Florida Governor Ron DeSantis has recently signed a legislation that restricts most direct-to-consumer vehicle sales, but there are certain provisions that will enable Tesla to continue operating its unique franchiseless sales model.
Initially, there were concerns that this bill would pose a threat to Tesla’s non-traditional approach of online and retail location sales. However, the legislation specifically targets automakers that have existing franchise agreements in place.
Ted Smith, the president of the Florida Automobile Dealers Association, explained that this provision will not stifle digital innovation of car stores. Instead, it aims to prevent traditional automakers from bypassing dealerships.
“Through this distinction, we have clearly differentiated between manufacturers that have never relied on dealers and those who have heavily relied on dealerships to market and sell their vehicles in Florida,” stated Smith.
The Alliance for Automotive Innovation, a trade group based in Washington, D.C., believes that this differentiation will create an unfair regulatory system.
Wayne Weikel, the Vice President of State Government Affairs at the Alliance, expressed in a letter to Governor DeSantis that the bill forces certain automakers to comply with restrictive and expensive franchise laws, while exempting others.
Additionally, the legislation mandates that dealerships receive at least 8 percent compensation for any post-purchase electronic vehicle upgrades or activations sold within two years of a new-vehicle sale.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.