Tesla Motors Puts Differences Aside, Plays Host to Despised Lobbyists

Tesla Model 3 (TSLA)

Tesla Motors Inc , the world’s electric car making giant, is hosting a party for a conservative lobbying group, which was shunned by Ford, Google and many oil companies because of its opposition to climate-change initiatives. Thursday evening, the automaker hosted a reception at its Washington, D.C. showroom for a new ALEC venture, says Bloomberg.

Why is Tesla hosting a reception for ALEC?

Tesla is not a member of the American Legislative Exchange Council (ALEC), but it is still hosting a reception for their new venture. The party at the Tesla showroom promises an evening of ‘hors d’oeuvres,’ cocktails and networking. The guests will be able to meet the leaders of the newly created “Energy Innovation Project” of ALEC. The project is dedicated to assist states in forging policies that foster a culture of entrepreneurship and innovation surrounding the US energy resources.

Tesla’s involvement is limited to providing its showroom as a destination of the party, but it is an unusual act by a firm, whose CEO Elon Musk is an active supporter of carbon taxes, whereas ALEC actively lobbies against them. Tesla’s K street store is regularly used for events and cocktail receptions, which it possibly does for building business and luring consumers, notes Bloomberg.

Tesla Motors Inc is working hard to convince states to enable it to sell its electric cars directly to the consumers, without going through any car dealers. The EV firm is fighting a legal battle over the same in many states, including Michigan. It recently won in Virginia though.

Tesla Motors Inc. (TSLA) Store in Southern California

Tesla’s involvement limited to just donating its showroom

The new project of ALEC “Energy Innovation Project” is funded partly by the ClearPath Foundation. ClearPath and its founder Jay Faison are dedicated to persuade conservatives to support clean energy and battle climate change. Sarah Hunt, the head of ALEC’s Energy Innovation Project, in a previous role at a different organization opined in favor of carbon taxes as a cost-efficient and more elegant way to decrease greenhouse gas emissions, notes Bloomberg.

The ALEC energy project is driven by the belief that private innovation and free-market values can offer solutions to environmental challenges more successfully than top-down regulations, said Hunt. “Innovation is a huge way to solve our problems,” said Hunt. Talking of Tesla Motors Inc , Hunt said the automaker is not a member of ALEC, and beyond the donation of its showroom for Thursday’s party, the electric carmaker is not contributing to ALEC or supporting it.

Mike McKenna, a Virginia-based energy lobbyist and GOP strategist, said that he fears the involvement of Tesla and the creation of the Energy Innovation Project will result in “unfortunate deterioration of what has been a very strong focus at ALEC – keeping energy affordable and abundant and trusting consumers more than government.”

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.


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