Tesla & Auto showrooms in Nevada – Why not??

If you’ve been following the big Tesla news hitting Nevada & currently sweeping through a special session of the legislature, you know there’s a lot on the table in the form of concessions that Tesla is asking of Nevada & its citizens.

First up – Yes, I am in support of Tesla locating their facility in Storey County which is nestled right outside the Reno/Sparks (Washoe County) area and not far from other northern population centers Carson City (Carson City County) & Dayton (Lyon County)…..this project will be a potential boon to those areas. Nevada needs to diversify the economy, that for too long has been counting on cyclical industries as mining (ebbs and flows based on speculative mineral prices) and gaming / tourism (which ebbs and flows based on US & world economic conditions). Nevada has been relying on these two taxation bases for way too long.

Now, I’m far from an expert on all things taxation………and there’s items in this Tesla bill that are better left to experts more in the know than I………..but there’s one aspect that Tesla is asking for that, to my pea brained thinking, seems to be such miniscule monetary item in a bill that could be worth $1,250,000,000 ($1.25 Billion).

This one item I am questioning is the waiver that allows Tesla to sell cars direct from the factory without having to go through the usual dealership type of entity that all or most other auto manufacturers have to do. So why does Tesla want or need to avoid the minimal cost of locating, what would be at most, 3 dealerships in Nevada? The Reno/Sparks are might warrant one location and the Las Vegas area might warrant two but could live with only one.

Further, these “showroom wouldn’t need to be the scope and scale of a traditional dealership, which has service bays, sales rooms, and vast parking for a sizable inventory………no, Tesla could do a simple showroom of 20,000 (or less) square feet……..hire 3 to 5 sales people (if that many are needed) and park 3 to 5 models inside the building. That’s it! No huge acreage required for vehicle inventory, no additional cost of service bays and associated equipment……….just a simple room with two toilets, a few offices and space for 3 to 5 cars……….this is a $500,000 initial investment – Yet for some reason Tesla can’t or won’t go to this paltry expense or effort in Nevada?!?!

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