By on March 31, 2014

Tesla Model S

Automotive News reports Tesla and Greater New York Automobile Dealers Association reached a compromise agreement over the weekend that would allow the EV automaker to keep their five stores while prevent Tesla or any other auto manufacturer from establishing more direct-sale stores in the state. In the words of Governor Andrew Cuomo:

Today’s agreement reaffirms New York’s long-standing commitment to the dealer franchise system, while making sure New York remains a leader in spurring innovative businesses and encouraging zero emissions vehicle sales.

Meanwhile, Tesla spokeswoman Liz Jarvis-Shean tells Bloomberg the Gigafactory will source supplies of graphite, cobalt et al from within North America, citing cost and environmental issues behind the decision. Currently, the majority of graphite found in the automaker’s battery packs come from synthetic sources in Europe and Japan, with future natural sources expected to come from Canada.

Over in China, where graphite mines and processing plants are being closed over air-quality issues, Tesla’s general manager Kingston Chang resigned his position for personal reasons. His departure, which the automaker declined to expand upon to Bloomberg, comes just as CEO Elon Musk prepares to expand further into the country’s auto market, who predicts sales to be on par with those in the United States as early as next year.

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11 Comments on “Tesla Stays In NY, Loses Key China Exec...”


  • avatar
    Johnny Canada

    “while making sure New York remains a leader in spurring innovative businesses…”

    Elton Musk should have done what Horward Roark did; dynamite the whole thing and walk away.

  • avatar
    dwford

    Gotta admit Cuomo is a savvy politician. Strokes the vested interests AND gets to polish his green cred in one action. I’m no Democrat but that’s skill.

    • 0 avatar
      healthy skeptic

      >> Today’s agreement reaffirms New York’s long-standing commitment to the dealer franchise system…

      Bleh. I’m a Democrat, and his avowed protection of that corrupt franchise system disgusts me.

      But there isn’t really much breakdown along partisan lines in this whole dealership-state-protectionist-laws thing. A lot of Dems and Repubs support it, some oppose it. Yet a vast majority of the public opposes it across the political spectrum. Something about how neither liberals nor conservatives like being forced by law to fork over money to an unwanted, unneeded middleman. Goes to show it’s more a case of soft corruption and entrenched interests than anything else.

    • 0 avatar
      jimbobjoe

      The Ohio legislature passed the same compromise, 3 factory owned dealers for Tesla in Ohio.

      Don’t know who copied whom, but it looks like this will be the compromise in the long run.

  • avatar
    Stumpaster

    Let’s be real, someone got bribed. Christie is already under scrutiny so it didn’t work in NJ.

    • 0 avatar
      darkwing

      Unlikely — not that it matters in the press as long as you have that magic letter “(D)” after your name…

    • 0 avatar

      > Let’s be real, someone got bribed. Christie is already under scrutiny so it didn’t work in NJ.

      dwford’s comment just above is worth pondering again since it obviously didn’t work the first time.

      This is a pretty typical political deal where the parties involved (tesla, dealers) each get what they want.

      The main issue is that public interest is rarely a party to such talks.

  • avatar
    stuki

    ‘Today’s “agreement” reaffirms New York’s long-standing commitment to ensure that absolutely all outcomes, for all parties involved or not, are dictated, to the most minute detail, by us corrupticians. Elon is OK, so we let him play. Remember, the latest fad amongst our funders at Goldman Sachs is electric sex toys for men. And besides, waaaay beyond ridiculously overvalued stock markets are what those who pay me in this state live off of. Makes them look smart for telling people to buy, buy buy when the stocks were merely ridiculously overvalued. And looking smart, and green, is what counts these days, after all. That’s what the Man on TV says.

    So, anyway; fat chance anyone with aspirations of selling a cheaper and better and greener electric car than Elon will ever be able to compete directly with him. If they could, then all those who bought Elon’s overpriced car wouldn’t look smarter than others anymore. Or greener. And they’re the ones who pay me to look after their vanities, after all. So, banned they will be. It’s the law! And everyone must follow the Law! Says the Man on TV.

    Besides, letting just anyone sell cars on an equal footing, without us well meaning corrupticians getting in the middle…. well, how could we then guarantee that the “good” guys win? I mean, that would be like just rolling over and capitulating to those market forces! And every well indoctrinated progressive knows how evil those guys are. Just listen to The Man On TV’

  • avatar
    thelaine

    Good for Elton. He gets to make money and locks out future direct sales competitors.


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