Is Tesla the New Tucker?

Growing up in Michigan, it was hard not to be bombarded by the “Big Three” – GM, Ford and Chrysler. The funny thing is that many of those big three swooped in and gobbled up or trampled on some of the best car designers and companies in the world.

In 1946-8 there was a company that thought it could compete with the mass produced automobiles – the Tucker.

They were modern. Sleek. Innovative. New mechanics. Everything about them was awesome.

Until, of course, they ran into legal concerns and Sen. Homer Ferguson (R-MI). It would appear that the Tucker was just a bit too ahead of its time and didn’t pay the requisite homage to the “status quo.”

Sound familiar?

Today, the Tesla, under the guidance of Elon Musk, is also trying to change the automobile business. And they are running into fierce opposition from dealerships who are heavily lobbying government to protect them from the new business model.

In the 1980s, the industry was completely undercut by smaller, cheaper, more economical vehicles from outside the United States. We now have more economical vehicles in the US from Toyota, Honda, VW, Hyundai, Mazda, etc. Today, Musk is trying to change the industry from within, which could improve the US economy.

Not only is the Tesla a superior all-electric vehicle that will rival any high-end, gas-powered machine, but they are also looking to change the sales model, which has the Virginia Automobile Dealers Association way out of whack.

Don Hall, president of VADA recently said:

“For the last 29 years, I have fought as a gladiator to protect the rights of Virginia auto dealers and their franchise system…This system is under attack by the likes of Tesla and many others out there who believe the franchise system is a dinosaur and no longer works….Let’s all strap on whatever it takes to win.”

Um. Okay, Don.

I don’t think we need to go all Russell Crowe and slash away at Joaquin Phoenix.

In fact, as conservatives, there’s some really interesting things going on with the Tesla innovation.

First, they’ve invested in Virginia. Not only does the company have sunk costs in supercharging stations, but they are also trying to open direct-to-consumer sales points in Virginia.

The company does have a store in Northern Virginia and has recently leased commercial space in Short Pump. Just last week they scored a win when the DMV Commissioner Richard D. Holcomb recognized that they meet requirements under Virginia law to open this second Virginia store.

The point is that the company is making its vehicles available locally and providing the “fuel” the car needs independently. Dealerships and gas stations are not amused.

Second, since when do we protect industry from innovation? What makes America great is its competition and changing models. We work harder, faster, cheaper, and more profitably. If you can’t do that, you lose. It’s a very simple concept.

Third, does the VADA really think that hundreds of thousands of Virginians are suddenly going to flock to the DC or Richmond markets to buy six-figure Teslas in lieu of a Ford Focus or Chevy Malibu? Probably not.

Sure…the franchise model might take a bit of a hit with Virginians suddenly able to buy direct – but that’s the free market.

Adapt and overcome. Make things easier for your consumer. Don’t be such a wimp.

If the VADA focused on the consumer, and less on trying to strap something on, then maybe we’d all feel a little less screwed when we go to buy a car.

Bottom-line: This is innovative, interesting, and free market driven. Why am I not surprised to see big government and big industry suddenly clench up?