Tesla Receives Big Blow In Texas Market, Cannot Sell Cars Directly

Tesla Receives Big Blow In Texas Market, Cannot Sell Cars Directly
the Tesla has landed Steve Jurvetson / Flickr CC BY 2.0

Tesla has received a big blow in the retail auto market of Texas. The company is not allowed to sell cars directly to buyers in Texas and would have to depend on auto dealers for such. This happened after legislation failed to pass state legislature though both parties were in support.


According to Autoblog, the deadline was missed, which killed top priority bills for both the parties, this one being really significant to Tesla. The deadline saw Tesla in trouble.

The last date for the bill to get full chamber approval is over, though the bill is not truly dead until the session ends on June 1. It can be served as an amendment to other bills, but the chance of approval is thin.

The current law of the state would not allow having a price tag displayed on test drives and the chance of Tesla to make customers sit on an electric car of its own is gone. The current bill is to protect franchises that operate in the state.

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Tesla, unlike other car manufactures, sells cars directly to buyers instead via franchises, but if the condition persists, the company will have to go the other way round.

Democratic state Rep. Senfronia Thompson said, criticizing the company, “It would have been wiser if Mr. Tesla had sat down with the car dealers first.” However, Tesla is handled by Elon Musk these days and now it is his duty to see how things will go.