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Dealership issues in Texas

First of all, I think it is ridiculous that Texas refuses to allow Tesla cars to be sold in the state.

But here's an idea: why doesn't Tesla build physical dealerships in Texas and lease them to their owners on short-term contracts? Also, instead of passing on profits from selling cars, the dealer could make no profits off of the sale of the cars and instead get a monthly salary. It would be essentially the same as hiring a Tesla store manager and through the short term lease, Tesla could maintain control over the dealership...

NO DEALERSHIPS.

You've describe a store run by a PT employee. Not a dealership by anyone's definition.

Correction, temp employee.

Is not ridiculous Texas is a Tea Party state, anti-Tesla, global climate change denials. They still living in the 1800's

Texas is well known for crooked politics going even before Lyndon B. Johnson (Prez) showed up on the scene. Heck, they wacked JFK and blamed on a nut with a rusty bolt action rifle. They have a history of nearly a century of crooked oil politics.

I imagine Tesla is having all kinds of problems there... not just with auto dealers. They must be giving Tesla a rough time with permits for superchargers too. The good part is that the consumer is going to what is right. In the end the auto dealers will be forced to give up.

Bubba
It is understood by historians who have studied the matter, then VP LBJ was fully aware of the plot against JFK and did nothing about it. Some indications of a meeting with high level oil people who were involved with the conspiracy. I actually met Governer Connally of Texas on a flight back from London years ago. He told me straight out that the Warren report was total fiction. He said the country was taken over by a coup that terrrible day. I have never forgiven Texas (nor the corrupt Dallas police department) for it's sins against the country. Repay Bill Oil for it's terminal Greed. Drive electric.

It occurs to me that if Texas doesn't watch themselves, they're going to find themselves saddled with a suit for Conspiracy, Monopoly and Racketeering with clearly demonstrable collusion.

Cberman stop sounding so brain washed..As a Tea Party member in spirit, I drive a prius and will be getting the gen 3 and eventually a tesla truck or RV.

Marty1234,

+1

I really had to hold my nose to buy a car made in the bankrupt peoples Repiblic of Taxifornia. Love my Tesla but almost didn't buy it because of California politics. This is the state that gave the rest of us Pelosi.

Limited government Liberatarian who runs 100% on solar power and will be buying my fourth pure EV in three weeks.

I hope Tesla builds a manufacturing plant in Texas. Would lower the price of the cars and send a message to the powerful ICE dealers in the state.

So I am looking into the dealership requirements. Turns out there is at least one issue with my idea:

A dealership must own or lease the property where the dealership is located. If the property is leased (as I had suggested under this structure), the term of the lease must be for at least the term of the dealership license (2 years). Looks like the lease must go for 2 years.

You might be able to get around this by building in a termination option for Tesla. Worst case scenario, Tesla is locked in for 2 years with a "dealer". I don't seem to see any other restriction that would prevent this structure from being implemented.

There is no such thing. Some day, maybe, but so far TM policy is that all outlets are company-owned. No commission sales or leasing.

I ordered my MS in Texas last year, received it in January, and have used the local service center several times since then.

Other than a few inconveniences while getting the car licensed and registered in January - haven't noticed any problems because Tesla doesn't have a dealership in Texas.

Once the car is purchased - all interactions are with the service department in a dealership - so the lack of a Tesla dealership isn't really a big deal.

The biggest problem for potential owners is the restrictions on getting test drives. But once the decision is made to purchase the car - ordering through the internet and not haggling with prices with a salesperson - was an improvement over the cars purchased through dealerships here.

I'm much more concerned about Tesla's ability to provide timely software updates, options for retrofitting new features, and the supercharger rollout - than getting Tesla dealerships in Texas.

You Texas bashers act as if Texas is the only State requiring dealers. The truth is there are only 14 states where Tesla can offer direct sales. The laws requiring an advocate for the consumer was written when cars were first made and car makers were screwing their customers.

As with anything that was good and needed at one time in history there has always been a way to corrupt the system and the 36 states with such laws still have these laws because the Auto Dealers have a huge lobby and actively protect our rights as customers from the giant auto makers while keeping their way of life.

Dallas, Who protects us from the dealers ?

Auto Dealers have a huge lobby and use that to extract every dime that they can from the consumer. They use the 4 square method: 4 ways to screw the consumer... (1) vehicle price, (2) down payment, (3) monthly payment and (4) trade in value.

Tesla wants to remove the dealership from the equation, presumably to retain control over the sales process. My idea is a way for them to retain control and comply with the dealership laws.

If you look at the average dealership owner most started out as a salesman.A salesman thinks about himself first.I worked many years as a dealership service technician.Working in a shop where special service tools are missing( the dealer buys them) and the equipment is worn breaks the morale of the service techs.I dont know about how Tesla pays its service techs but most techs are paid on a piece work/flat rate time basis and every minute counts.At the dealerships I worked for it seemed like the owner was more interested in paying his yearly dues at the country club.

During dealership person can check the all conditions of texas and terms policies.If you find any error on it then consult woth your dealer.

Uh, I'm still not understanding all of the conflict, nor how Texas (or any other state for that matter) has any real ability to exclude Tesla from selling vehicles to consumers/commuters in Texas.

The reason for my confusion being the fact that any effort on a dealership's behalf (let alone a "consortium" of dealerships) to attempt to block another automobile dealers' ability to distribute their product would constitute an effort on their behalf to "monopolize" the local consumer market(s) in direct violation of the "Sherman Antitrust Act" which, in turn, amounts to a clear cut, de facto case of a "conspiracy to deprive" (complete with demonstrable "collusion" on behalf of all contributing dealerships by their participation in such an effort), which is actionable in any court of law under the "RICO Act" for "conspiracy to deprive" and, in particular, "racketeering".

If I were Texas, or any other state that would seek to prevent Tesla's from being sold in their states, I would STFU before I had my ass handed to me.

Tesla does not need nor require a state-based, brick and mortar dealership in order to sell its products to consumers within whichever given state, period!

P.S. Please excuse the slip of rhetorical etiquette, I just have a real problem with belligerence and ignorance, not to mention the efforts of those intent upon depriving others of something that would be beneficial to them out of some selfish sense of self preservation as though everyone should have to sacrifice their needs for the sake of one.

After dealing with "Texas business ethics" for decades none of this is surprising...I am so glad I do not have to deal with that Randian Liberterian hell anymore.

Maybe Tesla should build a factory and build their latest models in Texas. It would bring jobs, boost the Texas economy, and provide a way for Texas Tesla owners to get their car serviced. They still don't have to build dealerships. Just the cars. Also, the brand is still building loyalty.

I would like to see Tesla build their next factory in a state that neighbors Texas. Just to send the message loud and clear.

@just an allusion: Are you a lawyer? Just wondering, 'cause you seem awfully certain that the various states that have auto franchise laws are violating the Sherman Antitrust Act and/or RICO.

A law does not have to make sense to be "legal". I'd love to see these franchise laws overturned, but I doubt the case is quite as clear-cut as you make it to be. Surely Tesla has their own highly-paid lawyers looking into such things, and I haven't heard of any such suits being brought against the states yet.

@Dramsey

I wear many hats as I've come to appreciate the necessity of knowing the knowing of many things given my business and personal interests, just depends on the situation.

The long story short with Texas is that it is incredibly unrealistic to insist that every product manufacturer maintain a franchise/contract with a franchisee within their (Texas') borders and/or distribute their products through a third party agent.

Just imagine imposing a law that restricted the sale of any item, from air fresheners to zippers and everything in between, within the borders of a state UNLESS the product's manufacturer had a factory or distributorship/contracted with a third party within those borders to distribute the manufacturers goods.

This is where "Racketeering" comes in.

This places an unreasonable financial burden on the prospective purchaser (typically starting @ 6% and going up over and above the actual vehicle cost) and on the manufacturer by having to operate through a proxy.

This is where the "Sherman Antitrust Act" comes into play, and with the other states that have signed on to prohibit the sell of Teslas within their states, well, that's "collusion" that demonstrates a "conspiracy" to deprive.

Lastly, granted, we typically son't hear of such suits as they are often handled behind the scenes with little more than a simple "Letter of Dunning" that outlines the parameters of the complaint that would be pursued should the offending agent not relent.

Since the Texas legislature only meets 4 months every 2 years, now's the time to start building support - before the elections next fall - and before the new legislature starts planning the bills for the next session.


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