Tesla Texas Bills

[tander]

I've been trying to follow how things are going with the Texas bills for Tesla to workaround dealership laws. Tesla Motors Inc. : Poll From Austin Business Journal Shows Overwhelming Public Support for Tesla Motors Selling Electric Cars Direct to Consumers in Texas It seems like Tesla doesn't have much of a chance going up against the big auto lobbyists, but if the above poll bears any credence maybe they have more of a chance than it seems. Either way, I thought it would be good to start a thread.

 

[60TTuC]

Twitter / elonmusk: Texas House Committee just ...

 

[bonnie]

You'll find a couple of threads already discussing over in the regional section of the forum - Mountain/Southwest

 

[Cattledog]

Awesome!

 

[blakegallagher]

Read an article today that said in order to "give it a chance" in the house they changed it to read that if Tesla sells 5k units in Texas they have to move to a dealership model. ...If it does pass this way I am really hoping before Tesla gets to 5k units they amend the law to function as it should. Tesla does not endanger any dealership model because they have given out no Franchises .... I can not believe this is even an argument for people in the Texas House or Senate.

 

[neroden]

Read an article today that said in order to "give it a chance" in the house they changed it to read that if Tesla sells 5k units in Texas they have to move to a dealership model.

I think that's no good for Tesla, because I believe the trigger provisions in the franchised dealer laws of several other states are triggered by having *any* franchised dealers *anywhere*.

I suppose Tesla could simply set up a cutoff -- after 5000 Texas sales/reservations, that's it, no more purchases from Texans!

 

[Robert.Boston]

I think that's no good for Tesla, because I believe the trigger provisions in the franchised dealer laws of several other states are triggered by having *any* franchised dealers *anywhere*.

I suppose Tesla could simply set up a cutoff -- after 5000 Texas sales/reservations, that's it, no more purchases from Texans!

The MA bill only talks about in-state franchise dealerships, so this could work. Half a loaf is better than none, and a 5k annual cap shouldn't bite until GenIII is released. By that time, people will have gotten used to the idea that it's okay to buy direct from the manufacturer, and Elon will be able to dangle the carrot of building a second manufacturing facility in Texas (but only if the 5k limit is removed).

 

[dsm363]

The MA bill only talks about in-state franchise dealerships, so this could work. Half a loaf is better than none, and a 5k annual cap shouldn't bite until GenIII is released. By that time, people will have gotten used to the idea that it's okay to buy direct from the manufacturer, and Elon will be able to dangle the carrot of building a second manufacturing facility in Texas (but only if the 5k limit is removed).

Would Tesla really ever need to expand outside the Fremont facility for the next decade or two? I believe it is capable of producing up to 500,000 vehicles per year (at least as a NUMMI plant).

 

[Robert.Boston]

Need to? No. It might make sense if it could reduce shipping costs, though, but in that case plant #2 should be in the EU or Asia, not Texas.

 

[jeff_adams]

Would Tesla really ever need to expand outside the Fremont facility for the next decade or two? I believe it is capable of producing up to 500,000 vehicles per year (at least as a NUMMI plant).

I've seen that number thrown around, but we tend to forget that Tesla manufactures many of the parts in house. That takes up space and may take up more in the future with multiple models being produced