AutoNation CEO: I'd sell Tesla electric cars

Right now, Tesla Motors only sells its product directly. But if it ever moves to a retail model, the dealership giant would be 'completely open' to selling its 'marvelous' vehicles.

By MSN Money Partner Sep 6, 2013 2:18PM

CNBCFile photo of AutoNation Inc CEO Mike Jackson on September 15, 2008 (© Rebecca Cook/Newscom/Reuters)By Matthew J. Belvedere

 

Tesla Motors (TSLA) only sells its "marvelous product" directly -- but if it ever moves to a retail model, AutoNation (AN) would be "completely open" to selling its vehicles, said Mike Jackson, the chairman and CEO of the dealership giant.

 

"It's an excellent electric car," Jackson told CNBC's "Squawk Box" on Thursday. "If you take the Fisker, which was a terrible car, the company is now bankrupt. You take Tesla, which is an outstanding car, and the company is really finding its way."

 

By all accounts, Tesla cars are well-made and safe, but the brand has also gotten a boost from its Silicon Valley-cool factor and the cult-of-personality that is billionaire founder Elon Musk, who's said to be the inspiration behind the "Iron Man" movie depiction of Tony Stark.

 

Musk tweeted Thursday morning plans for a cross-country trip in a Tesla Model S to prove it's not that tough to keep it charged.

 

Shares of Tesla are up nearly 400% year-to-date, bringing the Palo Alto, Calif.-based company's market cap to about $20.5 billion.

 

Meanwhile, in California, the nation's biggest auto market, Tesla has become the third best-selling luxury car. Not the third best-selling electric luxury car in the state, it's the third best-selling luxury car there, period.

 

"Tesla has a direct model at the moment. But when they want to go to higher volumes, I think they're going to need a different retail model," said AutoNation's Jackson. "And I'd be completely open to selling Teslas. It's a marvelous product."

 

A recent report from the California New Car Dealers Association showed the Model S -- the only Tesla on the market so far with a $70,000 price tag -- had 4,714 registrations in the first half of 2013 in the state, trailing the Mercedes E-Class and the BMW 5 Series but beating out the Lexus GS and the Audi A6.

 

In June, Tesla's popularity soared, with nearly a quarter of this year's California registrations coming in that month alone.

 

"If you buy in California, you're going to get a $7,500 check from the (federal) government," Jackson explained. "You get an additional $5,000 from the state of California. You'll also get a credit for putting in a home-charging station. You get a lot of money in California."

 

California accounts for about half of Tesla's nationwide sales.

 

More from CNBC

Tags: ANTSLA
1Comment
Sep 6, 2013 3:16PM
avatar
This company couldn't make it without corporate welfare paid by taxpayers.  What happens to the water tables beneath landfills where the batteries will eventually be disposed of.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

116
116 rated 1
265
265 rated 2
429
429 rated 3
612
612 rated 4
499
499 rated 5
525
525 rated 6
701
701 rated 7
533
533 rated 8
337
337 rated 9
131
131 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
COPCONOCOPHILLIPS9
TAT&T Inc9
DVNDEVON ENERGY CORPORATION9
EOGEOG RESOURCES Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.