theintercept.com
It is a statute. Look it up. I think someone has posted a link to it in the past. There have been repeated requests for anyone to provide the legal basis of this claim of a vehicle having to leave the state before being delivered.
1) own an interest in a franchised or nonfranchised dealer or dealership;(2) operate or control a franchised or nonfranchised dealer or dealership; or(3) act in the capacity of a franchised or nonfranchised dealer. (Tex. Occ. Code Ann. § 2301.476) and "A motor vehicle shall not be advertised for sale in any manner that creates the impression that it is being offered for sale by the manufacturer or distributor of the vehicle. An advertisement shall not contain terms such as “factory sale,” “fleet prices,” “wholesale prices,” “factory approved,” “factory sponsored,” “manufacturer sale,” use a manufacturer's name or abbreviation in any manner calculated or likely to create an impression that the vehicle is being offered for sale by the manufacturer or distributor, or use any other similar terms which indicate sales other than retail sales from the dealer" (43 Tex. Admin. Code § 215.261).
Yeah, and wouldn't the former put the onus on the ~150,000 gas station in the US to immediately change their billing processes / systems. As an IT consultant to business, you can't count the number of headaches and mistakes that would result in. Not saying it's a bad idea, just that's it's not "easy".
www.teslarati.com
teslamotorsclub.com
I wrote for Seeking Alpha very briefly a few years ago.
Click the Spoiler in my above post for detail on this.
Tesla has tried that. It's basically a non-starter because the Dealer Association not only provides campaign contributions, but a couple of legislators are dealers. No legislator is willing to give up the campaign contributions.I still think this is Tesla's ace-in-the-hole for Texas sales: (Feb 27, 2021)
Tesla applies for Giga Texas to be a foreign trade zone
Tesla is seeking to have its Giga Texas production facility recognized as a foreign trade zone for tax reasons. If approved by Travis County, Texas commissioners and the Federal Trade Zones Board, Tesla will save $270,000 per year in all jurisdictions. The request from Tesla was discussed during...
It would be better if Texas just changed the law (2 years to next legis. session?). Or at least provide an Executive Order allowing direct sales.
Last legislative session, proposed changes would simply have exempted EVs from this law. The amendment never progressed very far because too many idiotic things had precedent and time ran out. But they obviously felt a substantial change was necessary, rather than just a redefinition of where the sales transaction occurred.It is a statute. Look it up. I think someone has posted a link to it in the past. There have been repeated requests for anyone to provide the legal basis of this claim of a vehicle having to leave the state before being delivered.
The wording of the statute I read seemed reasonably clear about what is and is not allowed. I don't recall any mention of any restriction being put upon the manufacturer in any regard other than advertising, sales, pricing, etc. by a manufacturer cannot happen at a store owned by the manufacturer.
It was written to prevent OEMs from establishing sales outlets of their own that would compete directly with dealerships.
Every instance of people saying that a vehicle manufactured in Texas, sold in California (server location?), must physically leave the state and return to be delivered to a Texas owner either have made a half-hearted attempt at understanding the law (based upon hearsay), and/or are examples of people spreading baseless FUD.
Nearly all statutes are created to regulate some aspect of commerce. Many statutes are fleshed out by special interests looking to protect their golden goose. It would be unlikely that a statute regulating energy would have any bearing upon the special interest group who came up with the statute regulating automobile sales. In other words, the example offered is a non sequitor.
Found this Wiki Reference
Begin Wiki copy (my bold, underline, and italics for emphasis)
Texas
Texas law states "Except as provided by this section, a manufacturer or distributor may not directly or indirectly
These laws make it illegal to buy a car from Tesla in person, at a Tesla Gallery. Thus, all Texas orders are taken via the internet or over the phone. Texas residents can still easily buy a car from Tesla, but the purchase is handled as an out-of-state transaction and must be completed before the vehicle ships to Texas. Tesla recently added the ability to include tax, title, license, and registration in the sale price of the car so the purchaser doesn't have to pay that separately once they receive the vehicle. In 2015, Tesla lobbied the Texas Legislature to modify the law[59] to allow Tesla to sell directly to consumers, and specifically allow Tesla employees to discuss "financing, leasing, or purchasing options" at the firm's existing galleries in Austin, Dallas, and Houston.[60] Texas considered legislation in 2015 to allow Tesla to operate in the state[61] but legislation was not passed.[62]
As of 2016, most of the GOP delegates support direct sales while Governor Abbott prefers the current system. According to Texans for Public Justice, Tesla spent $1.3m on lobbyists while dealerships spent $1m.[63]Tesla US dealership disputes - Wikipedia
End Wiki Copy
In the above "ships to Texas" is mentioned in the description. This seems to be there only because the cars weren't being built in Texas, not because of the statute itself. Now the description could be changed to read "before the vehicle ships" and be as valid, based upon reading the stipulations restricting direct sales by manufacturers in (43 Tex. Admin. Code § 215.261) which makes no specific mention of the physical location of the vehicle.
Though a good idea, done in New Mexico already, there is no need. This is only a matter of where the paperwork is processed.
These legal arguments are getting very abstract. Let’s say I have preorder and have submitted a deposit on a vehicle that has yet to be manufactured. Where is this vehicle “located” at the time of sale? Edit: Knightshade answered this, thanks.
www.cnbc.com
Tesla FAQ on ordering said:
Doug has always been more than fair to Tesla with his reviews. Watch his review of the Model S Plaid. He is NOT being paid by “interested” parties...he is as fair as you could get from a YouTube. You might not like his style, but he likes Tesla.
This is a good idea. Well, it is an amazing idea. Because the grid would get greener and the follow on savings from the reliability would add to the economy.
