Tesla Motors Inc does not have stores in over half of the United States. A map on Tesla’s website reveals that the firm has 78 stores in the U.S that are spread out among 21 states and Washington, D.C. Of those, about a third of them are in California, says a report from Bloomberg.
Tesla banned by law
Tesla Motors Inc sells its cars directly to consumers either through one of its brick and mortar stores or online. Buyers love the “no dealership” model and that’s something that is setting the company apart from other automakers. As per Tesla’s website, stores are coming soon to Owing Mills, Connecticut, Greenwich and Maryland. Other than Tesla stores, there are states that have “galleries”, which allow a potential buyer to admire the company’s cars but without an opportunity test drive one.
The EV firm has been prevented from opening up stores within the borders of states like Texas and Michigan, which have passed legislation against selling their cars directly through stores. However, such an approach of states banning manufacturers from directly selling their vehicles doesn’t mean that its public pension can’t own a piece of Tesla, notes Bloomberg.
Public pension funds love it
As per data compiled by Bloomberg, thirteen large U.S. Public pension funds have held shares in Tesla as of June 30 including Michigan and Texas – the state where Tesla’s direct sales are banned.
Spokeswomen – Danelle Gittus – in an e-mail to Bloomberg said that in order to pay for the benefit payments and lock-in gains, Michigan’s Treasury Department just sold off its Tesla shares after the Q2. Further, she said that more than $22m had been gained from the sale for four different pension systems, including the plans for Police and Judges.
As per Matthew Sweeney, a spokesman for the state comptroller, New York holds $98.3m worth of Tesla shares – the most Tesla stock of the public pension. About 346,000 of the Fund’s holding is held in index holdings while the rest have been held by Active managers, notes Bloomberg.
It’s about good investment
Keith Johnson said that Public pension plans should act keeping in mind what would be the best for the beneficiaries by making prudent investment decisions. Johnson represents pension funds for law firm Reinhart Boerner Van Deuren. “They’re not supposed to make decisions based on political preferences,” he said. “It’s not a public policy question for the public pension fund, it’s, ‘Is this a good investment?'”
This year, Tesla Motors Inc shares have not been doing very well. Year to date, the stock is down about 18%. The EV firm, on one hand, has been battling for the take-over of money-losing solar company SolarCity, while on the other, it has been facing scrutiny after a fatal crash of a Model S that resulted in a death of the driver.