Electric vehicle sales are growing around the world, and EV maker Tesla is the most valuable automobile company in the world.
So why can’t you buy a Tesla in Alabama?
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First, a few numbers. According to the U.S. Department of Energy, there are little more than 13,000 electric vehicles registered in the state of Alabama. That’s far behind California, which leads the nation with 1.2 million registered EVs.
In the U.S., Tesla has the largest market share of EV sales, dominating with 49%, according to the Associated Press, though other automakers are making inroads. Globally, Tesla commands 17% of market share. The company is worth a staggering $1.4 trillion.
Tesla also accounts for the two top selling electric vehicles in the U.S., the Tesla Model Y SUV and the Tesla Model 3, according to Rho Motion. The Model Y SUV retails for nearly $45,000, while the Model 3’s least expensive version sells for around $42,000.
According to Tesla, there are currently 16 Tesla supercharger stations in Alabama. There are also 39 cities with electric charging stations throughout the state.
But if you want to buy a Tesla, you’ll have to drive a little while to look over the models in a showroom. There are four dealership galleries in Tennessee, six in Georgia, 24 in Florida and even one in Mississippi. There are stores in 39 states and the District of Columbia.
Tesla relies on company-owned dealerships and online sales, rather than franchise dealership sales like other automakers. This strategy allows Tesla to control each aspect of the product, from assembly to sales. The automaker also relies on word of mouth instead of large scale marketing.
However, Alabama is one of several states where the law prohibits automakers selling vehicles factory direct to consumers. This has been a norm historically since the beginning of the auto industry. Alabama state law prohibits them in a passage dealing with “unfair and deceptive trade practices.”
According to the National Automobile Dealers Association, the dealership model allows automobile makers to focus on vehicle production, leaving dealerships the job of sales and maintenance. In theory, the system is also supposed to help consumers by keeping prices low due to competition between dealers. Consumer advocates argue auto sales should be as easy as buying other items online – allowing the buyer to customize their order and click.
In 2016, former State Sen. Tom Whatley, R-Auburn, proposed Senate Bill 22 to “allow a manufacturer of alternative fuel vehicles to sell and lease its vehicles directly to the public.” That would have applied to Tesla and other manufacturers of cars fueled by electricity, natural gas or propane.
The bill died in committee.
