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Gov. Rick Perry  (Source: Bloomberg)
He said the pros of allowing this would outweigh the cons

Not long ago, Texas told Tesla Motors to take a hike when the automaker wanted to sell its electric vehicles (EV) directly to customers without the use of auto dealers. But it seems that the Lone Star state is changing its tune now that Tesla's giant Gigafactory is on the line. 
 
According to Dallas News, Gov. Rick Perry (R-TX) indicated that Texas needs to take a second look at its state rules -- which he referred to as "antiquated" -- that prevent Tesla from selling its EVs directly to customers. 
 
"Tesla’s a big project,” said Perry. “The cachet of being able to say we put that manufacturing facility in your state is hard to pass up.
 
“I think it’s time for Texans to have an open conversation about this, the pros and the cons. I’m gonna think the pros of allowing this to happen outweigh the cons.”
 
Perry wants Tesla's Gigafactory, which the automaker plans to build in a Southwest state in the U.S. The factory aims to supply batteries for up to 500,000 EVs by the year 2020. The gigafactory would cost $5 billion USD, span as much as 1,000 acres, and employ about 6,500 people. It would also largely be powered by renewable energy. 
 
Four states -- Texas, Arizona, New Mexico and Nevada -- are pushing to become the site for the Gigafactory. Whichever state Tesla chooses will see great economic benefits from the large-scale plant; hence Texas' new view on direct sales.
 
The state realizes that Tesla likely won't choose it if Texas doesn’t allow the automaker to sell its vehicles without the help of auto dealers. 
 
It's possible that Tesla CEO Elon Musk is using the Gigafactory as leverage to get the direct sales laws changed in certain U.S. states, and it looks to be working as Arizona recently passed a bill to allow Tesla to do just that.
 
 
Texas Rep. Jason Villalba (R, Dallas) recently wrote Musk a letter in an attempt to patch things up with the automaker. He said he's a proponent of the Tesla-backed House Bill 3351, and that Texas is the perfect state for the Gigafactory due to its warm climate (for the solar-ran factory) and large labor pool to fill factory positions.  
 
Earlier this month, New Jersey Gov. Chris Christie’s administration proposed a new rule that requires a person to have a franchise agreement with an auto manufacturer in order to be granted a license to sell. Tesla already had two stores in the state at the time. 
 
Shortly after, the New Jersey Motor Vehicle Commission voted in favor of the ban of direct auto sales. This means that the two stores must be turned into showrooms and nothing more after April 1, 2014. 
 
New Jersey is now the third state to ban Tesla's direct sales model. 

Source: Dallas News



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By Dr of crap on 3/25/2014 12:27:30 PM , Rating: 3
And so you have pulled something over your eyes
and can't see how stupid his is now that there is money and jobs at stake that he is NOW changing his mind?

Money talks - and especially for politicians,
maybe you can't see that either?


By retrospooty on 3/25/2014 12:36:27 PM , Rating: 2
Not that I like Rick Perry or anything he stands for, but in this case, I don't think he is wrong. It's OK to look at a new deal or new situation and change your mind on an issue. Like many states in the past, Texas legislators voted for the dealer model laws referenced above. Now, a company that has a new direct to customer model,(no dealer) may build a plant in the state if that law goes away. I would work to kill that law too if it meant jobs and money for my state. How is that bad? OF all the asinine things this clown has said and done, this inst one of them.


By niva on 3/25/2014 6:33:08 PM , Rating: 2
I live in Texas and Rick Perry is an embarrassment to this state. The guy has an iq of a door handle, and I'm insulting quite a few door handles when I say that. I have yet to hear an actual "con" for letting Tesla sell direct from the consumer standpoint.

Tesla should forget about building a factory here, build in a state that guarantees them direct sales and fk Rick Perry.


By jimbojimbo on 3/26/2014 11:44:59 AM , Rating: 2
The problem is they decided they don't want Tesla selling cars directly while the plans for the factory were already presented. Now, if they voted to ban them but Tesla said hey we could maybe build a factory there then they repealed it I could understand that. With the new information they would decide one was better than the other. Since the future factory options were already proposed but then they decided to vote to ban direct auto sales Texas basically told Tesla that banning direct sales is more important than the factory. A few days later after a lot of backlash they thought, oh geesh, maybe that factory is more important.
This just means they are being completely wishy washy and I wouldn't trust them for a second.
With the initial vote they displayed their intent so unless the agreement with building the factory is that the state will never ban direct auto sales I would say screw them.


By retrospooty on 3/26/2014 8:07:58 AM , Rating: 2
I know, why is this so tough for people to get? Whether you like Perry or not, him trying to get this changed and win a factory that means money and jobs for his state. That is what a governor is supposed to do, work toward improving the state and its finances for the betterment of its citizens. In this case, how can anyone possibly disagree with him changing his mind?


By Mint on 3/26/2014 1:04:47 PM , Rating: 2
Precisely. This is exactly what people want from politicians: when the public overwhelmingly wants something, and it supports a politician's campaign principles, then get it done. Flip-flopping is better than blind intransigence.

This is why Musk decided to start this fight. He knew how the public felt about car dealers, and knew how easy it is to sell his position as pro-business.

Some demands from campaign donors aren't worth supporting. Within a couple years, I doubt any politician will want to be seen in the pockets of the dealer associations.


By flyingpants1 on 3/26/2014 2:32:31 PM , Rating: 2
Pretty genius how he highlighted 4 states as canditates for the gigafactory, just to manipulate 'em into reconsidering their laws.


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