I don't think Tesla would have taken the deal in Austin without Texas allowing direct sales of vehicles built in Texas
Any state government that prevents Tesla from selling is American Made Products in its state is just wrong. Completely un-American And total BS.
Someone is confused. I don't see the problem. The Texas Automobile Dealers Association said there is no issue for Tesla to sell online and to have that vehicle delivered to Texas consumers in-state. The last paragraph in the article states ... Jennifer Stevens, a spokeswoman for the Texas Automobile Dealers Association, said “Tesla has long used an online model for the sale of their vehicles, and nothing in Texas law prevents a Texas consumer from purchasing a Tesla online and having it delivered to them in the state,” Stevens said in a written statement.
Yes, I saw that one line. It contradicts all the other statements in the article. There really is a law in Texas that prohibits direct sales from auto manufacturers. Up until now, Texans could buy online and have the car shipped in, thus making it an interstate transaction governed by Federal (not State) law. So, if I now buy online, and the transaction is processed in California but the vehicle is made here, does that still make it a "interstate" transaction? Apparently not. So, either Texas needs to change the law, or Tesla needs to jump through the necessary hoops to make in-state sales look like "interstate" sales.
It is not constituents, it is legislators. Several of the key Texas ones are themselves car dealers. this is pretty well covered in other threads.
Have you met Americans? This seems right in line with what the world thinks of us. I can walk to the Fremont factory, but I had to pay the same transportation fee that someone in Australia would pay.
Buy anything from Amazon lately? Did you pay state sales tax? "But wait, that's an interstate sale" right? Seems like this will be something for lawyers to argue over, or hopefully for the legislature to fix. I just wanna pick up my baby right at the factory waaaaaaaaaaaaa
It's not that the sale is an in-state sale, but that the company doesn't have an excuse to avoid the state tax collection. You pay sales tax on Amazon sales because New York won a case against the company. US court rejects Amazon tax appeal New York introduced an "Amazon law" that said online businesses must collect sales tax if they have local affiliates promoting sales, because that counts as having a physical presence in the state. Other states have done the same. It's to reduce unpaid use taxes.
Agreed that the collection of tax is its own specialty of law and commerce, but the concept is the same: since a factory definitely counts as a "physical presence in the state", it will be very difficult to claim an in-state sale as "interstate".
Vehicle sales tax is still paid when you register in TX regardless of where you purchase the car. It’s the TADA and their hooks into the state legislature promoting crony capitalism that’s the hang up. I still don’t understand the reasoning for not allowing direct manufacturers sales... if Ford, GM, Fiat, etc wanted to try the same business model as Tesla, have at it and may the best win.
There has to be a benefit to living in Austin area- we should get “Factory” pick up for our trucks. The lawyer can work the money issues out
I have a relatively low res # for the CT, I was hoping to pick mine up at the factory since it is 10 miles from my house.
For all you Texans, now is the time to get to work on those legislators. You have about a year to get it done...and at least one election cycle. Dan
Anyone pretending this wont be worked out by the time it matters is just looking to stir the pot. Yes it needs to be worked out but that isn't what this thread is about, this is about Texas bashing.
More than likely it has already been worked out behind the scenes prior to Texas’s selection for the giga.
Legislature in Texas meets every two years. Fixing this will take legislative action, and I imagine this stupid law will change with the additional pressure Tesla will bring. We have this law because of the Gulf States Toyota lobby in the first place. I hope Tesla continues to give it to Toyota for this backhanded stranglehold they created by by continuing to drive the prices for Toyota cars into the dirt. Anyone noticed how slow those "hot" looking new plastic Camry's are?
Even though the legislature wasn’t in session while the gigafactory Austin arrangements were finalized, upon seeing that pic with Musk and the governor my first thought was “there’s no way this deal happened without the Texas direct sales ‘elephant in the room’ being addressed, even if only informally and behind closed doors. Musk is too savvy to decide to build a factory here without safeguarding Tesla’s interests in that regard.