AutoNation (AN) CEO Jackson Backs Tesla's (TSLA) Direct-Sales Efforts

As Tesla Motors (Nasdaq: TSLA) looks to get direct-sales licensing in several more U.S. markets, the company has at least one unlikely executive on its side.

AutomotiveNews noted today that AutoNation (NYSE: AN) CEO Mike Jackson said that preventing direct sales by Tesla could hurt the franchise system for all dealers. He points to states like Arizona and Texas -- which have some of the strictest dealership laws -- and noted a recent change of heart after Tesla announced plans to build its Gigafactory.

Jackson commented, You want to talk about unintended consequences ... You pick a fight with Tesla. Now they build a big battery factory. What are you going to do?

New Jersey is currently looking at allowing temporary permit for Tesla -- allowing direct sales until it hits a 4 percent of all auto sales threshold. That bill is likely to pass, according to most market sentiment. Last Friday, New York Governor Andrew Cuomo and Tesla struck a deal for Tesla to keep operating its five locations in the state, but won't be allowed to expand.

Shares of Tesla are down 2.2 percent Monday.

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