Tesla Motors Comes Up Short in the Lone Star State: Insider Monkey

[Stuart G]

http://www.insidermonkey.com/blog/tesla-motors-inc-tsla-comes-up-short-in-lone-star-state-157965/

It has been well documented over the past few months that Tesla Motors Inc (NASDAQ:TSLA) is looking for a way to expand its presence in new states, including Texas. While there doesn’t appear to be anything wrong with this, the company has run into resistance time and time again.

This is due in large part to the way that Tesla sells its vehicles directly to consumers. As you can imagine, many dealers in the state of Texas are not happy with this sales model. For this reason, they have put up a fight and for the time being it appears they have come out on top........(further down)

Here is a brief excerpt from an Automotive News piece published earlier today:

“Tesla-backed bills that would have created an exemption to current state law restricting factory-owned dealerships failed to make it to the floor of the Texas House or Senate for voting. The Legislature's regular session ended Monday, May 27, and it won't meet again in a general session until 2015.”

another story on this subject from Automotive News:
http://www.autonews.com/article/20130603/RETAIL07/306039966/tesla-loses-its-battle-to-sell-directly-in-texas#axzz2VAwZtCVQ

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It looks like Texas talks so much about the "free enterprise system" does not want the "free enterprise system" when it comes to competition with auto dealers who are established. So.. an electric car cannot sell because it has no dealerships like the current dealers?. I will not say what I really feel about the Texas legislature...Let me say, it sucks..............

[NYC_SKP]

1. WTF?: "won't meet again in a general session until 2015.”

Are they taking a year off???

[cloudbase]

4. They meet for 140 days every two years.

[madrchsod]

2. tesla wants to avoid paying taxes, the hassle of dealerships,and state regulations

so if you want to buy a tesla i guess they either send you one to test drive or they fly you to the assembly plant. the american public isn't going to pluck down serious cash for a car that can't drive or be able compare to another.

i think tesla better figure out they are not going to convince very many state legislators about this plan.

[NYC_SKP]

6. I think they'll be successful and do well. This is a new way to do business, and better.

No, there are and will be more Tesla showrooms, just like Honda showrooms only owned by the factory, not by a middle-agent.

Interestingly, the state franchise laws that were created post-prohibition come into play in many of the states where Tesla is having trouble.

The laws stated that distillers can't sell directly to consumers, that there have to be distributors in the middle.

This has become a problem for boutique booze makers, like micro-breweries, so they're in the same fight as Tesla.

What's wrong with the Tesla model? It will save the consumer money and allows the factory to hear directly from owners and prospective buyers.

The only difference is that showrooms will be factory owned and staffed.

I love it.

[cprise]

7. I suspect there's more to this issue than meets the eye

Independent dealerships mean that your parts, tooling and processes can't be so esoteric that only a technician working solely for the manufacturer can repair the cars... a dealer can train their mechanics on several makes and expect them to do a good job on all the cars using one repair facility.

Companies like Apple and Mercedes are moving in the opposite direction away from serviceability. I would assume that Tesla is in that camp where those two want to be.

[Scuba]

3. Governor Goodhair must be furious about this unnecessary regulation!

Or not.

[Downwinder]

5. But don't talk bad about our cattle.