Saturday, May 23, 2015

Law Bans Direct Sales --So Much For Texas Free Markets

Tesla Won't Be Selling In Texas

By Yoni Heisler, May 20, 2015, BGR.com

Despite Tesla’s best efforts, the Texas legislature this week opted not to pass a bill which would have allowed the electric automaker to sell cars directly to consumers. Instead, if Tesla wants to sell its highly revered vehciles in the lone star state, it looks like it’s going to have to do it through local franchise dealers, something the company has no intention of doing.

Unfortunately, this is a story we’ve seen play time and time again in many states over the past few years. Tesla, which prefers (read: demands) to sell its cars directly to consumers, is forced to lawyer up and fight against powerful and influential auto dealer lobbyists who want to protect their cash cows.

Highlighting the outdated nature of franchise laws, Tesla CEO Elon Musk, following New Jersey issuing a similar ban against Tesla direct sales, penned an insightful letteron the topic to the “people of New Jersey.” Thankfully, New Jersey this past March took heed, wised up, and reversed its sales ban.


Read the full story: www.bgr.com

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