Why Texas bans the sale of Tesla cars
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Why Texas bans the sale of Tesla cars
Posted by olemc999 on 8/22 at 4:57 pm
quote:

To answer that, first you need to meet Tesla CEO Elon Musk. He plans on opening 50 new Tesla stores in the next year. And taking a page from the Apple playbook, Musk is selling his product directly to consumers. No hard sell. No commission for employees. And uniform prices at every store.


quote:

“It takes them at least twice as much effort to sell someone an electric car and to educate them as to why an electric car is good,” said Musk. “And so if we were to go through the traditional dealer path, the result would be a disaster.”


quote:

“This happens all the time,” said Bill Wolters, the president of the Texas Automobile Dealers Association. “Someone wants an exception to the franchise laws. If we made an exception for everybody that showed up in the legislature, before long the integrity of the entire franchise system is in peril.” The outcome of the battle remains to be seen, but it’s just one of many standing in Musk’s way of the Model S becoming a mainstream success. For all the hype, only 20,000 have been sold.


Why Texas bans the sale of Tesla cars



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Posted by Taxing Authority on 8/22 at 5:00 pm to olemc999



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Posted by gatorrocks on 8/22 at 5:02 pm to olemc999
Kind of reminds me of the "three tier system" for beer sales.

It's not needed anymore (it was created after prohibition) but because a shite load of money is made and big "beer" companies control it, it won't go away.

Basically, the law says that if I'm a microbrewery, I can't sell my beer outside of it. I have to go to a middle tier distributor and beg / bribe them to distribute my beer. Which is asinine.

Same thing here. Believe me, the big car dealers are shitting their pants because of Elon Musk. And they should be.

BTW, nothing is stopping Texas residents from going to LA or OK or NM and having the car shipped in.



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Posted by Purple Spoon on 8/22 at 5:02 pm to olemc999
So if I get it, someone has a business model that is potentially better than everyone else's and the other guy is scared it may catch on so wants government to intervene?

I would not support his cause.



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Posted by Taxing Authority on 8/22 at 5:03 pm to gatorrocks
quote:

BTW, nothing is stopping Texas residents from going to LA or OK or NM and having the car shipped in.
Theres a showroom 250 yards from my office.



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Posted by skinny domino on 8/22 at 5:06 pm to olemc999
Kind of like in Louisiana with the coffins and flower arrangers. Got to be a funeral home to sell coffins and a registered florist to arrange flowers.


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Posted by BlackHelicopterPilot on 8/22 at 5:07 pm to olemc999
quote:

“This happens all the time,” said Bill Wolters, the president of the Texas Automobile Dealers Association. “Someone wants an exception to the franchise laws. If we made an exception for everybody that showed up in the legislature, before long the integrity of the entire franchise system is in peril.”




Sooooo....it is important we uphold the Franchise rule otherwise the Franchise can't survive.


JEEBUS.



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Posted by Rex on 8/22 at 5:15 pm to olemc999
quote:

the integrity of the entire franchise system is in peril.



That's a bad thing?



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Posted by olemc999 on 8/22 at 5:18 pm to Taxing Authority
quote:

Theres a showroom 250 yards from my office.


No frickin way



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Posted by Taxing Authority on 8/22 at 5:19 pm to olemc999
quote:

No frickin way
I walked by it at lunch



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Posted by gatorrocks on 8/22 at 5:21 pm to Taxing Authority
BTW - I love Teslas. They completely rebuilt the engine. Freaking sweet technology.


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Posted by GumboPot on 8/22 at 5:56 pm to gatorrocks
quote:

Kind of reminds me of the "three tier system" for beer sales.


Yeah it's the same for wine and spirits. The only state that you can sell retail without the middle man is Washington State. However Washington State has the highest state excise taxes in the nation. Also, the wineries/breweries/distilleries in WA rarely sell directly to retail. They leverage the distributors existing contacts. What's really f'd up are states like GA. In Georgia once you pick a distributor you are married to them for life. There is no other way to get your product to market but though the distributor you initially pick. Then you have the issue of control states versus non-control states.

It's going to be interesting if federal legislation is passed that will allow the postal service to ship alcohol via snail mail. That will no doubt have major conflicts with some states existing laws.

But I digress.

/hijack



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Posted by sugar71 on 8/22 at 6:56 pm to GumboPot
But not banned in New York nor California?

I thought Red States & the Rick Perry's of the GOP were all for Private ingenuity ?

More like protecting their wealthy interests(like big oil & now car dealers) from a little competition .









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Posted by Asgard Device on 8/22 at 7:10 pm to olemc999
so how much money will musk have to use for bribes.. I mean lobbyists in order to gain economic freedom in Texas?


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Posted by ForeLSU on 8/22 at 7:22 pm to GumboPot
quote:

In Georgia once you pick a distributor you are married to them for life. There is no other way to get your product to market but though the distributor you initially pick.


must be why the Chili's in Dalton was out of Dewars this week...



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Posted by ForeLSU on 8/22 at 7:23 pm to Purple Spoon
quote:

So if I get it, someone has a business model that is potentially better than everyone else's and the other guy is scared it may catch on so wants government to intervene?


Free Enterprise Baby!!!



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Posted by Ambassador on 8/22 at 8:24 pm to skinny domino
Same with mobile kitchens. The rules have changed dramatically to get a mobile unit permitted in Louisiana. I was told directly from a health department official that Baton Rouge wants to put mobile units out of business.

They said that there has been such a large influx of mobile units in New Orleans and Baton Rouge that the restaurants are screaming bloody murder. So now the Louisiana Restaurant Association has influenced the regulations in an effort to force mobile units out of business.



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Posted by bayoubengal03 on 8/22 at 8:49 pm to olemc999
In the home of capitalism....... Say it ain't so


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Posted by OldTigahFot on 8/22 at 9:03 pm to Asgard Device
quote:

so how much money will musk have to use for bribes.. I mean lobbyists in order to gain economic freedom in Texas?


Musk has a lot of ammo in this fight. South Texas is one of the leading candidates for a huge commercial space launch sites that Musk is proposing. Texas legislature would be stupid to let that investment go elsewhere.




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Posted by cwill on 8/22 at 9:05 pm to olemc999
quote:

“This happens all the time,” said Bill Wolters, the president of the Texas Automobile Dealers Association. “Someone wants an exception to the franchise laws. If we made an exception for everybody that showed up in the legislature, before long the integrity of the entire franchise system is in peril.”


I bet ole Bill hates Obama and big gov and loves to say "free market!"



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