Over the past few years, Tesla has faced legal battles with Michigan to sell vehicles inside the state. In this video, I go over how legislators are trying to crush Tesla.
My Second Channel:
https://www.youtube.com/channel/UCPkDot_lMk7HB_c68HubbUg
Twitter: https://twitter.com/casgains
Instagram: https://www.instagram.com/casgainsacademy/
Please consider becoming a channel member by clicking the "join" button or becoming a Patreon at https://patreon.com/casgains
Soundtracks provided by Nanobyte, Emphermal, Defyant, and Lakey Inspired
Copyright Disclaimer Under Section 107 of the Copyright Act 1976: All rights belong to their respective owners
My Second Channel:
https://www.youtube.com/channel/UCPkDot_lMk7HB_c68HubbUg
Twitter: https://twitter.com/casgains
Instagram: https://www.instagram.com/casgainsacademy/
Please consider becoming a channel member by clicking the "join" button or becoming a Patreon at https://patreon.com/casgains
Soundtracks provided by Nanobyte, Emphermal, Defyant, and Lakey Inspired
Copyright Disclaimer Under Section 107 of the Copyright Act 1976: All rights belong to their respective owners
Over the past few decades, outdated franchise loss had prevented car manufacturers from selling directly to the consumer, because, if automakers created their own dealerships and sold directly to the consumer, this would drive existing dealerships out of the business, because tesla has no dealerships. These laws should not apply to tesla. Nevertheless, existing dealerships have convinced legislators to ban tesla from selling their vehicles. There are several states where purchasing a tesla is not possible and michigan has stood out as one of the major states to ban tesla from selling vehicles.
Michigan, which is home to the u.s. Auto industry has a strong incentive to ban tesla because of this michigan and tesla have been facing legal battles with each other for years in january, tesla was finally granted access to selling its vehicles. Yet most recently, this access has been removed in this video. I'm going to go over how michigan legislators are crushing tesla welcome to cas games academy if you're new to the channel.
Please consider subscribing for more content like this and let's get right into it. Car dealerships are extremely inefficient. Each dealership has to pay for their own advertising website and customer management system, not only that, but dealerships have to compete with each other when it comes to these operating expenses, because tesla removes this entire process, dealerships are looking to potentially have their entire business model, be Crushed it's important to understand how high the stakes are here. In 2020, the market size for dealerships selling new cars is estimated to be at 790.4 billion dollars and that's during the pandemic.
The stakes are extremely high and dealerships know this dealership, associations and automakers have spent and are continuing to send billions of dollars to lobbyists, whose main purpose is to convince legislators that tesla should not be able to sell their vehicles directly to the consumer before we get Into how michigan legislators are attempting to shut down tesla right now, we need to understand how the legal battle got here back in 2014, michigan's laws were changed so that automakers could not directly sell their cars to the consumers. The law was changed in order to quote unquote, clarify the position of the state concerning automakers selling vehicles directly to consumers. Just think about that. For a second imagine if amazon was restricted from selling products, because walmart was selling those same products, such laws inherently go against.
The ideals of a free market in 2016 tesla continued with its plans to open a service center in detroit and filed an application for a dealership license after tesla was officially rejected from opening a service center. The company filed a lawsuit against michigan suing michigan governor rick snyder, michigan's attorney general bill schwett and secretary of state and chief motor vehicle administrator ruth johnson over their ban on direct sales for selling cars. Tesla claims that michigan's amendment was actually the anti-tesla amendment and violated the due process: equal protection and commerce clauses of the constitution. During this time, other states like texas, had bans on selling tesla vehicles, however michigan in particular even prohibited tesla from starting a service in maintenance center in the states as crazy as it may seem, general motors, which is paying lobbyists to convince legislators to go against tesla, Was using the fact that tesla owners could not get service in michigan as a selling point for the boat ev that right? There is corporate corruption on a very high level. Gm ceo, mary barra paid for lobbyists in order to change the law against tesla and then use that law as a selling point for the chevy bolt over the next few years. Tesla and michigan faced a long legal process where tesla attempted to show that legislators were influenced by lobbyists paid by car dealers and automakers. On january 23, 2020 tesla finally reached a settlement in michigan to allow for the direct sales and service of tesla vehicles. This settlement involved using legal loopholes to allow tesla to sell and service vehicles, for example, while tesla is not able to directly service and maintain tesla vehicles.
Tesla can create a subsidiary named tesla service subsidiary, where the company will be able to service tesla vehicles when it comes to sales, tesla would be able to sell vehicles only by transferring a legal title from a different state into michigan. What this means is that when you purchase a tesla vehicle that tesla vehicle will be registered from a different state and will be delivered to michigan by transferring that registration through this title, transferring loophole tesla would be able to finally open stores inside michigan, because tesla technically Wouldn't be selling his vehicles in michigan instead, tesla would be selling vehicles in a different state and delivering those vehicles into michigan. It's important to understand that this law was not created through actual laws, but loopholes tesla still couldn't obtain an official dealer license, but still would be able to sell and service tesla vehicles. Terry burns, the executive vice president of the michigan auto dealer association even stated himself that the settlement was based on a clear set of specific facts for a specific time.
At the time it seems like tesla finally got its victory, which is simply not true, while tesla's settlement with michigan in january, officially allowed tesla to sell vehicles in michigan. The settlement was not over yet most recently. On december, 2nd 2020 lawmakers passed a 6539 bill that counteracted tesla's january settlement. The bill, which was sponsored by congressman jason shepard, would directly deny tesla's access to the loophole.
Shepard's bill hasn't gone through yet because the bill still needs to pass the state senate and be signed by the governor. But if the bill does end up going through, it would ban tesla's right to sell vehicles in michigan and force tesla to shut down its service center that had opened earlier in 2020. Following the january agreement. There's no reason for tesla to not be able to sell vehicles directly to consumers. The law banning direct sales was to prevent traditional automakers like gm, from opening their own dealerships to compete against the existing ones. Tesla has no existing dealerships selling their vehicles, so the law should not go against tesla. Nevertheless, the traditional automakers and car dealerships are corrupting the legal system by bribing lobbyists to convince legislators to go against ev manufacturers like tesla, rivian and lucid. If you are a michigan resident, i would consider voting out legislators who are supporting the bill against tesla.
What would you suggest to tesla in this situation? If you enjoyed this video, please hit the like button and subscribe. If you haven't already and i'll see you in the next one.
Excellent video! I live in Michigan and am infuriated by this corruption and nonsense. Are the legislators involved mostly Democrats, Republicans or is it a bi-partisan issue?
No need to fight them. When ice companies go bankrupt dealerships will go bankrupt too
Can you make a video on tesla vs right to repair
Those companies who sabotage the principle of the free market shall shame on themselves. Why does GM not invest more of their money into new technologies but just lobbyists to sabotage potential competitors??
They can throw those free money to their suppliers for product research and development.
Michigan does not need mandated dealership law because there are still dealers from large car companies, and we can get their services with convenience. I don’t own Tesla because of higher price tag and difficulty in service availability although they have a service center.
I am so disappointed how those legacy companies playing dirty. (They are playing dirty to younger employees like that inside the company.)
I am just regretting that I don’t have a voting right.
Teslas next factory should be in Michigan. Buyout Detroit RENCEN when they go bankrupt and slap a Tesla T on the building.
Michigan is such a shit state. I moved here to help open up a cannabis grow and its been nothing but legal troubles. City of Warren turned licensing into a lottery. Like 30 applied and 7 won. We were one of the winners. 7 winners invested millions into building and the losers sued. So they pulled all of our licensing now warren is about to go bankrupt if they continue with this. The government is dirty here, detroit sucks, the only thing "pure" about Michigan is the UP. Countries dirtiest water is in the middle of the "pure" state.
US POST OFFICE TRIED TO BAN EMAIL! BACK IN THE DAY!
MICHIGAN WLL NOT "CRUSH" TESLA! TESLA WILL "CRUSH" MICHIGAN! MICHIGAN WILL LOSE OUT! MICHIGAN TRIED TO BAN THE AUTOMOBILE! AGUING IT WOULD PUT THE HORSE STABLE OUT OF BUSINESS,… WHICH IT DID! MICHIGAN IS DYING ECONOMICLY! WONDER WHY!?
The moment someone experiences accelerating onto a freeway feeder road during a Tesla test drive, the ICE industry has lost a sale. 😂
people want good cars and to stop bailing GM when they go belly up
Nio has full support from Chinese Government, Our Government should be doing the same with Tesla.
I know I will getting A Tesla. I could get one now but I don't car payment and and extra interest charge that comes with it to I prefer to pay straight up cash. Plus I am waiting on the refresh that coming soon.
Although they all have overcome a great many years of profound self-sacrifices, achieved incredible personal breakthrough progress in technology, wealth, power, and conventional fame to this date.
However, Mr. Jeff Bezos, Elon Musk, many other great men, women, and the whole world continue neglecting and unable to identify some of the greatest, most meaningful, and most needed projects to truly rescue and heal the many desperately illnesses, wounded bodies, souls, and spirits of the people throughout the world, not in space or Mars. * What is it and when?
Very best wishes always, GS.altc, Paideia Academy & Society
It’s so ironic. Non-Tesla owners have no idea. Teslas are better cars than ICE cars, as any Tesla owner will tell you. Common comment by Tesla owners: “I’ll never buy an ICE car again.” I’ve been a Tesla owner since 2014, and I wouldn’t accept an ICE car if someone gave it to me. Rarely I have had to drive someone else’s ICE car, and I have felt so unsafe whenever I have had to do that.
Now I'm going to buy a tesla in Michigan
Does anyone like dealerships…besides those making money off of dealerships?
This reminds of when Southwest Airlines tried to expand their original market from just Texas to the US. The other airlines threw every legal road block in Southwest's way trying to push them into bankruptcy through massive legal costs. Obviously, Southwest eventually prevailed and now the cost of air travel has come way down. This is why I only fly Southwest.
What would any pioneer expect. Moreover, Elon is in a secret battle with the oil mogul elitists.
Another good reason to buy a Tesla, If Michigan is against it then I'm for it 100%.
Tesla needs to open a plant in Detroit. That will change it.
CORRUPTION is killing the USA. Americans need to do everything they can to end "lobbying" or at least regulate it so it isnt simply the same as corruption anymore.
Corrupt politicians need to be punished with life in prison. May sound harsh but if this is not done then you better get your children to learn Chinese, because we have the same problem in all democracies and China will defeat us.
They crushed the real Tesla many years ago . We are still run by bullies, I got land approved by planners and niebours but local councilors force it stopped and corrupt appeals and corrupt Onbidsman, they said it’s a danger for kids to walk past as it’s 1/2 mile from a school , but 100 houses built opposit school already 8 years ago , 6 yr I lost , head of Bromley council obe lied and Simon thorthrop Carty bourgh , and a mr Owen , who ever u vote for do nothing
So Tesla should bribe politicians for not passing that law and to sell cars in Michigan 🙃
I think the name TESLA is cursed. The person himself went against the giant Edison, now the company so named after him is facing the same behemoth GM.
tell them not to waste their money
Elon Musk is too smart for them
This is nothing, in Nepal they increased import tax on EVs from 10% to 90%. A Hyundai Kona EV costs around 90k Dollars !! Absurd!
When business screw each other, it’s the consumer who pays. Tesla and GM should be allowed to sell cars any way they want. The other side of the $1B coin is automotive repair. Tesla parts should be available to third party service centers. Otherwise Tesla will have a monopoly on repairs. Getting an out of warranty Tesla repaired is a nightmare.
Once Teslas start delivering themselves, it’s game over for everyone else.
GM ARE CORUPT. Hello there is a climate emergency!! Comon Michigan do ur part and allow Tesla to sell there electric cars
Too much corruption and injustice in America it’s not even America anymore
Haha. I thought America was the free'est country in the world and you can't even buy the car you want
Doesn't really matter. Michigan will soon be left with nothing once the OEMs start to go bankrupt in the coming years as they can't compete with Tesla.
It's strange cause tesla got more money to spend on lobbying
If I could sfford one, I would pollute no more.