Apart from tax incentives, Tesla Motors Inc (NASDAQ:TSLA) is getting another major advantage by building its Gigafactory in the state of Nevada. A recent article by Los Angeles Times revealed that the Nevada Franchised Automobile Dealers Association will discontinue with its plan of opposing the Nevada Department of Motor Vehicles’ decision, that will allow Tesla Motors Inc (NASDAQ:TSLA) to sell its vehicles directly to consumers.
Various bodies of vehicle dealers across the U.S. have protested against Tesla Motors Inc (NASDAQ:TSLA)’s model of selling its cars directly to consumers, which is a breakaway from conventional practice, where automobile companies set up a network of third-party dealers across the country to sell their vehicles. Tesla Motors Inc (NASDAQ:TSLA) on its part has remained adamant on selling cars directly to consumers, possibly to reduce costs and offer a better service.
According to the article, the dealers in Nevada had a change of heart regarding Tesla Motors Inc (NASDAQ:TSLA)’s selling model after they thought over the benefits the company’s Gigafactory will provide to the state of Nevada. The article also highlighted the move by Georgia Automobile Dealers Assn. earlier this month, in which it asked the lawmakers in Georgia to stop Tesla Motors Inc (NASDAQ:TSLA) from selling its Model S and upcoming cars at its Atlanta-based outlet.
The article also sublimely pointed it out that the reason behind the change of heart among automotive dealers in Nevada might not actually be the benefits that the Gigafactory will bring to the state, but instead their own personal benefits. According to the people cited by LA Times, Tesla Motors Inc (NASDAQ:TSLA)’s Gigafactory will create a lot of jobs and the people employed in those jobs will require vehicles, therefore the dealers don’t expect most of those employees to buy electric cars, but rather gasoline cars from their dealerships.
As of June 30, 2014, Daniel Benton‘s Andor Capital Management 1.25 million shares of Tesla Motors Inc (NASDAQ:TSLA).
Disclosure: None
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