Why Tesla Motors (TSLA) Is Down Today

NEW YORK (TheStreet) -- New York State could be the newest battleground for Tesla Motors  (TSLA) to directly sell its electric cars to customers.

Automobile dealers in New York failed last April to convince the state court to reverse the state motor vehicle department's decision to allow Tesla to directly sell its cars in the state. But the dealers are resuming the fight after a recent ban on Tesla's sales model in New Jersey and another battle in Ohio. 

The New York Post reports the car dealers want the ban to occur as early as this summer. "My hope is that we are going to be the next state," Mark Scheinberg, the president of the Greater New York Automobile Dealers Association (GNYADA), told The New York Post on Thursday. "I feel confident."

If New York were to ban automakers' direct sales, then Tesla would be unable to sell cars directly to customers in New York, New Jersey, Arizona, Colorado and Texas. Tesla managed to negotiate an agreement in Virginia to sell its cars directly from just one store.

Tesla fell 3.24% to $230.09 at 10:46 a.m. on Friday.

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TheStreet Ratings team rates TESLA MOTORS INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."

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