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Yahoo: Why Texas Bans The Sale Of Tesla Cars

China

By China
in The Tailgate

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TheGoodBits

TheGoodBits

Posted
Posted

Okay. The way the article read and from what I've heard myself it was his intention to not have an actual dealership. You would walk up to a terminal in a store and build your vehicle and purchase it there.

Either way the car is incredibly cool and I hope it pushes on.

Yep, correct. They have completely separate service centers.

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Dan T.

Dan T.

Posted
Posted

This would soften up the Texans... Tesla is thinking about a pick-up truck.

 

From China's link below:

Besides talking about the entry-level model, von Holzhausen commented "There will be a time and place for us to develop something around a pick-up. That's a market for which the torque of an electric motor would be ideally suited.

 

 

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twa

twa

Posted
Posted

Not until the conservative blogosphere gets its story straight. Then, we will see said post. This one is too new, he's not sure how to attack this one yet

actually it is a old story here, and a boring one....but then Cali people whining usually is  :P

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Predicto

Predicto

Posted
Posted

But... if Musk truly wanted to cause a massive shift in the car market as a "game changer," he would have designed a vehicle in the $30K range for the everyday man.  He would have taken the Henry Ford route and designed the Model T at a price that everyone could afford.

 

It's hard for a new company to achieve the economy of scale necessary to do that and actually produce a quality product of this complexity.

 

Musk is using the status symbol guys to build up his company in order to serve a larger market in the future.  I honestly don't see any other way he could have done it these days.

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twa

twa

Posted
Posted

The video didn't work for me, and the article doesn't explain WHY Texas kicked them out, other than his competitors don't want him there.  For a state as republican as Texas, they sure don't seem to understand free-market capitalism.  

 

it didn't explain because Texas didn't kick them out, it sounds less cool to say your request for a waiver from the law was not granted though.

 

but then they are special  :rolleyes:

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Springfield

Springfield

Posted
Posted

So I take it that Texas has a law that states that auto companies can't sell directly to the consumer? That's the dumbest law I've ever heard of.

Are there no Apple stores? No American Eagle? No Waffle House?

Why on earth would the government block a business from selling its product directly to consumers?

Automobiles aren't prescription drugs that have to be administered properly. Automobiles are a good like anything else. Clothes, electronics, food.

I'm really starting to think that Musk is our modern day revolutionary.

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twa

twa

Posted
Posted

So I take it that Texas has a law that states that auto companies can't sell directly to the consumer? That's the dumbest law I've ever heard of.

 

most states have that law......but then dumb usually travels in packs

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twa

twa

Posted
Posted

Tesla seems to be selling in most states, so I challenge that assertion.

challenge away

 

 

In the United States, however, direct manufacturer auto sales are prohibited in almost every state by franchise laws requiring that new cars be sold only by dealers. These bans on direct manufacturer sales are part of a broad array of state laws that bar manufacturer ownership of dealers and regulate entry and exit of dealers through territorial restrictions and provisions on dealer termination.

http://www.justice.gov/atr/public/eag/246374.htm

 

Telsa is still selling here as well, just not with a waiver

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TheGoodBits

TheGoodBits

Posted
Posted

challenge away

In the United States, however, direct manufacturer auto sales are prohibited in almost every state by franchise laws requiring that new cars be sold only by dealers. These bans on direct manufacturer sales are part of a broad array of state laws that bar manufacturer ownership of dealers and regulate entry and exit of dealers through territorial restrictions and provisions on dealer termination.

http://www.justice.gov/atr/public/eag/246374.htm

Telsa is still selling here as well, just not with a waiver

Interesting... Simply being granted waivers in the states with those laws then?

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Duckus

Duckus

Posted
Posted

There was legislation to fix this but the bill died in committee and never even made it to the floor. It was sponsored by a Democrat from Austin - not sure why it never made it to the floor exactly.

 

Since it didn't pass, it won't be until at least 2015.

 

To be fair to Perry, I seem to recal him saying he would sign the law had it gotten through.



challenge away

 

 

In the United States, however, direct manufacturer auto sales are prohibited in almost every state by franchise laws requiring that new cars be sold only by dealers. These bans on direct manufacturer sales are part of a broad array of state laws that bar manufacturer ownership of dealers and regulate entry and exit of dealers through territorial restrictions and provisions on dealer termination.

http://www.justice.gov/atr/public/eag/246374.htm

 

Telsa is still selling here as well, just not with a waiver

 

I wouldn't call what they are doing "selling." They are showing cars, but they can barely talk about them. From the Tesla site:


 

"We currently operate two Tesla galleries in Houston and Austin. In an
effort to comply with the current laws, employees at these galleries
are prevented from discussing pricing and the reservation process. This
includes any discussion on financing, leasing, or purchasing options.
Also, galleries cannot offer test drives. The store’s interactive kiosks
are also amended to remove pricing. Lastly, we are unable to refer the
customer to another store out of state. This puts Tesla at a serious
disadvantage and inhibits our ability to reduce misconceptions and
educate people about Electric Vehicles and the technology. Furthermore,
people are forced to leave the gallery frustrated, lacking sufficient
information about the car and the brand."

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twa

twa

Posted
Posted

What justifies that law?

I'm not a fan of it, but it does prevent monopolies and expand tax base....at a cost to consumers of course

 

I'd be fine doing away with it....I hate dealers and don't need a job

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DCsportsfan53

DCsportsfan53

Posted
Posted

In the United States, direct manufacturer auto sales are prohibited in

almost every state by franchise laws requiring that new cars be sold

only by dealers.

 

from wiki http://en.wikipedia.org/wiki/Car_dealerships_in_North_America

 

It's not that states are making anti-Tesla laws, they are enforcing laws that have been around for a long, long time.  Musk is very clever in his manipulation of the media and car dealers are an easy target for the public to villainize without considering the facts.  Tesla has been attempting to find loopholes and delaer associations in numerous states have been taking them to court over it.  I'm not taking a side in the battle but most of what's been said in this thread has no basis in fact.  All the other car companies don't have dealerships just to piss off customers and Tesla should have to abide by the same rules the other ones do since they're competing in the same marketplace.  Also, think about it from this perspecitve.  If you took away the requirement for 3rd party dealers to sell cars, how much money are you taking out of the US economy and putting in the hands of foreign car companies if the manufacturer is selling direct to the consumer?  I'm not saying the model couldn't use a change but it's a lot more complicated, as always seems to be the case these days, than the media would make it out to be.

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Larry

Larry

Posted
Posted

This may be one of those rare occasions where I agree with twa. 

 

IMO, if it's simply an existing law, then maybe it's a BAD law, but if everybody follows it, then it's at least equally bad. 

 

Now, I confess, my suspicion is that what this law really does is to mean that only people who are politically connected are allowed to become dealers.  And, once they do, they have a government-enforced monopoly.  (Unless somebody comes along who's MORE politically connected.)

 

Recall somebody once telling me that the requirement, if you want to open a liquor store, is "political connections in Tallahassee".   

 

But then, that gets into "bad law", not "make Tesla exempt from it." 
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