Breaking News: Pro-Tesla Motors bill dies in Texas House (Austin Business Journal)

[twinklejet]

May 24, 2013, 1:53pm CDT
Link: http://www.bizjournals.com/austin/b...3/05/pro-tesla-motors-bill-dies-in-texas.html

by James JeffreyContributing Writer-Austin Business Journal

Pro-Tesla Motors bill dies in Texas House

Lawmakers have sided with dealers’ interests over those of Tesla Motors Inc. in the debate over whether manufacturers of electric- or all battery-powered vehicles should be able to sell directly to customers.

House Bill 3351, authored by State Rep.Eddie Rodriguez, D-Austin, had proposed changing Texas law that mandates vehicles be sold to customers through dealerships. But stiff opposition from groups such as the Texas Automobile Dealers Association trumped the argument of Tesla CEO Elon Musk and supporters of the bill.

Despite a spirited effort on the part of Musk, who visited the Capitol multiple times to support the bill, it failed to even be heard on the House floor.

“For many, this was a new concept this session, so we had a lot of educating to do,” Rodriguez said. “We have now built a coalition, and I look forward to building consensus during the interim.”

Musk may derive some consolation from the Senate passing two bills — HB 2623 and HB 1791 — that would help his company Space Exploration Technologies Corp., better known as SpaceX, establish the world’s first commercial orbital launch site in Texas.

But the Tesla Motors bill, which Musk said was “life or death ” for his company in Texas, wasn’t to be this session.

“We’ll try again in 2015,” Rodriguez said.

 

[stephenpace]

Next time we'll bring 100 cars to the Capitol. And the time after that, we'll bring 1000.

 

[widodh]

It still sounds so stupid to me. It's a free world with free economics, but then somehow a stupid law like this prevents you from selling your products?

 

[Adm]

It still sounds so stupid to me. It's a free world with free economics, but then somehow a stupid law like this prevents you from selling your products?

Don't underestimate the economics of election campaign contributions and other ehmm agreements.

 

[widodh]

Don't underestimate the economics of election campaign contributions and other ehmm agreements.

It's obvious that bigger powers are involved here.

The point I wanted to make is that a lot of US politicians use the term "the land of the free" while they are trying to protect the interests of their supporters. A law like this underlines that again. It sounds like pure protectionism to me.

Tesla has my vote (for what it's worth ) and I really do hope they will be able to sell their cars in Texas through some other channel, but please, do avoid those dealerships.

 

[CyberDutchie]

Elon, please do not even think about building a future Tesla factory in Texas. Avoid Texas as the plague, they are not worth your investment. So much for free enterprise...protectionism and cronyism is what that state is all about.

 

[Al Sherman]

Unfortunately you can follow the money. The Texas politicians who let the bill die are bought and paid for. It'll be an uphill grind. My father in law was the chairman (for many years) of a large corporation based in our small town. He was asked repeatedly over the years to run for mayor. He always responded the same way. "Why would I want to be the Mayor? When I can be the guy that tells the Mayor what to do?"

 

[medved]

Another nail in the coffin of the freedom in America.

 

[ggies07]

This makes me so mad. I hate this state so much. This needs to be remembered come the next presidential election when all those republians are saying how much they love this nation because of its freedoms. Ridiculous.

 

[ItsNotAboutTheMoney]

This makes me so mad. I hate this state so much. This needs to be remembered come the next presidential election when all those republians are saying how much they love this nation because of its freedoms. Ridiculous.

And people wonder why many young people are enthusiastic Ron Paul supporters. This is precisely the kind of bull that people are sick of. They didn't allow it on the floor because it would have forced politicians to vote and nobody with any ambition would want that on their record.

 

[brianman]

It's a free world with free economics

Heh, no it's not. And this is only a small counter-example to that assertion.

 

[dsm363]

Elon should pick a different state for the space port. Losing a few hundred million dollar space port might provide a lesson.

 

[Kaivball]

It still sounds so stupid to me. It's a free world with free economics, but then somehow a stupid law like this prevents you from selling your products?

Yup.

This should not be the government place to decide how a free consumer wants to buy a car.

The definition of the free market is a voluntary transaction between a buyer and a seller each of free will and devoid of third party direct or implied coercion or encumbrance.

I guess TX does not support the free market...

 

[Kaivball]

This makes me so mad. I hate this state so much. This needs to be remembered come the next presidential election when all those republians are saying how much they love this nation because of its freedoms. Ridiculous.

At least they let you pump your own gas there unlike OR or NJ...



In terms of overall economic freedom TX still leads the pack, especially in comparison to near socialistic Kalifornia...

 

[Doug_G]

The point I wanted to make is that a lot of US politicians use the term "the land of the free" while they are trying to protect the interests of their supporters. A law like this underlines that again. It sounds like pure protectionism to me.

I think it is terribly ironic every time someone in the USA claims it to be the "land of the free" or the "last bastion of freedom".

 

[Jonathan Hewitt]

Elon should pick a different state for the space port. Losing a few hundred million dollar space port might provide a lesson.

I wholeheartedly concur. I don't know where else would be a good spot considering the closer to the equator the better but I agree nonetheless.

 

[dsm363]

I wholeheartedly concur. I don't know where else would be a good spot considering the closer to the equator the better but I agree nonetheless.

I think he mentioned Georgia and Nevada and maybe Alabama as other options during his house testimony but would have to go back and watch it. Don't know how serious those options are or if he was just using them to let the legislators know they could go elsewhere if they didn't pass the Tesla bill.

 

[Jonathan Hewitt]

I think he mentioned Georgia and Nevada and maybe Alabama as other options during his house testimony but would have to go back and watch it. Don't know how serious those options are or if he was just using them to let the legislators know they could go elsewhere if they didn't pass the Tesla bill.

Oh my, I would apply to spacex yesterday if they put the spaceport in Georgia. I don't know if they would take me, but I do have an BS in Astronautical Engineering, haha. Hopefully they choose any of those states as Texas doesn't want Musk's business. Thanks for the info!

 

[Krugerrand]

Elon should pick a different state for the space port. Losing a few hundred million dollar space port might provide a lesson.

Okay, I understand your (and other's) reaction; it was my initial reaction too. The problem with thinking (and feeling) that the above should be the outcome based on what happened with the 'Tesla' bill is EXACTLY what so many are accusing the auto dealers and politicians of doing.

Auto Dealer: Hey, Mr. Politician, if you'll prevent this bill from getting to the floor I'll give you X number of dollars for your next campaign, otherwise I'll support your competition and you can kiss your next term goodbye.

Mr. Musk: Hey, Texas, if you make sure this bill gets passed for Tesla, I'll build a SpaceX launch pad in your backyard, otherwise I'll take my toys and go play in another sandbox.

It's the exact same thing. You can't despise it and be against it when it doesn't suit your purpose and then be for it when it does. Well, you can, but then can we say hypocrite?

I want people in every state, province and country in the world to be able to easily buy directly from Tesla as much as the next person. But let's at least take the high road and show some integrity. SpaceX should build their launch pad in the most advantageous location to SpaceX and if that's Texas, then so be it. The days of free reign are counting down for *those* auto dealers. They know it, that's why they are fighting so darn hard. We only need to fight a bit harder.

 

[youlikeadajuice]

Okay, I understand your (and other's) reaction; it was my initial reaction too. The problem with thinking (and feeling) that the above should be the outcome based on what happened with the 'Tesla' bill is EXACTLY what so many are accusing the auto dealers and politicians of doing.

Auto Dealer: Hey, Mr. Politician, if you'll prevent this bill from getting to the floor I'll give you X number of dollars for your next campaign, otherwise I'll support your competition and you can kiss your next term goodbye.

Mr. Musk: Hey, Texas, if you make sure this bill gets passed for Tesla, I'll build a SpaceX launch pad in your backyard, otherwise I'll take my toys and go play in another sandbox.

It's the exact same thing. You can't despise it and be against it when it doesn't suit your purpose and then be for it when it does. Well, you can, but then can we say hypocrite?

I want people in every state, province and country in the world to be able to easily buy directly from Tesla as much as the next person. But let's at least take the high road and show some integrity. SpaceX should build their launch pad in the most advantageous location to SpaceX and if that's Texas, then so be it. The days of free reign are counting down for *those* auto dealers. They know it, that's why they are fighting so darn hard. We only need to fight a bit harder.

I had the same thought, but after thinking about it more, I don't think they're exactly the same thing. The dealers are trying to block Tesla for their own good, not the good of Texans. So it's a selfish power play. Elon can take SpaceX anywhere he wants and it will be good for whatever state it ends up in, he was using it as an incentive for the state of Texas. It's not going to affect SpaceX much no matter where he puts it, but it would be good for Texans if it were there. I agree they follow a similar line, but one option is clearly very selfish, while the other is a simple bargaining tool. I dont know, maybe I'm talking crazy...