Prominent car dealer supports Tesla sales in Texas

Apr 30, 2013
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Prominent car dealer supports Tesla sales in Texas

While Tesla has several car dealerships located around the US, some states still aren't letting the company in (including Texas and Virginia) since they require that cars be sold through a middle man, and without the middle man, car dealers wouldn't make any money. However, a prominent car dealership in Houston is speaking up by saying that the ban on Tesla should be lifted in the state.

A long time ago, car dealers ended up getting their state lawmakers to pass legislation that would ban the direct sale of cars straight from the manufacturer. This was a precaution to prevent auto makers from undercutting the car dealers. However, Sterling McCall, who is a popular retired car dealer based in Houston, says that this kind of ban is hogwash.

McCall says that "we ought to welcome competition -- and the innovation -- that Tesla brings, just as dealerships already compete to sell more gas-powered, hybrid and natural gas vehicles from the country's larger manufacturers." McCall continues by saying that this is essentially something that the public wants.

However, it'll be a hard fight Musk and company, as Tesla was recently denied a dealer license in Virginia for the same reasons that they can't sell cars in Texas. Musk is currently urging lawmakers to introduce a new bill that would either reverse the ban, or simply allow direct sales in these states.


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