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4 Things Tesla’s Fight With NADA Tells Us About The Industry

In 2013, Tesla and leading man Elon Musk faced off against the National Automobile Dealers Association. That was four years ago, and the war is still raging. In the blue corner, Tesla wants the right to be able to sell cars directly from the company itself. Trying to maintain the status quo in the red corner, NADA wants to keep third-party sales laws in place. Apart from the bitter divide in politics, there is a lot to learn from the dispute. Here are four things which are more apparent than ever thanks to this clash of the titans.

Tesla Model 3

The Setup Is Wrong

If you didn’t know already, it’s illegal in the US for a company to sell cars without third-party involvement. Yep, you read that right. Quite simply, dealerships are necessary for the auto industry, and no one knows why. There is talk about how it helps small businesses and SMEs are the lifeblood of the economy. Of course, SMEs have taken a hit under the Trump Administration, while the average firm only last two to three years. So, if this argument doesn’t hold water, what do we know? Well, it’s clear that the system is wrong, as the decline in dealerships across the country shows.

Change Could Happen

Chris Christie is determined to prevent change, but Republicans don’t feel the same. From Rick Perry (oh yes) to Marco Rubio, conservative governors have come out in favor of amending the law. And, the momentum shift doesn’t stop there because there is demand in the court of public opinion. With the rise of Cars & Co and other internet-based companies, people prefer a quick and straightforward process. Plus, these firms have great deals at affordable prices. Therefore, the public knows this could get better if there is a change to the law.

It’s All Politics

You should notice the names of people like Perry and Christie in this story. Simply put, the debate began in 2013 before the GOP nomination went to Donald Trump. That means the protagonists saw an opportunity to garner support and widen their base. Let’s face it – there’s no better way to appeal to Americans than to promote small businesses. After all, there are 28 million of them in the US. Whether there is an amendment or not, people are playing politics with American lives.

Companies Have Real Power

In the past, massive corporations and the government were like two peas in a pod. Then, Silicon Valley began to produce huge businesses and everything changed. Nowadays, it isn’t rare to see Apple fighting the FBI or Uber challenging transportation regulations. Musk is just one billionaire in a long line that is willing to fight the man and make real change. Because of this, they have real power to make a difference. Oh, and don’t forget they have the masses on their side, too.

The war will continue to rage on, but this could be a watershed moment in American culture.

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