Tesla Woos Car-Guy Lawmakers With Counter Dealer’s Cash

According to Bloomberg,

Tesla Motors Inc. was in trouble in North Carolina. Prohibited from opening showrooms there, it was on the way to being unable to sell cars at all when the state Senate voted unanimously to block online auto sales.

Then Tesla turned out a lobbying weapon that, in the home state of stock-car racing’s hall of fame, spoke louder than money. It parked a Model S at the capitol and invited lawmakers and Republican Governor Pat McCrory to take it for a spin.

“When you accelerate it, it was the same sort of feeling I got when I test-drove a Mustang Boss back when I was probably 23 years old,” House Speaker Thomas Tillis, 53, a Republican running for U.S. Senate, told the Raleigh News & Observer.

So ended the anti-Tesla legislation. Tillis’s chamber never voted on it.

Chief Executive Officer Elon Musk’s strategy of selling his $70,000-and-up electric car directly to customers through the Internet or company galleries has in at least seven states pitted him against franchised dealers who view Tesla’s marketing and sales models as threats to their existence.

Tesla delivered about 5,500 Model S in the third quarter, more than twice as many as it did in all of last year. It said Nov. 6 it plans to deliver “slightly under 6,000” this quarter with Musk saying demand exceeds supply. Its sales depend on access to customers, which it reaches through showrooms modeled on those of tech companies.

Washington Threat

A Tesla Motors Inc. Model S Automobile (Bloomberg)

A Tesla Motors Inc. Model S Automobile (Bloomberg)

The fight with dealers isn’t the company’s sole challenge. Tesla also faces a threat in Washington, where its Model S is under U.S. investigation following three battery fires, and three workers were injured Nov. 13 at its only assembly plant in an industrial accident.

At both the state and federal level, the Palo Alto, California-based company is running a risk Microsoft faced in the 1990s, when it found itself in the midst of a government antitrust action without an experienced advocacy team to shepherd it through the system and build allies for the future.

Musk is putting his star power against one of the best connected and most experienced U.S. lobbies, which has outspent Tesla by multitudes in state capitols and often has some of their own serving as legislators.

Dealers spent $86.8 million on state election races across the U.S. between 2003, when Musk created Tesla, and last year, according to the National Institute on Money in State Politics, a nonprofit in Helena, Montana. They’ve also pumped $53.7 million into federal campaigns, the Center for Responsive Politics found.

Tesla’s investment in state and federal politics was less than $500,000, those same sources show.

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