Tesla CEO Elon Musk urging lawmakers to allow direct auto sales in Texas

Apr 10, 2013
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Tesla CEO Elon Musk urging lawmakers to allow direct auto sales in Texas

Tesla Motors currently has over 50 locations around the world, and it seems that the company wants to focus on sales in the US. However, the only state that isn't allowing Tesla to build their own dealerships in Texas. In the Lonestar State, the law says that auto makers must go through a third party in order to sell its vehicles, but Tesla CEO Elon Musk doesn't want it that way.

Musk is urging to lawmakers in Texas to pass legislation that would allow electric carmakers to sell directly to consumers, rather than using a franchised car dealership. Musk attended a news conference today in Austin, and said that current laws requiring cars be sold by third-party dealerships is hurting Tesla.

Texas is particularly important in this case, because it's estimated that the state would make up between 15% to 20% of Tesla's total sales in the US, but the chances of the law getting reversed is slim to none, as a majority of auto dealerships in Texas are opposed to the law changing, and that's bad news for Tesla.

In the meantime, if a Texas resident wants to buy a Tesla vehicle, they have to contact a company representative in another state to arrange a purchase of the car, as well as arrange shipping the car to the Texas resident's house, which doesn't seem too complicated, but having physical locations in Texas could potentially increase Tesla sales in the state.


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