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
Not just Tesla.
4/12/2013 2:23:13 PM
"a representative for the Texas Auto Dealers Association, said that the law shouldn't be changed just for the sake of one manufacturer."
Uhh, it wouldn't be. EVs are an emerging market with many potential manufacturers. By not changing the law, you limit it to existing vehicle manufacturers despite the fact that existing vehicle have traditionally been a completely different technology that it threatened by the new one. That's like going back to the days before ubiquitous electrical power and requiring you to buy electricity from the gas utility company instead of allowing new utility companies to exist and sell direct and then justifying it. Now the new electric tech must be sold to you by the purveyors of the technology it competes with.
"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg
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
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
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
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 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information