Can Tesla Topple the Car-Dealer Monopoly?

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April 17 (Bloomberg) -- Editor-In-Chief Matt Hardigree and Bloomberg’s Matt Miller and Alan Ohnsman discuss the impact of Tesla’s direct-sales model on car dealerships on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

Normally based out on the west coast but he is here in new york for the auto show.

You met with tesla last night.

By phone.

What did they say to you?

Class they are upset with the way things turned last week.

You talked about new jersey today but there was another issue in arizona where they thought ability go their way in the state legislature that failed on friday.

It was a setback.

A setback because of this giga factory plan.

It might be based in arizona.

That is one of the four states they have identify they're looking at.

There is also texas, which bans direct sales.

Texas and nevada did -- do not.

That perhaps puts a few points in their corner.

In terms of what happens in their new jersey stores, they basically turned into galleries or showrooms.

It is not as if they are shut down.

What happened to their sales?

Is anything going to happen?

Class they have been able to figure out workarounds.

You want to see the car, you go to the gallery.

You can discuss price.

They will go -- they will take you to the website.

I heard they are giving tors.

Essentially, you will order your vehicle and what happened in other states, and taxes would be a good example, you order your vehicle and it may get dropped off at a texas service center and someone might let you know that could be there for pickup and arrives with california ties and it would have to be registered.

Right now, new jersey is a decent state for them.

They did about 500 or so units last year.

It is not nothing, but not their biggest state.

There are workarounds.

Matt, you were talking about how tesla does not have the legal power now.

This whole giga factory is one lever he can poll.

Thousands of jobs and so much money.

Putting the state on a footing toward advanced technology.

Rick perry is not running for reelection.

He said he wanted up to the idea of letting tesla do what it wants.

That is one step.

Legislators were apparently meeting in secret with some text -- tesla folks because they would love to play in san antonio.

The university of nevada was very friendly to it.

Between all the states, i think nevada is the most likely and has the best lyrical set up for tesla right now.

They have a rail line that leans directly to the factory.

There is a huge pole there.

It is also for solar power, the biggest state.

Texas, he do better with wind.

The giga factory plan is huge.

$5 billion and 6000 jobs that will be created.

Elon does so many things.

Is it even possible?

There is more than a little skepticism.

The critical factor is they have got to get a major sell supplier to go in on the plan with them.

Like panasonic.

Class so far, they have not publicly said anything positive.

Yuan has said several times he is full full they will.

They are the primary supplier.

The challenge for tesla is they do not control the supply base.

They have got to have a panasonic -- great to see you here.

Matt miller is staying with me as well.

Up next, we will be back in two minutes.

Meanwhile, tweet me and let me know what you make of elon musk and tesla's dealer disruption.

Stay in the loop.


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