Auto Dealer System Evolution is Inevitable, Says Analyst (TSLA)
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Price: $374.01 -1.3%
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 14 | New: 29
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 14 | New: 29
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Wedbush maintained an Outperform rating on Tesla Motors (NASDAQ: TSLA) with a price target of $295.00. Analyst Craig Irwin commented on Tesla's fight with automotive dealers, calling auto dealer change inevitable.
"We hosted a conference call with Aaron Jacoby, Chair of the Automotive Group at Arent Fox LLP to gain perspective on the brewing fight between Tesla and the automotive dealers," said Irwin. "Mr. Jacoby provided an overview on the evolution of the dealer system, the basic protections in the current franchise system, and the issues relevant to the introduction of new sales models. He also discussed the major arguments against the predominant dealership structure; namely that dealerships are costly, outmoded, and create a monopoly. There are significant strengths to the current dealer system, but future evolution is inevitable, in our view."
"The recent modification to dealer licensing laws in New Jersey may provide an early test case for challenging prohibitions against Tesla’s sales model, with other challenges possible in New York and Massachusetts. We would expect Tesla to pursue both legislative and court actions in these challenges. Mr. Jacoby expressed optimism there will be constructive routes to resolve this conflict, which could start with a national association like the Association of New Motor Vehicle Boards and Commissions," he added.
For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.
Shares of Tesla Motors closed at $220.44 yesterday.
"We hosted a conference call with Aaron Jacoby, Chair of the Automotive Group at Arent Fox LLP to gain perspective on the brewing fight between Tesla and the automotive dealers," said Irwin. "Mr. Jacoby provided an overview on the evolution of the dealer system, the basic protections in the current franchise system, and the issues relevant to the introduction of new sales models. He also discussed the major arguments against the predominant dealership structure; namely that dealerships are costly, outmoded, and create a monopoly. There are significant strengths to the current dealer system, but future evolution is inevitable, in our view."
"The recent modification to dealer licensing laws in New Jersey may provide an early test case for challenging prohibitions against Tesla’s sales model, with other challenges possible in New York and Massachusetts. We would expect Tesla to pursue both legislative and court actions in these challenges. Mr. Jacoby expressed optimism there will be constructive routes to resolve this conflict, which could start with a national association like the Association of New Motor Vehicle Boards and Commissions," he added.
For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.
Shares of Tesla Motors closed at $220.44 yesterday.
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