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
RE: What free market is this?
4/11/2013 8:04:50 PM
Exactly, the dealer franchise is one of the greatest cost savings to the manufacturer, the dealer has to pay for the facilities, pays for the staff, pays for training, pays for all the vehicles in full under a floorplan loan, pays property taxes as well as other local taxes, and to have the privilege of all this pays a franchise fee and must abide by the manufacturers rules or risk having their dealership pulled.
Why would a manufacturer even think of owning a dealership?
RE: What free market is this?
4/12/2013 6:53:40 PM
Because Tesla wants to cut out the middleman, the dealership may seem cheaper on paper, in practice because of laws like this it gives the dealership tycoons a lot of bargaining power. The price can be inflated by quite a bit by the time you see the sticker on the side of the window.
Tesla wants to sell direct because there would be a conflict of interest with dealerships, the dealers want to make as much money as they can, Tesla vehicles are unproven in that regard, so they wouldn't try very hard to sell them. Putting Tesla in a catch-22 situation.
"Folks that want porn can buy an Android phone." -- Steve Jobs
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
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
BMW Testing Tech to Allow Users to Auto-Park, Summon Cars Via Smartwatch
December 16, 2014, 9:30 AM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Quick Note: GM Teases Next Generation Chevrolet Volt
November 20, 2014, 3:26 PM
Audi is Latest to Step Into the Hydrogen Game, Delivers A7 Sportback h-tron quattro
November 19, 2014, 1:41 PM
Toyota’s Mirai Hydrogen Fuel Cell Vehicle Priced from $57,500 in the U.S.
November 18, 2014, 10:23 AM
Most Popular Articles
Microsoft Shows Off Latest Windows 10 Build, Preps it for Next Week Release
January 21, 2015, 2:57 PM
Under the Hood: How DirectX 11.3 and 12 Will Supercharge Windows 10 Gaming
January 23, 2015, 12:34 PM
IDC: 2014 Sales Show PC Isn't Dead, But Desktop May be Dying
January 19, 2015, 1:50 PM
Police are Using New Handheld Radar Sensors to Peer Into Houses w/out Warrant
January 20, 2015, 1:35 PM
Report: HTC One M9 (2015) is Tied to Under Armour-Powered HTC Smartwatch
January 19, 2015, 11:10 AM
Latest Blog Posts
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
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information