This post is dedicated to my dad. I learned today that my dad is fascinated by Tesla and has been following the question of whether Tesla is a technology company or a car company. In a sense its both (The amount of patents that Tesla has for the model s is around 150). The companies straight to consumer business style has not made dealers happy. Currently car Dealers in four states are in lawsuits attempting to prevent Tesla from owning sites to sell its vehicles under the belief that giants of the industry would begin to do the same putting the dealers out of business.
The dealers are arguing that they are protecting consumers and some people agree. In North Carolina the state senate unanimously agreed to prevent Tesla from selling straight to consumers. If Tesla secures straight to consumer avenues that the precedent for other car companies to the same emerges. However, its interesting to consider the argument that Tesla isn’t a car company but a technology company. In a way its not easy to argue against a company producing cars with buckets of technology not available on any other model. In the end of the day though the truth is apparent. Tesla is a car company because they are producing cars. If GM tomorrow started selling mangos it would still be a car company too.