House Bill 2123, sponsored by Rep. Warren Petersen, was originally introduced to address separate issues, however it was amended by Senate majority leader John McComish to include provisions that would allow a company to sell vehicles directly to consumers. The language specifically applies to automakers that only make electric vehicles and have established service centers in the state.
“What has happened … is that in some states, they are moving to outlaw that kind of operation,” said McComish, as quoted by CNBC. “But I think we should be about opportunities for innovation rather than stifling innovation.”
Arizona was named as one of the states Tesla is considering for its multi-billion-dollar ‘gigafactory’ battery plant. Senator Bob Worsley claims the bill is “not a quid pro quo,” however he does want to send the message that Arizona welcomes the opportunity to work with “large successful companies.”
Dealer lobbyists have maintained the same opposition arguments that they’ve presented in other states, claiming that Tesla is asking for a special exemption to existing laws that are designed to protect consumers.
“What we’re opposed to is allowing one of our competitors to go around the dealer network and sell directly to consumers,” said Mike Gardner of the Alliance of Automobile Manufacturers. “We think we should all be treated the same.”
Tesla already has showrooms in the state, however the existing dealer-franchise laws force the company to finalize its sales in California and ship the cars to customers who choose not to fly in and pick up their Model S on the West Coast.
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