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.