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Tesla Motors (TSLA) lost its legal tussle with auto dealers in Texas over its plan to sell...

Tesla Motors (TSLA) lost its legal tussle with auto dealers in Texas over its plan to sell electric vehicles directly to consumers. A bill that would have provided an exception to current dealership rules failed to even make it the floor of the Texas House or Senate for a vote.
Comments (55)
  • Petrarch
    , contributor
    Comments (818) | Send Message
     
    big surprise
    these are the same people who created legislation to keep Southwest out of DFW. The Wright Ammendment
    P
    4 Jun 2013, 07:43 AM Reply Like
  • dacama1
    , contributor
    Comments (219) | Send Message
     
    Boy, don't those Texans love freedom of choice for the consumer.
    4 Jun 2013, 07:48 AM Reply Like
  • BillTxn
    , contributor
    Comments (10) | Send Message
     
    So you want to buy your Tesla from Amazon? Where, then, will you get it serviced? This will be a vehicle that will require specialized training for mechanics who service it -- where do you expect them to work? In this case, perhaps "consumer freedom" has more of a downside to it.
    4 Jun 2013, 08:04 AM Reply Like
  • weekendmoe
    , contributor
    Comments (138) | Send Message
     
    Ever heard of service-centers? Or ranger service? The Internet is a scary thing. Lets avoid it!
    4 Jun 2013, 08:15 AM Reply Like
  • chopchop0
    , contributor
    Comments (3639) | Send Message
     
    TSLA wasn't planning on using AMZN to sell its vehicles. Unless you know something we dont?
    4 Jun 2013, 09:04 AM Reply Like
  • uncle_fweddy
    , contributor
    Comments (60) | Send Message
     
    Wrong, Bill. And I'm ashamed of Texas, for bowing to the special interests, like this. Tesla has its own service arrangements: They come out to your place with another Tesla loaner, and take yours in to their facility, for any necessary service, or upgrades, many of which can be done online, in any event. Have you forgotten how bad dealers will screw you every time?

     

    I went into my local dealer to have a power steering hose replaced, actually, I only needed half replaced; it's a two piece hose. They nailed me $250 for the hose, and another $250 to install it...500 smackers to get half a steering hose replaced. There's the quintessential dealership experience for you. No thanks.
    4 Jun 2013, 10:21 AM Reply Like
  • Yuro
    , contributor
    Comments (139) | Send Message
     
    fweddy:

     

    Buy a Porsche or BMW or Audi and really see how dealers tweak you for service!

     

    BillTxn:

     

    Go to teslamotors.com and see how they do what they do...

     

    1. The "store" is just a showroom, usually in a big mall. They provide info, have a car in the showroom you can get in and play with. They have color charts to help you select colors and option descriptions to help you with that. Also provide info on things like range and performance. They'll sell you a Tesla t-shirt or a Tesla coffee cup but they won't sell you a car. They have computers there if you want to put a refundable deposit down, but it's just you on the internet, same as in your house or office. You CAN'T buy a car there. You CAN'T negotiate price. You can't get service. Even test-drives are arranged online and by appointment. No one there is on commission. You are encouraged to walk in, kick the tires etc. and walk out. No problem.

     

    Frankly, you have to get a test drive to understand what the big deal is with these cars. They are very special to drive and you really won't get it just sitting in one or looking at it.

     

    Once you buy a Tesla, DIRECT FROM TESLA MOTORS, not through a dealer and certainly not through Amazon, there are "service centers" in non-high-traffic areas. If there's no service center near you, you can get a "ranger" to come to your home or office with specialized equipment to service your car on the spot. If it's not working, they can give you a loaner. (Texas Rangers? I like that!)

     

    Point is, the traditional dealer network is pretty useless at Tesla.

     

    What I think is that the Texas legislature didn't bother to read the proposal and just shot it down...thinking what you were thinking...cars on Amazon....or maybe just "protect my uncle, the car dealer" or perhaps "protect my chance for re-election with oil lobby money".

     

    Tesla does what it does for a couple reasons...1. Better control of the service. 2. Better protection of the knowledge base. 3. Better control of sales and less chance of misinformation from salespeople paid on commission.

     

    This news is shocking to me. I'm sure the oil lobby killed it in TX.
    Also think it's unconstitutional, but that's another subject for another day.
    4 Jun 2013, 11:51 AM Reply Like
  • msteck
    , contributor
    Comments (50) | Send Message
     
    Dealerships in their current form are archaic, its time to move forward. They don't need to be protected by government, it is counterproductive and bad for consumers. Also TSLA requires less less specialized service due to the simplicity of the electric engine and its lack of a transmission.
    4 Jun 2013, 12:51 PM Reply Like
  • Petrarch
    , contributor
    Comments (818) | Send Message
     
    thanks for telling me what my "freedoms" should be - for "my own good"

     

    any other freedoms you want to decide for me - particularly about how I spend my own cash to buy legal and freely available products and services.

     

    P
    4 Jun 2013, 01:58 PM Reply Like
  • antiguajohn
    , contributor
    Comments (72) | Send Message
     
    Hi BillTxn,

     

    What was that word "service"?

     

    Electric cars require 95% less service than fossil fueled vehicles.

     

    Jay Leno has a 1909 Baker Electric car, the motor has never been serviced and the original Edison batteries still work!

     

    Besides Tesla has real service, they come by your house with a top of the line Tesla S loaner on a flat-bed truck and pick up your Tesla S if it needed service, now that's service!

     

    What other dealers offer is you having to bring in your car, which was designed to have a limited life span, then you pay exorbitant prices for parts and they call that service?

     

    I would say that's more like service in the sense of a Bull servicing a cow;-(

     

    As to allowing Tesla to avoid car dealers, well I am a great believer in letting the consumer and the market sort out what survives and what doesn't, perhaps there are too many socialists in Texas to allow for a free market?

     

    Best wishes,

     

    antiguajohn
    4 Jun 2013, 05:44 PM Reply Like
  • KFE-NC
    , contributor
    Comment (1) | Send Message
     
    There are already two service centers in Texas. Tesla's business model is to provide customer service far beyond that of traditional dealerships. I have experienced this first hand. They have driven 4 hours to service a friends Roadster. The simplicity of the mechanical components allow "on site" service. Perhaps the "Dealers" are just a bit scared.
    5 Jun 2013, 08:37 AM Reply Like
  • doc tari
    , contributor
    Comments (21) | Send Message
     
    The Mafia could not have done a better job to kill competition and freedom of consumer choice. Go Texas! #1 in Guns per cap. #1 in unlicensed drivers. Another Texas milestone....or is that Millstone.
    4 Jun 2013, 08:02 AM Reply Like
  • uncle_fweddy
    , contributor
    Comments (60) | Send Message
     
    Well Doc, let's see. A probably several acre installation, a way overpaid all union shop, parts priced at some multiple of their Auto Zone prices, sky high hourly labor rates, and a fat slice of profits for the absentee owner, heavy operating expenses (e.g. Real Estate taxes, industrial sized utility costs, and let's not forget the bloated union labor costs, and legacy costs for anyone who's managed to retire...whew!). I'd say Millstone, rather than milestone.

     

    Or, as Dad once said to Mom, in the midst of a particularly heated argument: "Oh, you're such a milestone around my neck."
    4 Jun 2013, 10:32 AM Reply Like
  • frosty
    , contributor
    Comments (703) | Send Message
     
    Texas socialists strike again! Another example of big government stifling private business! Whatever happened to free enterprise?
    4 Jun 2013, 08:04 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5657) | Send Message
     
    It's Texas. Oil revenue is big. Bet they don't like (TSLA) anyway.
    4 Jun 2013, 08:13 AM Reply Like
  • daveruns2win
    , contributor
    Comments (20) | Send Message
     
    There are Tesla service centers in Dallas, Houston, and Austin and Tesla stores in Houston and Austin. I'm guessing there are two hundred Teslas already sold in Texas (maybe more). So I'm not sure what this means, if anything. I do think that it stops Tesla from financing cars directly, stops Tesla from collecting sales taxes for the state of Texas, and might stop delivery at the stores (instead they must be delivered to your home or office). Is this a tempest in a tea pot?
    4 Jun 2013, 08:19 AM Reply Like
  • TikiManProd
    , contributor
    Comments (127) | Send Message
     
    I know a few companies that had been decided to moving to Texas, whom are now re-considering in lieu of this decision.

     

    Texas meet Turkey, you might soon have a lot in common… http://bit.ly/13iAaIP
    4 Jun 2013, 08:19 AM Reply Like
  • chopchop0
    , contributor
    Comments (3639) | Send Message
     
    Everything is relative. TX makes a lot more sense than CA for most companies.
    4 Jun 2013, 09:04 AM Reply Like
  • mulder1231
    , contributor
    Comments (17) | Send Message
     
    Agree, this may backfire. Governor Rick Perry visits California all the time to try and lure companies to conduct business in Texas. However, they are now wondering if they will be given "the Tesla treatment" also. So much for free enterprise in Texas, lol.
    4 Jun 2013, 09:52 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5657) | Send Message
     
    I don't know, Texas seemed too hot for me. And too much rapid weather. I would base my business somewhere which is less likely to have a tornado or flood or drought.
    9 Jun 2013, 11:57 PM Reply Like
  • donabalone
    , contributor
    Comments (14) | Send Message
     
    Just a few days ago, these comments sections were so filled with optimism, now after the stock has dropped $20 from its peak, its "What's going to go wrong next?" I see this stock at $50 by mid summer, and even there, its will still be overvalued.
    4 Jun 2013, 08:23 AM Reply Like
  • PeterJA
    , contributor
    Comments (2778) | Send Message
     
    Just a few weeks ago, you were joyfully daytrading the stock.
    http://seekingalpha.co...
    Now, after a totally normal pullback, the only one filled with pessimism is you and a few other grumps who don't understand Tesla's longterm plan.

     

    If you see the stock at $50, then please do short it. Elon's bear trap has been set just for you. If you want other dumbos to join you, then provide some evidence for your opinion, instead of just repeating it over and over.
    4 Jun 2013, 09:31 AM Reply Like
  • uncle_fweddy
    , contributor
    Comments (60) | Send Message
     
    Right, donabalone; I'm a guitar player, and therefore have a great respect for fine instruments. After seeing some that have been abused, at the hands of...well, idiots...I have thought: "Some people are so stupid that hey should be forbidden by law to own a musical instrument".

     

    Perhaps the same is true for some shareholders of Tesla; apparently, they're so stupid that they can't recognize Tesla for the revolutionary, evolutionary, deeply disruptive, and ultimately very valuable company that it is. They're more just buying and selling things, shares of stock, in this case; they have no real idea that Tesla, at heart, is no less than a bet on America. So, they're here, and at the first sign of trouble, they're gone...speculators, not investors. But you know...so what? Tesla is a powerhouse in the making.

     

    Take this Supercharger network, for instance. That is a mind-bogglingly good investment. They're solar powered, so they actually add power to the grid, and they'll pay for themselves, over time. And Tesla owners get free fuel for life. Imagine how good a deal a Cadillac--or any regular car--would be if the manufacturer threw in free gasoline for life. Are you kidding? That's great! (Screw you Big Oil, and all you Sheiks)

     

    We're down, a little--from record highs--right this second. But make no mistake; this baby is going to change how cars are thought of.

     

    Yes, there are vested interests (e.g. Big Oil, The Big Auto makers, Big Labor, Dealership networks, weak kneed politicians, and other middlemen, etc) who will resist this. But this juggernaut is coming. Can you say Tsunami, boys and girls?

     

    Doubters can move it or lose it. I'm holding my Tesla...wish I could afford a Model S. Well, maybe after the stock runs awhile...
    4 Jun 2013, 10:56 AM Reply Like
  • winston123
    , contributor
    Comments (80) | Send Message
     
    texas is missing the boat! Teslas will do an end run and Texans can buy in another state!
    icvs and oil have always pulled the strings on the consumer getting a break.

     

    Free at last! Thank God we are free from oil!
    4 Jun 2013, 08:24 AM Reply Like
  • bbor55
    , contributor
    Comments (154) | Send Message
     
    Texas is actually one of the more advanced states in terms of charging infrastructure, which I heard about maybe 6 months ago and was surprised to hear.

     

    Also, Elon testified in front of the Texas State House on behalf of SpaceX, looking to built a private space launch facility on the tip of Texas near Mexico. There is a video on YouTube and it is surprising how much they coddle him in the questioning, saying how great he is, SpaceX is, and even mentioing how much they love Tesla.

     

    After watching that a few months ago, and then hearing of potential trouble in Texas, I thought for sure it would blow over. I would think Elon would be less likely to now build the SpaceX facility in Texas, as long as the other potential sites offer at least an equal deal.
    4 Jun 2013, 08:27 AM Reply Like
  • TXjak
    , contributor
    Comments (4) | Send Message
     
    This is pretty old news.

     

    "Business friendly Texas" doesn't apply to ALL business, apparently, but this issue is not over yet. Watch for it to come back in the next session.

     

    The politicians can only hold out against popular opinion for so long.
    4 Jun 2013, 08:40 AM Reply Like
  • Joe Dirnfeld
    , contributor
    Comments (1128) | Send Message
     
    An American product built by Americans that adds jobs and promotes a greener environment gets blocked, how abusive is the Texan government.
    4 Jun 2013, 08:45 AM Reply Like
  • patb2324
    , contributor
    Comments (91) | Send Message
     
    Texas is still running on the old cattle ranchers or oil field mentality. This is straight out of the cowboy movies we watched as kids. There are a lot of little kingdoms in the big T.
    4 Jun 2013, 08:47 AM Reply Like
  • JosePelon
    , contributor
    Comments (8) | Send Message
     
    Wonder if you can buy a used car over the internet?
    4 Jun 2013, 08:48 AM Reply Like
  • weekendmoe
    , contributor
    Comments (138) | Send Message
     
    Texas says NO! Internet is bad for you....
    4 Jun 2013, 10:19 AM Reply Like
  • horseblue
    , contributor
    Comments (2) | Send Message
     
    There seems to be a theme with government regulation as of recent years to mandate middlemen. I knew that the alcohol has it in most states, with EMR we now know that drugs have it...I was suprised with TSLA to learn that car dealerships are mandated. Sure I can see the value...but forced? I question that. I would be curious from a financial level what would happen to the auto industry numbers if you took out the forced middleman/dealership and opened up options for a different route.

     

    + or - ?
    4 Jun 2013, 08:55 AM Reply Like
  • JackB125
    , contributor
    , TSLA PRO Alerts subscriber
    Comments (317) | Send Message
     
    @horseblue,

     

    See the DOJ's "Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers" @ http://1.usa.gov/12sIHfx
    5 Jun 2013, 04:50 PM Reply Like
  • mindell
    , contributor
    Comments (12) | Send Message
     
    Count on TX to fight an innovative business model benefiting consumers.
    4 Jun 2013, 08:55 AM Reply Like
  • orthophonist
    , contributor
    Comments (126) | Send Message
     
    This is properly handled in Federal court. An independent poll of Texans would probably add a great deal of weight to the case.

     

    There is a principle that must be addressed here.
    4 Jun 2013, 09:00 AM Reply Like
  • Dan Fichana
    , contributor
    Comments (1920) | Send Message
     
    So what happens if you buy a car in another state?
    The way I see it, Tesla just has to set up their "sales" facility in a state that has no car dealership laws.
    Problem solved- no different than if a Texan were to go to that other state/or call up the sales in said other state, purchase the car and had it delivered.
    4 Jun 2013, 09:26 AM Reply Like
  • JackB125
    , contributor
    , TSLA PRO Alerts subscriber
    Comments (317) | Send Message
     
    Texas and North Carolina are now tied for the most corrupt legislatures.

     

    A super-majority of their constituents want alternatives to the dealership business model. And what do the legislators do? They not only vote against the clear will of the people; they vote directly counter to their "free-market, no government interference, anti-regulation" publicly stated economic philosophy. Corrupt hypocrites.

     

    We are witnessing the best government NADA, TADA, and NCADA can buy.

     

    I pray that this nonsense will be overturned at the federal level.
    4 Jun 2013, 09:26 AM Reply Like
  • Yuro
    , contributor
    Comments (139) | Send Message
     
    Jack:

     

    Unfortunately, in Texas, every "constituent" has a relative who works in the oil business or for a car dealer or for someone who supports those businesses. They see Tesla as a real threat. Loosing a good job for the sake of an electric car isn't really a good bargain for many of these people.

     

    It's not right. This decision is wrong, but it's not a surprise in this state. Car dealers are a PITA but they are also job providers. Still, with the Tesla sales model, I was shocked at this news.
    4 Jun 2013, 12:05 PM Reply Like
  • JackB125
    , contributor
    , TSLA PRO Alerts subscriber
    Comments (317) | Send Message
     
    @Yuro,

     

    You are somewhat misinformed about Texas. I live just north of the Capitol -- Austin -- and testified at the House Committee for the Tesla bill. At the committee hearing, there was overwhelming support for the bill & 80% of the committee sent it on to the full House where it was THEN shelved.

     

    In an business journal poll that the TADA tried to stuff, there was still an 86% approval rating for the bill. I couldn't be more ashamed of the Texas House.

     

    Although TX does have a large oil interest, its economy is actually very diversified -- including a very large high tech sector. And surprisingly to most people, it is a leader in renewable energy -- especially wind.

     

    It was not the oil lobby that was the primary opponent to the Tesla bill. It was the dealership association TADA. Their lobbyists have the Texas House in thrall mostly via campaign contributions.

     

    Texas, one of the most conservative, anti-regulation states in the nation just backed the anti-competitive, economic rent of its ancient automobile franchise laws (pure anti-free market government regulation) due to the special interest lobbying of TADA. And this was done AGAINST the express will of their constituents -- a super-majority of their constituents no less.

     

    To make it worse, these hypocritical legislators are constantly touting their free-market, anti-government interference, anti-regulation ideals. It make me nauseous.

     

    I see this as an abject failure of democracy in my state.
    5 Jun 2013, 11:15 AM Reply Like
  • 123man
    , contributor
    Comments (1148) | Send Message
     
    What the Texas legislators want is to line up cushy high paying jobs as lobbyists for the big game corps and the way they are going, they are certainly on the road - good thing, because if enough people read/see them they won't have a job in government - hopefully, Elon will pull the plug on Texas citing this situation as the reason and we can all watch as these guys circle the drain -
    4 Jun 2013, 09:42 AM Reply Like
  • JackB125
    , contributor
    , TSLA PRO Alerts subscriber
    Comments (317) | Send Message
     
    I saw many committed Model S owners, Tesla investors, and Tesla employees at the Texas House committee meeting. Don't punish us and the super-majority of Texas citizens that were in favor of the bill for the sins of our rotten legislature.
    5 Jun 2013, 11:24 AM Reply Like
  • chickensevil
    , contributor
    Comments (712) | Send Message
     
    This makes 2 states that have continued down this path (Texas and North Carolina) and one state that has resisted (Mass.)

     

    As someone who dislikes further intruding government I am opposed to this on every level regardless of how much I like Tesla. Reminds me of when the textile workers started rioting in the streets demanding that the textile machines be made illegal because it was going to make them lose their jobs (yes, I did just relate this to an 18th century issue). Had they got their way, we might not have had cheap and affordable things like socks, which at the time were only available to rich people.
    4 Jun 2013, 10:04 AM Reply Like
  • Aaron.Rhodes
    , contributor
    Comments (255) | Send Message
     
    Socks are overrated! Don't mess with Texas (Sarcasm)
    4 Jun 2013, 10:37 AM Reply Like
  • Shannon Shelmire
    , contributor
    Comments (16) | Send Message
     
    No one should be allowed to respond except Tesla owners. Until you've driven one you have no clue about what you are speaking. Plain and simple. I live in Texas and have become accustomed to our backwoods ways. If it were not for us the rest of you would look to be insane. Cramer said it all. Drive a Tesla, then you can open your big mouth.
    4 Jun 2013, 11:09 AM Reply Like
  • jerseycitymoe
    , contributor
    Comments (2) | Send Message
     
    Texans are smarter than many people. Requiring dealerships is pro consumer. Buying only direct from TSLA means no competition in the selling business. With dealerships a buyer can play one off with the other to get a lower price. Stockholders want direct consumer sales so that the high projected profit margins go to shareholders. Shareholder greed is in back of direct sales. Most shareholders will not admit it, but for the most part they believe in screwing thte consumer as much as possible.

     

    What proof is there that a super majority of Americans are opposed to a dealship arrangement. On statements like that one, proof should be given if proof exists.
    4 Jun 2013, 11:56 AM Reply Like
  • bbor55
    , contributor
    Comments (154) | Send Message
     
    Competition can still occur at the producer level. Is there really a lot of people playing dealers off eachother under the same brand? And why should it be this way period? What other products do you buy like a car?

     

    Is there a full analysis of alternatives somewhere on the manufacture/dealer model. To me they model would only work to increase prices, not decrease them like you say, and it would be in Teslas best interest to do just that and make this model work for decreased prices.

     

    Ford has to make a profit (10%), and the dealer has to make a profit (10%)... so you are saying Tesla makes the Ford profit, the dealer profit, and additional profit on top of that? Seems silly to me. Tesla has stated a 25% gross margin, which will probably come out to be 12-15% operating margin. That means cars for 5-8% cheaper than they would be if they went through two levels of sales in the manufacture/dealer model.
    5 Jun 2013, 09:10 AM Reply Like
  • JackB125
    , contributor
    , TSLA PRO Alerts subscriber
    Comments (317) | Send Message
     
    If the dealership model is go great, why does it need the protection of the state franchise laws? Why can some dealerships not weather a truly free market?

     

    BTW, the Texas poll... http://cnnmon.ie/12sIHfv

     

    The NC poll... http://bit.ly/10YPsj2

     

    Also, see the DOJ's "Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers" at http://1.usa.gov/12sIHfx

     

    Tesla and any other auto manufacturer should be able to use any ethical sales model they choose. Why not let the consumers decide how they want to purchase their vehicles? If the dealership model satisfies their needs best, they'll use it. If consumers prefer a direct sales model, again, they'll use it.

     

    The point is that they should have the choice. As long as the business model is ethical, government has absolutely no business limiting that choice. In fact, limiting that choice is clearly a very poor economic policy.

     

    Just look at the enormous inventory burden that the dealership model carries. Those costs are passed on to consumers. And, the stories of bitter dealership sales experiences are legion.

     

    With Adam Smith's "invisible hand of the market" tethered to these economically idiotic franchise laws, there is no chance of improving the business model -- and the consumer suffers it year after year all do to the special interest lobbying of the dealership associations.
    5 Jun 2013, 12:21 PM Reply Like
  • azgog
    , contributor
    Comments (197) | Send Message
     
    Texas is a hydrocarbon empire so you are fighting a combination of Big Oil, the dealership association, all the gas station owners and all their paid lobbyists. That's OK, Tesla will silently maneuver around them as the natural advantages of EVs become yet more self-evident.
    4 Jun 2013, 12:17 PM Reply Like
  • 11918791
    , contributor
    Comments (2) | Send Message
     
    In the end it is all moot - if you want a Tesla you can buy it. Let them try and make it harder, who cares.
    Think actually it will help sales - made me want to buy it more :-)
    I bought mine - send them the money, got the car. What is the big deal. And Texas even got the sales tax money from me when I registered it, wish I would have had a permanent address in Oregon (no sales tax).
    I know dealers are scared - change is always scary. If they don't change they will be gone.
    And no electric is not the ultimate solution, but it is the next one.
    Horses to gas, gas to electric - yes, I think it is that big of a change coming...
    I've driven my Tesla over 13,000 miles so far - on just the power of the sun (I have solar panels - another very inexpensive way to power your house - and now my car)
    4 Jun 2013, 01:51 PM Reply Like
  • chschapira
    , contributor
    Comments (3) | Send Message
     
    The few states that have vehicle sale laws that prevent manufacturers from selling directly to customers are antiquated laws that need to be over turned. The North American Dealers Association, NADA, the states and Tesla should all should sit together and work out a solution to these antiquated laws that came about from dealers doing a POOR job of pleasing the customer and the likes of GM and Ford trying to establish direct delivery locations in states like Texas in 1999.

     

    If you look at the current EV sales market and the number of authorized dealers to sell and service these EV's, GM, Nissan, Honda and Ford, not all dealers are authorized to sell and service their offering as the sales and service teams have not been trained on EV's.

     

    Yes a car is a car. However an electric drive train is not an internal combustion engine, ICE. The safety training that must be in place for a technician working on a car with a 408V battery pack is extensive. Maybe Elon should allow dealers in Texas to sell Tesla's on a newly constructed sales facility and only after then send their sales and service team members to Tesla training. Or just let them sell and service the cars. Once a technician takes a 408V shock and the dealer is being investigated by OSHA and the law suits start flying, the dealers will see what a great deal it is to let Tesla run their own stores and service facilities.

     

    Over all there should be exemptions made to manufacturers making fewer than 500,000 globally.

     

    If you want more background on the power of former governors, politics and auto dealers, read this article published in February 2009, http://bit.ly/YG8VbL.
    4 Jun 2013, 01:58 PM Reply Like
  • BillTxn
    , contributor
    Comments (10) | Send Message
     
    Another point to consider is that first responders (fire fighters, especially) must also have extensive training in how EVs and hybrids are constructed and wired, in order to avoid using the jaws of life, for example, and accidentally cutting through a high voltage wiring bundle which puts the responder AND the occupants of the vehicle at great risk.
    As to other comments about TX -- if you don't live in the state, it may be difficult to comprehend the great distances some folks travel on a regular basis -- distances which EVs cannot yet accommodate due to limited battery life. That fact does not mitigate the action of the TX legislature, but it would be worth looking at what was actually in the bill that was defeated. Yes, the TADA is a powerful lobby, and a suggestion posted earlier that it would serve the state, its citizens, and the dealers well for Tesla to meet with all potentially impacted interests is a great idea.
    6 Jun 2013, 09:35 AM Reply Like
  • TXjak
    , contributor
    Comments (4) | Send Message
     
    @jerseycitymoe: You sound like a dealer. I know of no one other than dealers, and their associates, who like to go to a dealer do buy a car, much less for service. The dealerships will go the way of the livery stable, by and by.
    4 Jun 2013, 03:23 PM Reply Like
  • chschapira
    , contributor
    Comments (3) | Send Message
     
    Why are auto sales different than other sales commerce?

     

    Apple, Sony, Microsoft, Levi's, MAC Cosmetics, Lane Furniture, Ashley Furniture, American Apparel, Ann Taylor, Bose, etc. Just about any retail manufacturer sells directly to the consumer.
    4 Jun 2013, 04:01 PM Reply Like
  • alset
    , contributor
    Comments (12) | Send Message
     
    The greatest thing about buying a Tesla direct from Tesla is that you are paying the exact same amount for your car that everyone else pays for the same options. No come ons as to cash back, credit cards payed off, free IPads etc.etc. Television ads do not even tell you anymore what the vehicle does cost.
    Actually it is not all bad that these stupid states are giving Tesla a fight...isn't it funny how people love to but things they aren't allowed to buy.
    Tesla Motors is the best business model ever.
    4 Jun 2013, 04:25 PM Reply Like
  • AndyMahnFL
    , contributor
    Comments (53) | Send Message
     
    ...and the cavemen gradually EVOLVED into more advanced, more intelligent forms... very gradual, but no doubting it, having left behind nothing but evolutionary ancestral skeletons and fossils.
    4 Jun 2013, 08:41 PM Reply Like
  • 123man
    , contributor
    Comments (1148) | Send Message
     
    caveman - fast forward to Starship Enterprise = ford, chevy, chrysler fast forward to Starship Tesla - I vote for Tesla and their sales model, all day, every day - and if Texas doesn't like it they can leave - not the good Texas folks, just their beholden legislature -
    6 Jun 2013, 10:07 AM Reply Like
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