Tesla's Elon Musk Fights for Texas Electric Vehicle Sales Bill
April 11, 2013 12:52 PM
comment(s) - last by
Tesla CEO Elon Musk
This bill would allow Tesla to sell directly to customers without dealerships
Tesla CEO Elon Musk has been showing his support for an
electric car sales
bill in Texas, which he referred to as a "life or death" situation for companies like Tesla.
Musk testified Tuesday for House Bill 3351, which would allow distributors and manufacturers of electric vehicles (EVs) only to sell directly to customers without the use of dealerships. The bill was filed by Rep. Eddie Rodriguez (D-Austin).
“For us this is life or death,” said Musk. “If we can’t go direct we will not be able to sell cars.”
However, auto dealers don't seem very happy about this decision. Carroll Smith, a representative for the Texas Auto Dealers Association, said that the law shouldn't be changed just for the sake of one manufacturer.
Musk is open to a dealership model at some point when sales increase, since dealerships do promote competition and keep prices down.
Tesla currently sells about 10,000 cars in North America, where about 1,500-2,000 are sold in Texas.
Tesla is shipping over 500 Model S EVs weekly, and recently reported that
the company is now profitable
thanks to the Model S exceeding sales targets. Tesla Model S sales reached 4,750, which topped the sales outlook of 4,500 posted in the February shareholder letter.
In addition, the automaker is partnering with Wells Fargo and U.S. Bank to offer customers more financing options for Tesla’s vehicles.
Clearly, Tesla is sitting in a nice position right now, but the Texas bill could certainly help reach sales goals.
Austin Business Journal
This article is over a month old, voting and posting comments is disabled
4/11/2013 4:09:07 PM
...and in the meantime? You know how long things can drag out in court.
By all means, work to change a law that you think doesn't make sense. Personally I don't think it makes sense either.
But for all the effort it would take to open one token dealership in TX? Just do it, and be able to sell your cars in TX the whole time.
4/11/2013 4:37:38 PM
According to the other post here Tesla can't just open a dealership since they can not be a dealer and a manufacturer.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
Tesla Motors Now Profitable, Drops 40 kWh Model S Battery Option
April 1, 2013, 10:02 AM
Tesla Now Shipping 500+ Model S EVs Weekly
March 22, 2013, 12:03 PM
2017 Porsche Panamera: I’ll Take Three of These.
July 24, 2016, 6:44 PM
Ford, Toyota, and Universal Pictures Celebrate "Back to the Future Day' in Style
October 21, 2015, 4:19 PM
Consumer Reports Flexes Muscle, Hits Slumping Tesla Motors Stock
October 20, 2015, 4:13 PM
Debunked: Beneath the Lies, Nigerian "Pee Generator" Is Still Pissing Into the Wind
October 19, 2015, 7:53 PM
Hot Air? President Obama, G7 Pledge to Eliminate Most Fossil Fuel Use by 2100
June 8, 2015, 5:40 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Most Popular Articles
iPhones May Get Curved Screens Next Year
August 24, 2016, 6:45 AM
Drones at the Airport
August 26, 2016, 5:00 AM
First Apple Computer Auctions for $815,000
August 27, 2016, 7:51 AM
5 Easy Ways to Lower Blood Pressure By Monique C. Bethell, Ph.D.
August 25, 2016, 8:00 AM
2 NEW PlayStation 4 Models - Unveiling September 7th
August 23, 2016, 6:23 AM
Latest Blog Posts
First Self-Driving Car debut on the streets of Singapore
Aug 28, 2016, 4:10 PM
Coming Soon - Drones and Airports
Aug 24, 2016, 12:40 PM
SolarCity’s Gigafactory: A Milesone in Emerging Technology by Lily Emamian - 15 August 2016
Aug 15, 2016, 6:30 AM
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information