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Blog Texas Legislature Kills Direct Sales Bill

Discussion in 'Energy, Environment, and Policy' started by TMC Staff, May 31, 2017.

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  1. TMC Staff

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    Tesla’s efforts for direct sales in Texas were killed Monday by the state legislature. The automaker had pushed legislation in March that would have allowed vehicles to be sold directly to buyers, rather than through a franchised dealership. “Once again, the legislature failed to act on Texans’ demands for 21st century car-buying options, meaning the...
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  2. Grendal

    Grendal Active Member

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    They should add to that statement: "Proving clearly that the legislature is influenced by money over the rights and freedoms of its citizens."

    And if they really want to get controversial and make national news on the subject add the following: "So Tesla would like to ask directly, how much money will it cost us to change your mind? Since bribery is what matters to the Texas legislature."

    It's not going to happen that way, of course. There will be lots more lobbying and maneuvering and Tesla will try again in a few more years.
     
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  3. Rockster

    Rockster Active Member

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    We Tesla veterans know that Texas' prohibition of direct sales is, at most, a trivial inconvenience; however, I fear this is going to cause much confusion when Joe Average starts lining up to buy the Model 3. Tesla must get ahead of this during the purchase process and make it very clear to Texas residents that they can still buy a Model 3 and what the process entails. Even now, the process isn't consistent. Some people in Texas have reported that the purchase process is more streamlined than before in that there's no longer any need to go stand in line and pay the sales tax separately, but others in Texas report that's not the case. Confusion as to the sales logistics just will not do.

    And if Tesla is clever, they'll combine this with their grassroots lobbying efforts so that every Model 3 reservation holder and owner in Texas will be clamoring in support of Tesla when the next legislative session begins.
     
  4. patrick40363

    patrick40363 Member

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    Lots of backwards states.
     
  5. 3s-a-charm

    3s-a-charm Active Member

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    How do I do a "like" and a "disagree" on the same post :)

    I can't believe our elected representatives can't seem to actually represent the people.
     
  6. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Well-Known Member

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    They represent the people that get them elected. Occasionally that's some of the electorate.
     
  7. byeLT4

    byeLT4 Member

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    How disappointing.... But not surprising......
     
  8. Waiting4M3

    Waiting4M3 Active Member

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    Tesla can still operate galleries so people can see the cars. And people know how to order online, at least a few 100 thousand people did last Spring. So I don't think this is a big roadblock for Tesla.
     
  9. dmode

    dmode Member

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    Business FriendlyTM Texas
     
  10. David99

    David99 Active Member

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    I think most car companies don't want to set up their own dealerships and service centers. In fact most manufacturers do not want to deal with the clients directly and let stores do the foot work. There would be some very talented, educated and motivated people in Texas who would love to become a Tesla dealer and they would do an excellent job in sales and service. It's not like the only alternative is going to an old, dishonest car dealer that has no clue about EVs.
     
  11. stopcrazypp

    stopcrazypp Well-Known Member

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    That may be true, but as soon as that happens, the dealer groups are going to point to that dealer as one the law should protect, and also say that if Tesla can do it in that one instance why isn't it appropriate to force them to do it everywhere in the state.

    A lot of the dealer laws started with the idea of protecting franchised dealers from predatory manufacturer owned stores. But they evolved into direct bans.

    I don't really see the chances of a third party franchised dealer happening until at least the laws in the given state allows for direct sales. If they open a third party dealer before then, there is pretty much no chance of the ban on direct sales being lifted.
     
  12. voyager

    voyager Member

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    Just as Texas was shutting the door on Tesla over their direct sale model last week, they relaunched their $2,500 electric vehicle rebate to spur EV adoption. While it’s good news for EV buyers in general, Tesla buyers are not likely to have access to the program since its going through dealerships, which Tesla is not allowed to operate in the state.

    Texas brings back $2,500 electric vehicle incentive, but Tesla buyers could be blocked
     
  13. dgpcolorado

    dgpcolorado high altitude member

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    But car dealers are "people" too and they actually contribute sizable amounts to campaigns. Who better to "represent" than the dealers who line the elected representatives' pockets? Seems simple enough!
     

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