Tesla Motors Inc is currently the world’s leading electric vehicle brand. The EV maker has been welcomed in a number of western and developed nations. Many countries even offer incentives to their citizens in order to encourage the purchase of the eco-friendly cars. However, Tesla Motors still comes across a bit of resistance is a number of regions. The EV giant is currently working on selling its vehicles in the unyielding U.S. state of Michigan.
Tesla Fights Against Direct Sales Ban
Detroit News reports that Tesla Motors Inc is keeping up its fight against the ban on direct car sales in Michigan. The company hopes to overturn the strict regulations and convince state authorities to reconsider the ban. The EV maker has even offered free test drives to state officials in hopes of swaying them in its favor.
October 2014 saw Gov. Rick Snyder sign the law that made direct vehicle sales illegal in Michigan. The ruling settled in with a great majority support from state officials. It renders Tesla unable to even promote its car by having showrooms in the state. Further, Tesla Motors cannot service its cars in Michigan either. The law has gotten support from a number of competitors including American vehicle giant General Motors. The ban means buyers have to go beyond state lines and other countries in order to purchase a Tesla EV.
Reports claim that Tesla Motors plans to place a lot of effort into fighting the law for most of 2016. So far, effort has been in vain due to the power of regional auto giants for the policy.
“There doesn’t seem to be much interest from the dealers, reports Mr. Jim Chen, Tesla’s VP of regulatory affairs, he reckons that firms “like GM want to continue to shut us out of the market entirely.”
With great environmental benefits and large scale state support, Tesla Motors Inc poses a serious threat to the ICE car retailers. The EV maker has gained a group of Michigan supporters as well. Earlier this year, members within the Federal Trade Commission urged Michigan law makers to lift the ban. Efforts to educate state citizens of the benefits of EVs and the unfair stance of the state are also said to be underway.
Tesla Motors Model X Sales Will Ride in Q4
The end of September saw Tesla Motors unveil its long-awaited Model X. CEO Elon Musk admitted that the car could have come sooner had the firm not dallied over the car’s luxury specifics. The car is now available for purchase and investors are eager for Tesla Motors to boost Model X production and sales. Model X sales bookings been fair so far. But the numbers are poised to rise significantly. So how many luxury Model X SUVs can investors expect to be sold by year-end?
The Motley Fool claims that Tesla Model X deliveries are off to a very slow start. It is believed that only around 13 of the cars have been sold so far. Tesla recently lowered its Model X price to $80,000. The move is sure to raise sales towards the end of the year, as it is a mere $5000 above the Model S.
The Model X is a pivotal vehicle for Tesla. It stands to double the company’s currnet addressable market. There are now over 25,000 orders for the car. This means the Model X should significantly boost income next year.
Tesla Motors Inc is expected to ship just a couple hundred luxury SUVs this Christmas period, as its production capacity expands.