Aaron Jacoby Talks to Bloomberg News about Tesla Motors Lawsuits

Arent Fox’s Automotive leader Aaron Jacoby was quoted in Bloomberg News after recent lawsuits were brought by Ohio car dealers that would prevent Tesla’s showrooms from letting people order customized Model S electric cars right from the factory.

The car dealers argue that Tesla’s direct sales violate state automotive franchise rules — and are a threat to a bedrock US institution.

Bloomberg reported that, “Dealers fear Tesla’s model would set a precedent that could let other automakers sidestep the way independent franchisees have sold and serviced vehicles for eight decades. If Tesla succeeds in bypassing middlemen, some argue then future startups or entrants from China or elsewhere could sell directly or even create online retail outlets that sidestep dealers entirely… This isn’t the first time that 42-year-old Tesla co-founder Elon Musk has disrupted established industries.”

Mr. Jacoby stated that, “What dealers are opposed to with Tesla, I believe, is that it’s the first step on the slippery slope toward dismantling the system in place that provides protections for the dealers.”

To read the Bloomberg article, click here.


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