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Sierra Club, Koch Brothers Join Tesla in Dealer Fight

Tesla Motors Inc.'s efforts to gain the right to sell its electric cars directly to consumers has been joined by groups ranging from the environmentalist Sierra Club to the conservative Americans for Prosperity political action group funded by the Koch brothers.

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Tesla Motors Inc.'s efforts to gain the right to sell its electric cars directly to consumers has been joined by groups ranging from the environmentalist Sierra Club to the conservative Americans for Prosperity political action group funded by the Koch brothers.

Bloomberg News reports that both organization are among 10 that have signed a letter supporting Tesla's campaign.

The signatories acknowledge their difference of opinion on other matters. But they say they all oppose state auto franchise laws that block direct distribution, calling such rules antiquated barriers to innovation.

The letter says the franchise laws were enacted to shield existing dealers from being undercut by factory-owned stores set up to sell the same products. The letter asserts such rules should not prevent a newcomer such as Tesla, which has no dealers, from setting up a factory-only distribution system.

Gardner Business Media - Strategic Business Solutions