Previous Laws similar to this senate bill failed to be passed.
There have been many attempts to try to pass bills in order to make it easier for consumers to bypass dealerships in the buying process. These bills never made it far. These previous attempts consisted of discussions about maybe putting a bill on the floor. As electric vehicles are becoming more popular, the debate over whether manufacturers can sell cars directly to consumers has been renewed.
Impact of this bill
If this bill passed, it would help to put more electric vehicles on Connecticut’s roads. The legislators who are backing this bill are looking to put 500,000 EVs on Connecticut’s roads by 2030. An increase in EV sales in Connecticut would help Tesla a lot. This legislation would apply to all EV manufacturers and not just Tesla.
Supporters of the bill
Supporters of this legislation are hailing it as something that will boost the economy and help the environment. They are saying that this bill is needed to bring more electric vehicles into Connecticut. The bill could also encourage consumers to trade in cars with a combustion engine. Supporters of the bill also mention freedom of choice. State Senator Haskell said, “If consumers want to purchase vehicles from a car dealership, they are free to do so, and if they prefer to buy from an E.V manufacturer, they may do that as well."
Opponents of the bill
Opponents of the bill argue that it will hurt car dealerships and kill jobs. The opponents also argue not buying from a dealership won’t necessarily benefit consumers. Timothy Kramer, dealership president of BMW Bridgeport said, “Direct sales model does not benefit consumers with lower prices or convenience or better maintenance despite the marketing. We oppose Senate bill 127 that bypasses Connecticut laws to select companies.”
Tesla’s presence in Connecticut
Connecticut has considerable charging infrastructure. I-95 has Tesla superchargers at many of the rest stops. If any state could handle a surge of Teslas and other EV’s, this would be it.
State Senator Haskell who is the head of the transportation committee said the following: “The Governor this year is pushing the transportation climate initiative, an investment that would bring tens of millions of dollars into EV infrastructure, charging stations across the state. But what good would that do if we don’t have the vehicles to charge?”
Check out this article where Tesla’s supercharger network is compared to the charging network made by emerging EV automaker Rivian.
The power and influence of car dealerships
Car dealerships in Connecticut see bills like this as something that will hurt their bottom line. They ultimately see the legislation as something that will eliminate jobs. It seems that the legislation might eliminate jobs, but it would help Tesla in a big way. These car dealerships have strong lobbying power in the state. This is something that supporters of the bill are looking to overcome.
What this bill could mean for Tesla
This bill could help Tesla immensely. Earlier today an analyst predicted that Tesla’s stock will grow 350% by 2025. Bills like this one will help get more Teslas on the road. It is unclear how much Tesla will benefit from this bill alone. However, the state of Connecticut has put a lot of money into charging infrastructure, so it makes sense that Tesla would want to take advantage of that.
Image: The AP
Daniel Cappo reports Tesla developments at Torque News. He has had a passion for cars ever since age five when his grandparents let him drive their old golf cart around their property in Upstate NY. He has attended numerous auto shows, and even got the chance to drive a Ferrari California on the track. Ever since Tesla opened up a dealership at his local mall, he's been an avid follower of their cars and technology. Dan has a B.S. in Public Communication from U Vermont. Follow Daniel on Twitter and LinkedIn for daily Tesla News.