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Texas lawmakers won't approve Tesla dealerships

Discussion in 'BBS Hangout' started by da1, Jun 7, 2013.

  1. da1

    da1 Member

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    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
     
  2. JuanValdez

    JuanValdez Contributing Member

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    It seems so un-Texan to not allow businesses to do whatever the **** they want. But, whatever, I don't really care about Tesla.
     
  3. Raven

    Raven Member

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    Democracy, hahahahahahahahaha.
     
  4. Baqui99

    Baqui99 Contributing Member

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    Almost as ridiculous as the laws that don't allow dealerships to be open on both Sat & Sun.
     
  5. juicystream

    juicystream Contributing Member

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    Free Market, FTW
     
  6. bobmarley

    bobmarley Contributing Member

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    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.
     
    #6 bobmarley, Jun 7, 2013
    Last edited: Jun 7, 2013
  7. juicystream

    juicystream Contributing Member

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    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...
     
  8. Big MAK

    Big MAK Member

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    What a joke.
     
  9. Johndoe804

    Johndoe804 Member

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    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?
     
  10. bobmarley

    bobmarley Contributing Member

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    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.
     
  11. rhadamanthus

    rhadamanthus Contributing Member

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    Other states are doing the same (e.g., N. Carolina). Dealerships are a constant source of bribes^H^H^H^H^H campaign donations.
     
  12. Yonkers

    Yonkers Contributing Member

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    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.
     
    2 people like this.
  13. Commodore

    Commodore Contributing Member

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    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.
     
  14. juicystream

    juicystream Contributing Member

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    Please tell me where the states are required to pay Tesla anything. Some state offer tax credits, but they aren't mandatory.
     
  15. bobmarley

    bobmarley Contributing Member

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    http://www.forbes.com/sites/patrick...ld-stop-selling-cars-wed-all-save-some-money/
     
  16. juicystream

    juicystream Contributing Member

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  17. boomboom

    boomboom I GOT '99 PROBLEMS

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    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!!!!
     
  18. Commodore

    Commodore Contributing Member

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    right but it allows them to charge more for a vehicle people wouldn't purchase at that price without the credit
     
  19. Yonkers

    Yonkers Contributing Member

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    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?
     
  20. juicystream

    juicystream Contributing Member

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    I bought a Civic Hybrid in 2007. I enjoyed my $2,200 tax credit. Thanks President Bush.
     

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