Boston, MA, 10/3/2013 (WallStreetPR) – US based Tesla Motors Inc. (NASDAQ:TESLA), has been recently a lot of criticisms over its online sales calculator that depicts the monthly equal installments the buyers need to buy for their cars
In a 20-page complaint with the California Department of Motor Vehicles (DMV), the California New Car Dealers Association, (CNCDA) has accused Tesla Motors Inc. (Tesla) of misleading customers with deceptive advertisements about the affordability of its vehicles.
Though CNDA’s complaint filed on September 16, 2013, cites a number of issues, it mainly highlights the addition of a tax rebate in their advertisement that questions the eligibility of many consumers, based on their incomes.
“The tax credit is completely irrelevant to the purchase price for the Model S. Whether the customer never applies for the credit, has insufficient tax liability to claim the full tax credit, or can claim the full credit, the tax credit has no bearing on the purchase price of the Model S,” as said by the CNCDA.
Further CNDA added that by incorporating the tax credit in the advertised price quota of car, the company is not providing the true purchase price of the vehicles to the majority of the population.
CNDA is also of the opinion that Tesla’s online sales calculator, which is designed to show consumers what their monthly payment would be if they bought a Tesla car also provides falsified results.
Additionally, the aim of Tesla’s advertising is targeted towards high income group, many of whom would have a tax liability large enough to qualify for such a rebate.
Besides, the notion of checking out prices online is something a prospective buyer would prefer rather than one-to-one discussion with a salesperson. This will not only car dealer, but makes it simple for the car industry’s highest-bracket customers to research about the product.
It will be interesting to see how Tesla trades today. In the meantime, a small cap company caught our attention. mLight Tech, Inc. (OTCMKTS:MLGT) trades on OTCQB, the venture state marketplace for companies that are current in their reporting with a U.S. regulator (SEC, bank, insurance).
The company announced the launch of Ding King’s Retail Lead Referral Program, whereby consumers seeking Ding King’s services are instantly connected to Ding King Certified Professionals in their hometown. MLGT has an interesting concept. According to the press release, with the increased demand for quality technicians on the rise and every major insurance company recognizing paintless dent repair as the preferred method of repair for hail damage, Ding King seeks to capitalize on this huge market by selling these leads to its nationwide network of Certified Professionals. “This is a win-win-win,” comments Todd Sudeck, founder and CEO of The Ding King Training Institute. One of the largest challenges repair technicians face is generating customers. Ding King benefits by increasing revenues tremendously, while consumers get the highest quality repairs in the industry, with our Certified Ding King Network of Service Professionals benefiting with a low cost basis for generating a new customer, with repeat and referral customers at no additional cost.
It seems MLGT and TESLA will be on the spot light today owing to the recent news.