Lucid sues the state of Texas so it can sell its electric vehicles without concessions
We can blame the automaker Tesla for certain things, but we can’t blame it for the audacity it showed when it decided not to develop a network of dealerships and to sell its electric vehicles directly to buyers through his website. Tesla thus thumbed its nose at a well-established business model, which gave it a certain competitive advantage; however, the manufacturer failed to impose its vision everywhere.
It is the same fight that undertakes Lucid Motors, another California-based electric vehicle manufacturer. The latter recently announced that he has sued the State of Texas to invalidate the law that forces automakers to sell their vehicles through independent dealerships. Lucid claims this is a protectionist measure that robs the brand of a good number of sales in Texas.
The situation is the same for Tesla, which is unable to sell its vehicles in Texas, even if Elon Musk’s company has just established its headquarters there and built a giga-factory there.
According to the lawsuit, Lucid Motors mentions that the State undermines the competitiveness and the rights of companies by forcing them towards a single business model. Lucid, which markets the Lucid Air at a base price of $121,500, in particular, has sales studios across North America, including one in Montreal, to sell, deliver and service its vehicles.
According to Lucid Motors, the development of a network of dealerships to sell its vehicles in certain states would not be economically viable. Other automakers don’t see the same thing and add that they have always had to adapt to this reality.
Lucid employs the same legal strategy as Tesla that won a similar lawsuit against the State of Michigan 3 years ago.
Conclusion
Even if automakers want to force newcomers to play by the rules, chances are they would also like to be able to sell their vehicles directly to consumers. Are concessions on the way out?
