a bit and haven’t done a Stupid or Misleading Headline in over a week so I thought I’d just do a quick perusal of the hot news stories to see if I could find anything worthy.

Yep.

Here’s a group of four to excite your fancy if you’re a Republican, Democrat, conspiracy theorist, or just about anything else.

I’m not going to get into a deep analysis of any of the four but they are all special in their own way.

Despicable Bank Bank of America is up to shenanigans with the way they process debit statements. It is a pretty obvious and ethically questionable move to try to get more defaults but hardly the most despicable thing of all time.
Greedy Businesses First off, the economy doesn’t suck. It’s not humming along at an early to mid 90’s rate but all economic indicators show mild growth and decreasing unemployment. Secondly the country is changing. Enterprise business is now dominant where once small businesses had the greatest influence. Greed plays a role but it’s hardly the only factor in the game.
Sarah Palin I suppose it is news when my fellow University of Idaho alumnus says something that turns out to be prophetic instead of nonsense. Still, does this make her a foreign policy expert? Hardly.
Tesla Crash Elon Musk is a bit of a P. T. Barnum type and his wild claims get on my nerves but just because he makes outlandish statements doesn’t mean his entire business is going to come crashing down.

Anyway, that’s it. A quick recap of headlines designed to seduce you into making that all important click. Don’t do it!

Tom Liberman
Sword and Sorcery fantasy with a Libertarian Ideology
Current Release: The Spear of the Hunt
Next Release: The Broken Throne