Wiki New Bills Introduced to End Bans on Tesla’s Direct-Sales Model

As new legislative sessions begin to ramp up in states across the country, Tesla is pushing to make its direct-sales business model legal in states it’s still restricted.

There are seven states that currently ban Tesla’s business model or restrict its number of stores and service centers that could soon change their laws.

TMC Member Pluto went through all the states where Tesla has restrictions and the and found the following bills introduced:



Connecticut – HB 5285

Nebraska – LB 51

New Mexico – SB 243

Oklahoma – SB 790

South Carolina – S 379

West Virginia – HB 2219



Pluto noted: “Many states seemed to not have started their legislative sessions or introduced all their bills yet so I’ll have to check for more later. Interestingly, Texas appears to be almost done introducing bills and I found nothing there.”

 

[RobStark]

Tesla hopes revived Texas fight will open door to dealerless car sales

 

[Prunesquallor]

That process you describe is what happens in Texas.

In Texas, Tesla calls their locations "Galleries" not stores.

Until recently, Tesla could not even open the door to a "gallery" in Utah.

The process I used in Texas (Houston) was a little different:

1) Go to Tesla Gallery, get questions answered, take a test drive (by appointment).
2) Put down deposit on vehicle configuration you want on-line. Gallery will search inventory to match vehicle you want (if available).
3) Securing financing is buyer's responsibility
4) Tesla sends paperwork, Tesla Sales Assistant (Las Vegas) in contact by phone and e-mail. Gallery has (evidently) coordinated inventory car with Tesla Sales Assistant. VIN and process tracked through on-line Tesla account.
5) Return paperwork. Final coordination of payment with Tesla Sales Assistant.
6) Tesla Sales Assistant coordinates initial delivery date
7) Local Sevice Center coordinates final delivery and handles inspection and application for title and license (paperwork FedEx to owner).
8) Local Service Center offers to buy old car

 

[mberta74]

Hey guys, an update. I've been working with the moderators to allow me to edit/update the first post and they've made it a WikiPost to enable this. Unfortunately I still don't see an edit button there (even though I see one on other WikiPosts) and am waiting on further assistance. In the meantime, I've been working on researching laws state-by-state for each of the white states and so here's the latest version of the map:
View media item 117877Legal Sources:

• Alabama - Automakers cannot direct sell
• Alaska - Automakers can direct sell *
• Hawaii - Automakers can direct sell
• Idaho - Automakers can direct sell *
• Iowa - Automakers cannot direct sell
• Kentucky - Automakers cannot direct sell
• Michigan - Automakers cannot direct sell or service
• Mississippi - Automakers can direct sell
• Nevada - Automakers besides Tesla cannot direct sell
• New Mexico - Automakers cannot direct sell or service
• South Carolina - Automakers cannot direct sell or service
• Texas - Automakers cannot direct sell
• Vermont - Automakers can direct sell
• West Virginia - Automakers cannot direct sell

* Further verified by calling the state's DMV or DOT since there were no legal statutes allowing or preventing automakers to sell directly to customers.


Good eye!

 

[mberta74]

Even funnier..... I heard the guy that wrote the legislation in Michigan barring the possibility of Tesla opening a store or service center in Michigan, is our new governors husband...

I wonder what the consideration will be now

 

[Pluto]

I'm checking every weekend for yellow and orange states but it looks like there haven't been any new bills introduced since my last update (I tried checking daily and it was way too much work). It looks like Wisconsin and Michigan slowly introduce most of the year bills. However I don't expect to see a direct sales bill in Michigan since I don't believe there has been one in recent years (due to Tesla's lawsuit challenging the ban a few years ago). In Texas 2,800 bills have been introduced so far compared to 10,700 in 2017 and in New York 9,400 bills have been introduced compared to 30,300 in 2017. In Alabama the session begins in March while in Louisiana it begins in April. In North Carolina they just began introducing bills.

It looks like the rest are proceeding normally.

 

[anonim1979]

...

Thread on Reddit:
I hope at least one US state per year allows Tesla to sell cars, so I can continue to update this list.
OP is maintaining Wikipedia page Tesla US dealership disputes - Wikipedia
Maybe this map could be posted on that page?

 

[Prunesquallor]

Received this 15 February:

You’re invited to our Tesla Capitol Visit on March 6, 2019.

Join us at the Texas State Capitol for the opportunity to meet with legislators throughout the day and voice your support for Tesla in Texas. We hope you can stop by the Austin Club for a legislative breakfast to discuss the day’s event.

If you are interested in attending, kindly RSVP.

 

[Pluto]

New Jersey introduced a bill this week phasing in an increase of the limit imposed on Tesla from 4 stores to 14 over the next 5 years. S 3493 - New Jersey Senate (218) - Open States

 

[Pluto]

Here's a roundup of any recent news I could find regarding direct sales bills...

Multiple states:

• Tesla launches new multi-state effort against direct-sales ban
• New Bills Introduced to End Bans on Tesla's Direct-Sales Model - Tesla Motors Club

New Jersey:

• Bill would boost electric carmaker’s footprint in NJ - NJBIZ
• Car dealers voice opposition to Tesla deal - NJBIZ
• Bill could help Tesla expand number of dealerships in N.J. - ROI-NJ

New Mexico:

• ‘Tesla bill’ would allow electric carmakers to sell in N.M.
• Tesla direct sales in New Mexico gains ground as "Tesla Bill" gets approved
• Tesla backed bill advances to next committee
• Senate panel passes bill that Tesla is pushing

Connecticut:

• New governor and legislature, same Tesla bill

 

[ggnykk]

I haven't seen a map continuously updated with the states that Tesla can or can't direct sell in, so I decided to create my own with information I’ve found. It highlights all states where direct sales is banned and all states where Tesla has an exception in. (Here is a Wikipedia article to also reference.)

2019 Legislation in Progress:

• Connecticut - HB 5285 (EV Automakers can direct sell)
• Nebraska - LB 51 (Automakers can direct sell)
• New Jersey - S 3493 (Limit increased for Tesla)
• New Mexico - SB 243 (Automakers can direct sell and service)
• Oklahoma - SB 790 (Automakers can direct sell)
• South Carolina - S 379 (EV Automakers can direct sell [or service at the same location])
• West Virginia - HB 2219 (Tesla can direct sell)

Latest Updates:

• April 2018
  • Connecticut - Automakers still cannot direct sell
  • Nebraska - Automakers still cannot direct sell
• March 2018
  • New Mexico - Automakers still cannot direct sell or service
  • Utah - US automakers can direct sell non-fossil fuel vehicles
  • Wisconsin - Automakers still cannot direct sell
• February 2018
  • Oklahoma - Automakers still cannot direct sell
• January 2018
  • New York - Limit for Tesla remains unchanged
  • Rhode Island - Automakers can direct sell
• December 2017
  • Missouri - Automakers still can direct sell
• August 2017
  • Virginia - Limit increased for Tesla
• July 2017
  • Wyoming - Automakers can direct sell
• June 2017
  • North Carolina - Limit for Tesla remains unchanged
  • Arizona - Automakers can direct sell
• May 2017
  • Texas - Automakers still cannot direct sell
  • Indiana - Automakers besides Tesla cannot direct sell
• August 2016
  • Alabama - Automakers still cannot direct sell
• October 2015
  • Maryland - Limit imposed on automakers
• June 2015
  • Georgia - Limit increased for Tesla
• April 2015
  • West Virginia - Automakers cannot direct sell
• March 2015
  • New Jersey - Limit imposed on Tesla, other automakers cannot direct sell
• October 2014
  • Michigan - Automakers cannot direct sell or service
• September 2014
  • Nevada - Automakers besides Tesla cannot direct sell
  • Massachusetts - Automakers can direct sell
  • Ohio - Limit imposed on Tesla, other automakers cannot direct sell
• July 2014
  • Pennsylvania - Limit imposed on Tesla, other automakers cannot direct sell
• April 2014
  • Washington - Automakers besides Tesla cannot direct sell or service
• June 2013
  • New Hampshire - Automakers can direct sell

Legal Sources:

1. Alabama - Automakers cannot direct sell
2. Alaska - Automakers can direct sell *
3. Arizona - Automakers can direct sell
4. Arkansas - Automakers cannot direct sell
5. California - Automakers can direct sell
6. Colorado - Automakers can direct sell
7. Connecticut - Automakers cannot direct sell
8. Delaware - Automakers can direct sell *
9. Florida - Automakers can direct sell
10. Georgia - Automakers can direct sell 150 units per year, Tesla can sell at five locations
11. Hawaii - Automakers can direct sell
12. Idaho - Automakers can direct sell *
13. Illinois - Automakers can direct sell
14. Indiana - Automakers besides Tesla cannot direct sell
15. Iowa - Automakers cannot direct sell
16. Kansas - Automakers cannot direct sell
17. Kentucky - Automakers cannot direct sell
18. Louisiana - Automakers cannot direct sell
19. Maine - Automakers can direct sell
20. Maryland - Automakers can direct sell non-fossil fuel vehicles at four locations
21. Massachusetts Automakers can direct sell
22. Michigan - Automakers cannot direct sell or service
23. Minnesota - Automakers can direct sell
24. Mississippi - Automakers can direct sell
25. Missouri - Automakers can direct sell
26. Montana - Automakers cannot direct sell
27. Nebraska - Automakers cannot direct sell
28. Nevada - Automakers besides Tesla cannot direct sell
29. New Hampshire - Automakers can direct sell
30. New Jersey - Automakers cannot direct sell, Tesla can sell at four locations
31. New Mexico - Automakers cannot direct sell or service
32. New York - Automakers cannot direct sell, Tesla can sell at five locations
33. North Carolina - Automakers are limited in direct selling
34. North Dakota - Automakers cannot direct sell
35. Ohio - Automakers cannot direct sell, Tesla can sell at three locations
36. Oklahoma - Automakers cannot direct sell
37. Oregon - Automakers can direct sell
38. Pennsylvania - Automakers cannot direct sell, Tesla can sell at five locations **
39. Rhode Island - Automakers can direct sell
40. South Carolina - Automakers cannot direct sell or service
41. South Dakota - Automakers cannot direct sell
42. Tennessee - Automakers can direct sell
43. Texas - Automakers cannot direct sell
44. Utah - US automakers can direct sell non-fossil fuel vehicles **
45. Vermont - Automakers can direct sell
46. Virginia - Automakers are limited in direct selling
47. Washington - Automakers besides Tesla cannot direct sell or service
48. West Virginia - Automakers cannot direct sell
49. Wisconsin - Automakers cannot direct sell
50. Wyoming - Automakers can direct sell

* Further verified by calling the state's DMV or DOT since there were no legal statutes allowing or preventing automakers to sell directly to customers.
** Pending Justia addition of latest laws

Notes: There may be a few states with inaccurate information but I'm updating this as often as possible. I have this map saved in PDN with multiple layers so it can be losslessly updated. Message me if you want the source file. Anyone may redistribute the image or modify it in any way. It is optional to give credit for creating the image, and in doing so you may cite "Pluto" or "Pluto is a Planet" but no one else. The best way to contact me is through Telegram though I check the forums regularly.

For states that are in orange (automakers cannot direct sales to customer), the public can still order Tesla online and pick up the car at a Tesla delivery center or service center, right?

 

[Prunesquallor]

For states that are in orange (automakers cannot direct sales to customer), the public can still order Tesla online and pick up the car at a Tesla delivery center or service center, right?

In Texas at least, yes you purchase online (essentially buying the car from California) and it is shipped from either the factory or wherever it resides in inventory to a Service Center/Delivery Center. Depending on your distance from that, they can deliver it to you, or you go pick it up.

 

[ggnykk]

In Texas at least, yes you purchase online (essentially buying the car from California) and it is shipped from either the factory or wherever it resides in inventory to a Service Center/Delivery Center. Depending on your distance from that, they can deliver it to you, or you go pick it up.

I see. So all these "sales ban" in so many states essentially means nothing then. It is not like customer couldn't buy the car at all.

 

[Prunesquallor]

I see. So all these "sales ban" in so many states essentially means nothing then. It is not like customer couldn't buy the car at all.

I can only speak for Texas. It was a smooth operation for me. You DO need to arrange your own financing. But, it appears (so far) the states can’t ban internet sales of cars as long as it is from out of state. And Tesla has moved to that model for everyone, it seems.

Edit: You will pay YOUR state’s sales tax.

 

[Pluto]

Fyi, just a clarification that the recent Electrek article here is inaccurate: https://electrek.co/2019/03/16/tesla-service-ban-texas/

I've been tracking Texas' new bills and it appears that bill is one of two attempts by a first-stage manufacturer to be able to directly sell medium/heavy duty trucks (GVWR of 16k+ lbs) completed by the second stage manufacturer to consumers. The other bill (filed just two days before it) makes it clear what the intent is: Texas Legislature Online - 86(R) History for HB 2602

There is no provision in that bill preventing manufacturers to service vehicles, it only creates a new exception for selling and tries further clarifying what a dealership is (which is unnecessary since it's already defined at §2301.002(8), see below). For comparison, §2301.252 is what limits selling new vehicles to franchised dealerships and §2301.476 is what prevents manufacturers from owning a dealership.

Current Texas law: 2017 Texas Statutes :: OCCUPATIONS CODE :: TITLE 14 - REGULATION OF MOTOR VEHICLES AND TRANSPORTATION :: SUBTITLE A - REGULATIONS RELATED TO MOTOR VEHICLES :: CHAPTER 2301 - SALE OR LEASE OF MOTOR VEHICLES

 

[TexasEV]

Fyi, just a clarification that the recent Electrek article here is inaccurate: https://electrek.co/2019/03/16/tesla-service-ban-texas/

I've been tracking Texas' new bills and it appears that bill is one of two attempts by a first-stage manufacturer to be able to directly sell medium/heavy duty trucks (GVWR of 16k+ lbs) completed by the second stage manufacturer to consumers. The other bill (filed just two days before it) makes it clear what the intent is: Texas Legislature Online - 86(R) History for HB 2602

There is no provision in that bill preventing manufacturers to service vehicles, it only creates a new exception for selling and tries further clarifying what a dealership is (which is unnecessary since it's already defined at §2301.002(8), see below). For comparison, §2301.252 is what limits selling new vehicles to franchised dealerships and §2301.476 is what prevents manufacturers from owning a dealership.

Current Texas law: 2017 Texas Statutes :: OCCUPATIONS CODE :: TITLE 14 - REGULATION OF MOTOR VEHICLES AND TRANSPORTATION :: SUBTITLE A - REGULATIONS RELATED TO MOTOR VEHICLES :: CHAPTER 2301 - SALE OR LEASE OF MOTOR VEHICLES

No the bill discussed in the Electrek article (and extensively in several threads here) has nothing to do with heavy trucks. It’s primary purpose is to make Warren Buffett’s auto dealerships in Texas legal. TADA is using it as a vehicle (pun intended) to make trouble for Tesla.

 

[Prunesquallor]

Fyi, just a clarification that the recent Electrek article here is inaccurate: https://electrek.co/2019/03/16/tesla-service-ban-texas/

I've been tracking Texas' new bills and it appears that bill is one of two attempts by a first-stage manufacturer to be able to directly sell medium/heavy duty trucks (GVWR of 16k+ lbs) completed by the second stage manufacturer to consumers. The other bill (filed just two days before it) makes it clear what the intent is: Texas Legislature Online - 86(R) History for HB 2602

There is no provision in that bill preventing manufacturers to service vehicles, it only creates a new exception for selling and tries further clarifying what a dealership is (which is unnecessary since it's already defined at §2301.002(8), see below). For comparison, §2301.252 is what limits selling new vehicles to franchised dealerships and §2301.476 is what prevents manufacturers from owning a dealership.

Current Texas law: 2017 Texas Statutes :: OCCUPATIONS CODE :: TITLE 14 - REGULATION OF MOTOR VEHICLES AND TRANSPORTATION :: SUBTITLE A - REGULATIONS RELATED TO MOTOR VEHICLES :: CHAPTER 2301 - SALE OR LEASE OF MOTOR VEHICLES

There was indeed problematic language added that was completely separate from the Berkshire Hathaway loophole. It’s probably impossible to know what the true intent was but it was widely interpreted as opening the door for the Texas Dealerships to sue Tesla and force the shutdown of service centers. This is pretty much validated because after a large e-mail, phone and twitter campaign by Tesla owners, the language was removed, and none of the RV interests seemed to care.

So as far as the map is concerned, my interpretation is we kept Texas orange.

 

[RobStark]

Direct-sales bill for EVs defeated in Colo.

It says vehicle manufactures that don't have any franchised dealers are limited to a single dealer's license in Colorado.

 

[neroden]

I'm hearing that Nebraska dealership interests are preventing a service center from being opened in Nebraska... any legal insight on this?

Tesla proceeded to open a service center in Council Bluffs.

 

[Prunesquallor]

I'm hearing that Nebraska dealership interests are preventing a service center from being opened in Nebraska... any legal insight on this?

Tesla proceeded to open a service center in Council Bluffs.

It depends upon how "dealership" is defined/interpreted in Nebraska. That was the problematic part of the proposed changes in Texas - it appeared that "servicing" was being appended to the functions of a "dealership". It was feared that this would prohibit auto manufacturers from running service centers (we got the language removed). Maybe that’s what happened in Nebraska.

 

[RobStark]

Looks like Total Victory in Wisconsin.

Wisconsin passes budget after Tesla proviso woos key senator