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olemc999
Florida Fan
Kauai
Member since Oct 2010
3518 posts

Why Texas bans the sale of Tesla cars

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


Taxing Authority
LSU Fan
Houston
Member since Feb 2010
25135 posts

re: Why Texas bans the sale of Tesla cars


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gatorrocks
Florida Fan
Lake Mary, FL
Member since Oct 2007
10120 posts
Online

re: Why Texas bans the sale of Tesla cars
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.


Purple Spoon
Duke Fan
Hoth
Member since Feb 2005
6798 posts

re: Why Texas bans the sale of Tesla cars
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.


Taxing Authority
LSU Fan
Houston
Member since Feb 2010
25135 posts

re: Why Texas bans the sale of Tesla cars
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.


skinny domino
LSU Fan
sebr
Member since Feb 2007
7624 posts

re: Why Texas bans the sale of Tesla cars
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.


BlackHelicopterPilot
LSU Fan
Top secret lab
Member since Feb 2004
35272 posts
Online

re: Why Texas bans the sale of Tesla cars
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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Rex
LSU Fan
Here, there, and nowhere
Member since Sep 2004
60488 posts

re: Why Texas bans the sale of Tesla cars
quote:

the integrity of the entire franchise system is in peril.



That's a bad thing?


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olemc999
Florida Fan
Kauai
Member since Oct 2010
3518 posts

re: Why Texas bans the sale of Tesla cars
quote:

Theres a showroom 250 yards from my office.


No frickin way


Taxing Authority
LSU Fan
Houston
Member since Feb 2010
25135 posts

re: Why Texas bans the sale of Tesla cars
quote:

No frickin way
I walked by it at lunch


gatorrocks
Florida Fan
Lake Mary, FL
Member since Oct 2007
10120 posts
Online

re: Why Texas bans the sale of Tesla cars
BTW - I love Teslas. They completely rebuilt the engine. Freaking sweet technology.


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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
30467 posts
Online

re: Why Texas bans the sale of Tesla cars
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


sugar71
UCLA Fan
baton rouge
Member since Jun 2012
2624 posts

re: Why Texas bans the sale of Tesla cars
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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Asgard Device
The Daedalus
Member since Apr 2011
7817 posts

re: Why Texas bans the sale of Tesla cars
so how much money will musk have to use for bribes.. I mean lobbyists in order to gain economic freedom in Texas?


ForeLSU
LSU Fan
The Corner of Sanity and Madness
Member since Sep 2003
35791 posts
Online

re: Why Texas bans the sale of Tesla cars
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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ForeLSU
LSU Fan
The Corner of Sanity and Madness
Member since Sep 2003
35791 posts
Online

re: Why Texas bans the sale of Tesla cars
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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Ambassador
LSU Fan
West Monroe, LA
Member since Jan 2004
1014 posts

re: Why Texas bans the sale of Tesla cars
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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bayoubengal03
LSU Fan
Member since Nov 2006
937 posts

re: Why Texas bans the sale of Tesla cars
In the home of capitalism....... Say it ain't so


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OldTigahFot
LSU Fan
Drinkin' with the rocket scientists
Member since Jan 2012
6801 posts

re: Why Texas bans the sale of Tesla cars
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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cwill
New Orleans Saints Fan
Member since Jan 2005
29049 posts

re: Why Texas bans the sale of Tesla cars
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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