Tesla's deal to build its gigafactory in Reno, is a win-win scenario. Nevada gets a much needed economic boost, and Tesla gets numerous incentives including direct sales. While the dealerships were not keen on the idea at first, they have come to realize that Tesla's presence will only benefit them.
An update to a previously published article from Automotive News, now includes the dealerships' reaction to the deal. Initially the Nevada dealership association opposed the direct sales exemption for Tesla. The automaker was able to obtain a dealer licence for a story in Las Vegas which the association claimed violated state franchise laws.
Once the dealerships realized the potential positive impact the gigafactory would have on the local economy, they changed their position.
"Our entire state will benefit from it...It's the largest project northern Nevada has ever seen...Dealers should benefit, too...The gigafactory is expected to create 6,500 direct jobs and thousands of indirect jobs...Those new people coming into town are going to buy up cars and trucks from my auto dealers...They're probably not going to buy up Teslas at $100,000 a copy." - Wayne Frediani, executive director of the Nevada Franchised Auto Dealers Association
It's refreshing to see that Nevada dealerships understand there are some battles worth fighting and some worth letting go.
Photo: AP
If you have a question, a tip, or something you would like to to share about car-buying, drop me a line at AutomatchConsulting@gmail.com and be sure to include your Kinja handle.