Tesla Motors Inc (TSLA) is going to support a bill for raising the 150 per year vehicle limit in Georgia
Tesla Motors Inc (NASDAQ:TSLA) is no authorized to sell many vehicles in Georgia. On average, they can only sell around 12-13 per month.
The reason why Tesla has been limited is because they are not following the franchised dealership model. This means that Tesla can only sell 150 Model S sedans per year since they operate under a special zero emission exemption that lets them sell a limited amount of cars directly to the public.
There is a Tesla Motors backed proposal that was introduced on February 6th by Republican House Representatives Chuck Martin, Earl Ehrhart, and Buzz Brockway that would increase that number 10-fold up to 1,500 per year (125 per month).
There are reports that Tesla sold around 500 out of Atlanta alone last year. According to the Atlanta Business Chronicle, Georgia customers can look at a Model S at a Tesla boutique and then learn more about them from the Tesla website.
The orders take place through the website. Once the car is ordered, it is manufactured and delivered in California before getting sent to Georgia. The customer has to self-register the Model S with the Georgia Department of Motor Vehicles after that. Tesla does not want to force their Georgia customers to do this.
The Georgia Automotive Dealers Association will not likely support this bill. One of the reasons why the Model S is popular in Georgia is because the state offers a $5,000 incentive on top of the $7,500 federal credit.