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Discussion in 'Too Hot for Swamp Gas' started by philnotfil, Sep 3, 2014.
No free market for you!
Seems like Tesla is having the same issues that Uber/Lyft and other companies are having with vested business lobbies.
Evolve or go extinct (or hire lobbyists and complain)
Yeah, I agree to some extent. With Uber & Lyft though, there are some unresolved issues with their business model, which is specifically designed to skirt hired car/taxi regulations. In some ways I sympathize with the taxi services, since you have this business coming in selling rides for a fee, just like a taxi serivce, but then claiming they arent a taxi service because you are paying Uber instead of the driver. But usually when the genie is out of the bottle, you cant put it back in - see file sharing.
I actually think uber and lyft have a troublesome biz model but you are spot on about the genie/bottle.
Curious why u feel this way. I think the online rating system is the wave of the future in industries like this, and genius.
Down 2.6% today.
Now I'm only up 48% since May 16th.
I mean, if there's a rule they can't by law sell more than an slotted amount, where is the debate? I'm on my phone and unable to read the full links, perhaps the law itself is where the problem is.
There is a law and Tesla has broken it.
From my understanding, the dealership model came to exist as a way to accelerate the sales reach of manufacturers and ubiquity of the automobile by putting capital expenditure and risk onto franchisees. These franchisees quickly coalesced politically and have been able to create laws in most stated forbidding the sale of cars outside this dealership model.
Occasionally, disruptors like Tesla come along and complain about lack of access to the marketplace.
I see, every now and then you read one of these stories and it's like, "wait, that's a law? " I can't condone breaking the law, but it seems as if maybe one of those cases where time and society have passed the law by.
government seems to be working here for the established quo to prevent free market competition
as government does for many industries
how about some real campaign finance reform, allow Gov to work better for the people and allow the market to work itself out, and see where the chips fall?
crazy idea though
As much as I admire Tesla, they will do the same thing the dealerships did decades ago. i.e. if their business model becomes ubiquitous, then they will seek to codify it into law in order to prevent upstarts from chipping into their profits or market share.
The new Elio motors will have a similar structure as Tesla. The will sell the cars in a company showroom then deliver the car to your home. They signed an agreement with PEP Boys to be the official repair shops for the car.
Elon has certainly not shied away from using government to further his interests, so it's not outside the realm of possibility.
He's openly stated several times that he wants to revolutionize the world with EVs, so if he attempts to codify rules against other EV makers and their access, then he'd lose some prestige in my view.
Sure, and Google's motto was/is "dont do anything evil." So of course the realities of business kind of have a way of conflicting with ideals.
The dealership model was created so people would have a place to take their cars for repairs under warranty. That is a good thing IMO. However, in today's time, if people want to buy a Tesla knowing they may have to carry it a few states away to get worked on? I don't care. I personally like the car, but want to see a local dealer with a manufacturer licensed repair shop before I buy one. I don't think the local Cooter / Bubba knows too much about them there lectric cars.
Indeed, and I don't hold google on an alter any longer. Though I do rely on them heavily on life and work.
I will say that these two objectives are quite different.
Yeah, they are different, but once you've conquered the market, there isnt much to do other than try to hold on to it. Perpetual innovation is nice, but a lot of times its easier just to stiffle competition. The former is hard to pull off, especially when share holders want to be wowed and dazzled with magical new products year after year (like with Apple) no matter how well the company is performing.
I'm not sure this is the reason why they were created, but certainly a very real service provided as a reslut. Just as I don't think dealership associations/lobbies are fighting Tesla out of some altruistic sense of duty to auto consumers.
I agree with you on allowing the consumer to make that decision (buy a vehicle w/o a nearby service center).
I agree, again.
I think the reality will be: Musk will step away from Tesla fairly soon, particularly if they maintain their current momentum, and start to focus more on Mars/space.
Hopefully this will be the case so I can continue my man-crush.