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Tesla relaunches lobbying effort in Texas.

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RobStark

RobStark

Well-Known Member
Jul 2, 2013
11,916
61,537
Los Angeles, USA
#1
AUSTIN, Texas (AP) — Tesla passed on Texas as the site of its new $5 billion battery factory, but the company still hopes to sell its electric cars directly to Texans over the Internet, instead of through dealerships, and it is dangling the carrot of future investment projects as an incentive.

The automaker doesn't use outside salesmen or franchised dealers to sell its cars because it says they have too much invested in promoting traditional, gasoline-powered vehicles. The practice is prohibited in Texas and at least somewhat restricted by many other states' laws on new vehicle sales.

Proposals to allow direct car sales in Texas stalled during the 2013 legislative session, but the Pala Alto, California-based automaker appears poised to rev up efforts to revive the issue as lawmakers head back to work next month.



http://www.mysanantonio.com/news/texas/article/Tesla-wants-Texas-auto-sales-regulations-loosened-5941329.php
 
#4
bluenation said:
arguably one of the strongest reasons for supporting tesla: break the dealer cartel and offer a choice to order a car like you would a computer/phone.

very happy to see these efforts.
Click to expand...

In Texas we do order a Tesla the way most do a computer or phone, that is, online. What is now illegal and we want to make legal is buying one at a physical location in person for those who prefer to shop that way. But I agree with your sentiment, buying the car without going through the dealer cartel is one pleasures of buying a Tesla.
 
#5
TexasEV said:
In Texas we do order a Tesla the way most do a computer or phone, that is, online. What is now illegal and we want to make legal is buying one at a physical location in person for those who prefer to shop that way. But I agree with your sentiment, buying the car without going through the dealer cartel is one pleasures of buying a Tesla.
Click to expand...

Yes, that has to be worth at least 10% of the price.
 
#6
Having owned my Model S for 17+ months, I can confidently say I will never buy an ICE vehicle again. That's not an uncommon sentiment among other Tesla owners I have met. But I have also decided I will never buy a car through a dealer again. That may limit my choices to only Tesla when I am ready to buy my next car, but I am OK with that.

Actually I hope there will be other viable EV's on the market by that time. Competition is good. But to really compete with Tesla, the big OEM's will have to find a way to match the buying/ownership experience offered by Tesla's direct sells model. I cannot imagine how that could be accomplished through their current independent franchised dealerships.
 
#7
Phoster said:
But to really compete with Tesla, the big OEM's will have to find a way to match the buying/ownership experience offered by Tesla's direct sells model. I cannot imagine how that could be accomplished through their current independent franchised dealerships.
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That is exactly why the dealers are fighting Tesla so hard. They don't want people to experience there is another way to buy cars, or it's the beginning of the end for them. As the song said, "How ya gonna keep 'em down on the farm, after they've seen Paree?"
 
#8
I hope that Tesla is going in with a very focused ask: that a car manufacturer must choose one distribution channel. If Ford wants dealers, great, but then Ford can't have Ford-owned stores. If Tesla wants company stores, great, but then Tesla can't also grant franchises.

Why I like this approach is that it defangs a lot of what the dealerships are really worried about, which is the OEMs muscling in on their territories. I suspect that few dealers think that Tesla's cars will make much of a dent in their income. If the dealers see that their gravy train will continue to roll, they'll fight Tesla less strenuously.

The second advantage of this approach is that it denies all the established OEMs the chance to emulate Tesla's distribution approach, therefore keeping that key competitive advantage with Tesla. The OEMs can't afford to buy out all their Texas franchises.
 
#9
Robert.Boston said:
The second advantage of this approach is that it denies all the established OEMs the chance to emulate Tesla's distribution approach, therefore keeping that key competitive advantage with Tesla. The OEMs can't afford to buy out all their Texas franchises.
Click to expand...

And this is why the the OEMs have been siding with the dealership groups on this issue.
 
#10
rlang59 said:
And this is why the the OEMs have been siding with the dealership groups on this issue.
Click to expand...

The reason why dealerships are against Tesla is not Tesla at the moment, Tesla makes a very small number of cars currently. It is to prevent this method of buying of any car. If Tesla becomes a major manufacturer in 10 years and sells millions of Model 3 cars, then the dealerships are in trouble. They are trying their best to prevent this mode of selling. However, people can buy cars without going to dealers now by going to fleet sales. Tesla as a car does not require as much maintenance, which reduces need to go to dealers. In Texas, Tesla showrooms are not allowed to give buyers rides, quote prices or advertise. In fact, the truck which brings your car to you cannot have the company logo on it.
 
#11
Robert.Boston said:
I hope that Tesla is going in with a very focused ask: that a car manufacturer must choose one distribution channel. If Ford wants dealers, great, but then Ford can't have Ford-owned stores. If Tesla wants company stores, great, but then Tesla can't also grant franchises.

Why I like this approach is that it defangs a lot of what the dealerships are really worried about, which is the OEMs muscling in on their territories. I suspect that few dealers think that Tesla's cars will make much of a dent in their income. If the dealers see that their gravy train will continue to roll, they'll fight Tesla less strenuously.

The second advantage of this approach is that it denies all the established OEMs the chance to emulate Tesla's distribution approach, therefore keeping that key competitive advantage with Tesla. The OEMs can't afford to buy out all their Texas franchises.
Click to expand...
The dealers aren't concerned about the details. They're concerned that any change, no matter how inconsequential for them, would set the precedent that the franchise law could be changed. They don't want the franchise law put in play, ever, for any reason. That's why the beer distributors and auto dealers cartels work together to prevent change in either industry, because if one law was changed people may think it's possible to change the other one.

I have a patient who used to work for TADA. He said they have two goals every session-- protect the franchise law against any change, and protect their exemption from the blue laws repeal.
 
#13
Franchise laws already prevent franchisors from opening their own stores, that's what they've always done.

What irks me is dealer associations are trying to apply franchise laws to non-franchisors. Wasn't it the NJ ban that literally tried to redefine the word manufacturer to mean franchisor? Dealer associations are saying Tesla is not playing by the franchise rules, but what's actually happening is they are lobbying (and succeeding in some states) to get the laws changed to stop direct sales of automobiles by non-franchisor manufacturers. Oh so you're following the rules, we'll change them and then you'll be wrong.
 
#15
They are holding on to an old protective system which will, in the end, backfire on them. Tesla is already extremely popular and has a very positive image. The more people wanting to buy Teslas in Texas the more they will hate the dealership lobby and other car manufacturers.
If I was in Texas I would let as many people as possible test drive and help them order online :)

Maybe that would actually be a fun event to organize. Not by Tesla, as they are not allowed to, but by us Tesla owners. Have a big get together in Texas, inviting press and the public. Stop by the governor and invite him for a test ride.
 
#18
David99 said:
If I was in Texas I would let as many people as possible test drive and help them order online :)

Maybe that would actually be a fun event to organize. Not by Tesla, as they are not allowed to, but by us Tesla owners. Have a big get together in Texas, inviting press and the public. Stop by the governor and invite him for a test ride.
Click to expand...
Actually in Texas manufacturers are allowed to have test drive events and Tesla does this frequently. They're listed on the web site:
Tesla Events | Tesla Motors
You can see two listed in Austin and one in Houston between now and mid-February. They had been Thursday-Sunday in the past, now I see they're for a whole week at a time. Some owners just happen to stop by the gallery during the test drives and answer questions the product specialists aren't allowed to.
 
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