Tomahawk, WI 12/19/2013 (BasicsMedia) – Tesla Motors Inc (NASDAQ:TSLA) is already raffling feathers in the auto industry. The company is battling auto dealers in the U.S. for a space to sell its vehicles directly to buyers. This move is objected to by auto dealers because it gives the company what they call “undue advantage.” But TSLA says it needs that “advantage” because of the unique nature of its vehicles which typically require more explanation to the buyers on the usage and operations.

The company has already won in several states and the fight continues in more other states. But even in the states where TSLA is allowed to sell directly, it is only issued with a single license which means it cannot run more than one showroom in the states.

Away from auto dealers, the company is also at war with automakers. Its vehicles are powered by battery and they require far less maintenance compared with vehicles which are powered by gasoline.

By touting its cars as reliable, cheap to maintain and safe to drive, Tesla Motors Inc (NASDAQ:TSLA) is annoying the traditional motor industry. Its efforts seem to be geared at drying their revenue pot and they are not taking this kindly.

The fact that traditional automakers and dealers are trying to erect obstacles for Tesla Motors Inc (NASDAQ:TSLA) can be interpreted in many ways. It could be that they acknowledge that TSLA’s approach to business is superior to theirs. It could also mean that they agreed that battery-powered vehicles are the next big thing.

Since Tesla Motors Inc (NASDAQ:TSLA) announced its intension to produce pickup trucks and enter the mass market with budget cars of global appeal, murmurs have been heard from traditional automakers.

Low-cost electric cars

Presently, Tesla Motors Inc (NASDAQ:TSLA) offers its flagship car Model S at a price targeted at the luxury class. This means that the car has not impacted heavily on the sales of the mainstream. Model S starts at about $70,000 and goes up to about $100,000. This means that its uptake is limited to the luxury class.

But even so, the demand for the car is increasing rapidly. Last year TSLA delivered just a few thousand cars, but this year, its quarterly deliveries have tripled its full-year sales in the previous year. The demand for Model S is up in the U.S., Europe and the company is also getting more orders from China.

If this demand for electric cars is anything to go by, it leaves no doubt that by offering a mass market electric car, TSLA would hit a jackpot and this is what mainstream automakers cannot wish to happen because it will dry their port. TSLA is rumored to be planning rollout of a budget car that starts at $30,000 without the extra cost of refueling or high maintenance. This car will obviously take the market by storm.

There are two reasons why this will be so. One, its cost and the fact that it saves in terms of maintenance are key enticing factors. Two, campaign for cleaner environment also makes battery-powered vehicles the appropriate machines to have on the roads, so more environmentalists could be seen campaigning for Tesla Motors Inc (NASDAQ:TSLA)’s cars, thus expanding its market.

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