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05/15/2024 06:03:25 am

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Tesla Motors Pushing For Car Sales Reform In Texas

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(Photo : Reuters) Tesla Motors is looking to get the laws changed in Texas, to allow the car manufacturer to sell directly to the customer.

Tesla Motors is having a hard time winning over states, who will not allow the electric car manufacturer to sell directly to the customer.

Even though Tesla has had a few small victories, it is clear the road ahead will not be smooth. Texas is the next on the list, according to Tesla's vice president of business development Diarmuid O'Connell.

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Tesla already sells the Model S in Texas through traditional dealerships, but wants to give customers the opportunity to buy it directly from Tesla stores. O'Connell argues "We're not asking to blow up the franchise dealer system. We are looking for a narrow and reasonable window to be able to promote this new technology ourselves."

Governor Rick Perry claims it is time "Texas have an open conversation about this", citing market differences between electric and gas cars. Tesla argues they do not compete or function the same way as gas powered cars and should be liable to have their own showrooms to sell vehicles.

Tesla has said some dealerships are incapable of showing the full amount the Model S has to offer, including savings on electric compared to gas and the internal software system.

Texas may have been more open to Tesla's dispute, if the Gigafactory plant had come to Texas. Instead, Tesla chose Nebraska to build its battery factory, where it will produce all the necessary power for electric cars.

The Gigafactory will bring hundreds of jobs into the state, but Texas will unfortunately not be able to offer these jobs. Tesla has not said anything about a second Gigafactory, meaning it is unlikely Texas will get anything out of the change in law.

Michigan, Arizona, Maryland and New Jersey have all banned online sales of Tesla Model S cars, creating a new law for cars to only be sold through ordinary dealerships. Tesla wants to get these laws overturned, but some states seem unwilling to come to the table.

The Model S is only the first in a line of Tesla Motors electric cars. The Model X is coming in 2016 and the Model 3 in 2017. Once Tesla has a full line of products - at different price ranges - it may become more of an issue for the company to not be able to sell directly.

Tesla is one of the first car manufacturers to actively promote online sales, instead of going to car dealerships. Most car manufacturers either have their own dealerships or work with various partners in the U.S. to gain maximum traction, but Tesla is breaking the rules to make customers feel more comfortable buying an electric car.

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