Texas is one of four states including Arizona, Maryland and Virginia who prohibit Tesla’s direct sales business model. This year New Jersey, New York and Ohio are being pressured by auto dealers and considering legislation that will prevent direct sales in their states.
Some states have limited the number of sales locations, etc.
Arizona lawmakers are considering changing their law as part of an incentive package to land the 5 Billion dollar capital investment that should provide more than 6000 jobs.
Despite the fact that he received 300,000 dollars in campaign contributions from automotive dealership organizations, in Texas Rick Perry referred to car dealer franchise laws as “antiquated.”
Way to go Rick!
Problem is our Legislature won’t convene until January – Tesla will probably name the winner before that.
GM sells more vehicles in a day than Tesla does all year long.
Tesla’s production is hugely limited by batteries. Batteries drive up the cost of their vehicles and slow production when they are not available.
While his cars range from 60K to 130K – well out of the average budget – he has plans to reliece a new model that will come in starting at 35,000.
Elon Musk’s goal is to sell 500,000 vehicles worldwide each year. There were 83 million sold last year.
I’m against government regulation that gives business unfair advantage, but there are over 1200 franchise dealer stores in Texas – usually family owned. These families went into business knowing the regulations and structure – so is it fair to change it on them?
Not that many years ago there were dealers closing all over town – the franchise laws had been lifted by the courts.
Perhaps there is a way to grandfather their geographic areas so that the manufacturers they represent cannot come in and open factory stores in their territory?
Let me know your thoughts –
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That Car Lady, KPRC 950 AM Houston
The Auto MOJO Radio Show Saturday mornings 6am to 8am