Why Would Arizona Allow Direct Tesla Car Sales? To Get A Tesla Factory In The State, Of Course

An electric bargaining chip.

While other states like New Jersey are moving to ban direct sales of Tesla cars, Arizona is mulling over the idea of allowing the automaker to cut out the middleman. So what’s different in Arizona?

It’s not that Arizona is just nicer than other states, but it has its eye on a bigger prize than keeping car dealerships happy — it wants Tesla to build its massive factory in the state, reports CNNMoney.

State lawmakers have a bill in the works that would allow Tesla to sell electric cars directly to consumers, all as part of its plan to woo the company and convince it that ARizona is the best place for its so-called gigafactory: A $1.6 billion battery production center that could give up to 6,500 people jobs.

Tesla is considering four states, with Arizona among them, and lawmakers there want to give the state an edge over competitors.

“We wanted to send a message that Arizona is open for business,” the bill’s sponsor, Warren Petersen (R) told a CNN affiliate, adding that the measure would have only a “very small impact” on the state’s auto market.

The bill will still face objections from those in the auto dealer industry, however, with lobbyists likely to make a big push to keep Tesla’s direct sales out of Arizona.

If it does manage to get the bill through, it might be a big advantage over other states pitching Tesla for its factory. Nevada’s dealership law is up in the air right now, while New Mexico and Texas have banned direct sales.

Arizona may allow Tesla sales [CNNMoney]

by Mary Beth Quirk via Consumerist