Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Texas Legislative update: Please help out if you live in Texas

This site may earn commission on affiliate links.
It's just not politically possible "to end all the franchise protection rules period". Tesla would get laughed out of the legislature if it proposed that (assuming it could even find a senator and representative to introduce such legislation). The dealers contribute hundreds of thousands of dollars individually and collectively each election cycle to ensure that such a discussion would never happen.
Yes. Which is why I wrote back in July that I think this is going to have to end up in the courts.
 
After reading and considering this thread:

Evolution of the Tesla Trade In (or Sanity Check Please)

I'm not completely convinced that 'captive direct sales' position Tesla wants to be in is in our/my best interest.

I never thought I would say that but I certainly see the benefits of competion vs. monopoly, and bad (bordering on abusive) behavior and practices. You need only watch the footprints.

Again, I never thought I would be coming to that opinion.
 
After reading and considering this thread:

Evolution of the Tesla Trade In (or Sanity Check Please)

I'm not completely convinced that 'captive direct sales' position Tesla wants to be in is in our/my best interest.

I never thought I would say that but I certainly see the benefits of competion vs. monopoly, and bad (bordering on abusive) behavior and practices. You need only watch the footprints.

Again, I never thought I would be coming to that opinion.

No one ever said that the Tesla model should be the only model, only that there should be a choice. Right now the dealer model is a monopoly (or at least an oligopoly). There isn't any real competition because the various car dealers are mainly owned by a few companies with a small sprinkling of mom and pop dealers.
 
No one ever said that the Tesla model should be the only model, only that there should be a choice. Right now the dealer model is a monopoly (or at least an oligopoly). There isn't any real competition because the various car dealers are mainly owned by a few companies with a small sprinkling of mom and pop dealers.
+1 for choice. As far as terminology goes - "cartel" is actually the most accurate term for what's going on.
 
The fact of the matter is, TM needs to put direct sales in a positive light... such as the sales tax revenue that the state would receive.

Sales tax is already paid when you register the car, regardless of it being bought in Cali. The positive light would be around consumer protection. Dealerships are viewed as a necessary evil when it comes to purchasing cars. Tesla could open a "store" that just has a tablet on a stand to order your car. Because the TADA/NADA are dirty and play using dirty tactics, we might be better served exposing them for what they are. I proposed a "meet and greet" with the Tesla Owners of Texas in San Antonio during the TADA state convention last year. I didn't get any takers ;)

As for ammo against TADA, some light reading material:

http://www.tada.org/web/Images/TADA/TADA%20Documents/Myth%20vs%20%20Fact_FINAL.pdf
http://www.tada.org/web/Images/TADA/TADA%20Documents/Issue%20-%20Tesla%20Final.pdf

One of the common themes here is that they feel Tesla is going to put the dealerships out of business and all those employees will be out of a job. TM isn't trying to remove existing dealerships, they're trying to open stores to ADD to the automobile buying landscape.

In addition to the upcoming legislative session, could there be focus on overturning the existing laws? I know it would involve Tesla suing, but where would that process start?
 
Sales tax is already paid when you register the car, regardless of it being bought in Cali. The positive light would be around consumer protection. Dealerships are viewed as a necessary evil when it comes to purchasing cars. Tesla could open a "store" that just has a tablet on a stand to order your car. Because the TADA/NADA are dirty and play using dirty tactics, we might be better served exposing them for what they are. I proposed a "meet and greet" with the Tesla Owners of Texas in San Antonio during the TADA state convention last year. I didn't get any takers ;)

As for ammo against TADA, some light reading material:

http://www.tada.org/web/Images/TADA/TADA Documents/Myth vs Fact_FINAL.pdf
http://www.tada.org/web/Images/TADA/TADA Documents/Issue - Tesla Final.pdf

One of the common themes here is that they feel Tesla is going to put the dealerships out of business and all those employees will be out of a job. TM isn't trying to remove existing dealerships, they're trying to open stores to ADD to the automobile buying landscape.

In addition to the upcoming legislative session, could there be focus on overturning the existing laws? I know it would involve Tesla suing, but where would that process start?

Great idea. If I had one I would be right there with you!
 
Sales tax is already paid when you register the car, regardless of it being bought in Cali. The positive light would be around consumer protection. Dealerships are viewed as a necessary evil when it comes to purchasing cars. Tesla could open a "store" that just has a tablet on a stand to order your car. Because the TADA/NADA are dirty and play using dirty tactics, we might be better served exposing them for what they are. I proposed a "meet and greet" with the Tesla Owners of Texas in San Antonio during the TADA state convention last year. I didn't get any takers ;)

As for ammo against TADA, some light reading material:

http://www.tada.org/web/Images/TADA/TADA Documents/Myth vs Fact_FINAL.pdf
http://www.tada.org/web/Images/TADA/TADA Documents/Issue - Tesla Final.pdf

One of the common themes here is that they feel Tesla is going to put the dealerships out of business and all those employees will be out of a job. TM isn't trying to remove existing dealerships, they're trying to open stores to ADD to the automobile buying landscape.

In addition to the upcoming legislative session, could there be focus on overturning the existing laws? I know it would involve Tesla suing, but where would that process start?
No dealership is going out of business unless people stop buying the brand of car they're the franchise for, and even then people would have to stop buying several brands as most dealers have several brand franchises. But even that shouldn't matter-- no other retail sector has laws protecting existing businesses from competition by new ways of doing business. Companies go out of business and new ones form all the time. It's called capitalism and that's what provides for economic growth. No independent economist defends the dealership protection laws.
 
No dealership is going out of business unless people stop buying the brand of car they're the franchise for, and even then people would have to stop buying several brands as most dealers have several brand franchises. But even that shouldn't matter-- no other retail sector has laws protecting existing businesses from competition by new ways of doing business. Companies go out of business and new ones form all the time. It's called capitalism and that's what provides for economic growth. No independent economist defends the dealership protection laws.

The only reason we have those laws is that the dealers have enough money to buy the legislators. Even if we got rid of the current crop (would be good for any number of reasons), they would just buy the next bunch.
 
.....no other retail sector has laws protecting existing businesses from competition by new ways of doing business....
I suspect that you haven't spent much time thinking about how alcoholic beverages are sold in the state of Texas. Ever notice how in some states you can buy hard liquor in Target or Wal*Mart but in Texas you can only buy hard liquor in locally owned liquor stores? Yeah, the Texas Package Stores Association is basically the same sort of cartel as the TADA. However we can't really make the same constitutional argument about liquor stores as we can about auto dealerships, because the 21st Amendment, which repealed Prohibition, also specifically says that states can have their own laws regulating "intoxicating liquors."
 
I suspect that you haven't spent much time thinking about how alcoholic beverages are sold in the state of Texas. Ever notice how in some states you can buy hard liquor in Target or Wal*Mart but in Texas you can only buy hard liquor in locally owned liquor stores? Yeah, the Texas Package Stores Association is basically the same sort of cartel as the TADA. However we can't really make the same constitutional argument about liquor stores as we can about auto dealerships, because the 21st Amendment, which repealed Prohibition, also specifically says that states can have their own laws regulating "intoxicating liquors."
You're right, I should have specified sales of "non-addictive products" as I usually do when I go on this rant. But then former San Antonian dsm363 called me out on it asking if I was saying Tesla wasn't addictive?

By the way it's not just hard liquor. Beer has its own cartel, with the state requiring retailers buy it from beer wholesalers and not the brewery. The beer wholesaler cartel and auto dealer cartel work together in the legislature to protect each other's turf, because if there's a crack in one protected industry someone may be more likely to come after the other one next.
 
Can we also try to get TX DOT to sticker (or otherwise authorize) our Zero Emission Vehicles for HOV use? This would be yet another selling point for Teslas: Save You Time in Commuting!

Rick

We did ask the North Central Texas Council of Governments to look into the feasibility of offering benefits like HOV and free toll road access to EVs. It will take negotiating with the North Texas Tollway Authority and their investors, but we will see.