Texas dealerships can breathe a sigh of relief after lawmakers rejected a proposed law that would have allowed Tesla to open dealerships across the state. The luxury electric carmaker was pushing lawmakers to reverse a state law that forbids manufacturers from directly selling to consumers. The bill did not get approval during the recent legislative session. House Bill 3351 would have allowed car manufacturers to sell up to 5,000 vehicles per year at the manufacturer's dealership. According to StateImpact Texas, Tesla CEO Elon Musk believes the company could sell 1,500 to 2,000 vehicles a year in Texas. Musk has been adamant that the luxury brand needs to be directly available to consumers and not be forced into a franchise system. "We'd be at the back of the bus," he testified at a hearing earlier this year. "It's a matter of life or death." Tesla owns two showrooms in the state that aim to introduce consumers to their models, but they stop short of selling vehicles. StateImpact points out that you can't drive one or find out how much one of the vehicle costs at those locations, which are located in malls. Tesla has been aggressive in trying to get similar legislation passed in other states. The company won court decisions in Massachusetts and New York and got legislation passed in Minnesota, according to Automotive News. But it hasn't been as lucky in states like Virginia or Texas. The Texas Automobile Dealers Association, which opposed the legislation, told CNN that lawmakers made the right decision by not allowing the direct selling. "Franchise laws give dealers the opportunity to have a much wider presence in the country, and they give consumers a better opportunity for purchase and service of their vehicles," Bill Wolters, president of the Texas Automobile Dealers Association, told CNN. http://www.chron.com/cars/article/T...ve-Tesla-dealerships-4579344.php?cmpid=hpfsln
It seems so un-Texan to not allow businesses to do whatever the **** they want. But, whatever, I don't really care about Tesla.
Every time they sell a car it costs taxpayers thousands of dollars. If they would unsubsidize them, I would have no problem with them being in the state.
So you were for outlawing every Hyrbid car in the state of Texas, since every one of them have at some point qualified for the same tax credits...
Would somebody please tell me why this company has to get approval from the State to invest in properties in order to set up dealerships to sell their cars? Why can't they just buy the land, build the dealerships, and sell to their heart's content?
Are they still subsidized by the state? Because every state that sells Tesla has to pay out the wazoo. So every time a Texan would buy one, the state would have to pay Tesla too. I'm not cool with paying a company for someone else to drive it.
Other states are doing the same (e.g., N. Carolina). Dealerships are a constant source of bribes^H^H^H^H^H campaign donations.
For a supposed Red state, this is total BS. Just goes to show you there's really no left/right or red/blue. It's all about green.
A bad law, but Tesla's entire business model is built around subsidies and credits and guaranteed loans from the government, so I have little sympathy for them complaining about unfair laws.
Please tell me where the states are required to pay Tesla anything. Some state offer tax credits, but they aren't mandatory.
That $7,500 is a federal credit (and not received by Tesla, but rather the buyer). Chevy Volt qualifies for the exact same credit.
I hate car shopping and dealing with the six hours of bamboo shoots under my fingernails during the process so much that this thread is getting me pissed off and I'm not even in the market for a car anytime soon. F YOU CAR DEALERS!!!!
right but it allows them to charge more for a vehicle people wouldn't purchase at that price without the credit
I agree with you that essentially the credit goes to Tesla. But as said above, that goes for the Nissan Leaf, Chevy Volt, etc too. Should those specific cars be banned from dealerships? And we still have oil and gas subsidies. Why not do away with that if there is so much opposition with government involvement?
