Tesla is building a factory in Texas to produce some of the cars. But once activated, the cars manufactured there may have to make a detour to get to Texan buyers (via The driveBecause state law prohibits car companies from selling directly to consumers, Tesla can ship cars from Austin factories to other states before sending them back to Texan buyers. Will prevent the situation But now they have missed the chance to get past it before it had to take a break until 2023.The plant is expected to be completed by the end of 2021.
Laws that prevent automakers from selling cars directly to consumers, not just in Texas, and not targeting Tesla: They were originally adopted in many states to prevent manufacturers from undercutting agents. Selling their franchises and quitting their business, Tesla has no franchise dealer to protect. But that doesn̵7;t matter with Texas law as it is written today.
It’s an embarrassing situation for a state where new factory workers (where Tesla plans to invest billions of dollars) have to wait for the cars they built to travel to dealers in the other state to operate and then return. Go find them. That might be the case with Elon Musk himself, who said he moved to the state earlier this year. It’s also a little embarrassing for Tesla to decide to build a factory in the state without a deal to sell its cars there.
There is a bill proposed in the Texas Legislature that appears to be tailored to help Tesla: It would allow companies to sell cars directly to consumers if they are powered by electricity or battery power. complete and Only if those companies never had a franchise dealer in their state. That could cut companies like Ford, although selling EVs, could allow other EV manufacturers like Rivian, Lucid and Canoo to sell directly when they start producing vehicles.
Tesla and other EV manufacturers have been battling in multiple states for direct sales for years, and have had some success in the last few times: Tesla was authorized to sell in Colorado. (Which Rivian was recently able to reach too) and Tesla was able to find legal loopholes in Michigan in as many as 12 states, allowing Tesla to sell directly to customers, and so on, allowing Tesla to open a dealer in Michigan. Limited number
But there are states where hopeful buyers still have to cross the loop, such as having to send documents across state borders to get a temporary tag or drive to another state to make a purchase: Oklahoma, Nebraska, Wisconsin. West Virginia, South Alabama Carolina, New Mexico, and of course, Texas are all offering direct sales. But all of the bills have been shut indefinitely or have been ignored for years.Tesla also has a page on its website asking customers to engage with elected officials in these cases.
Connecticut, another state that doesn’t allow direct sales. (Although Tesla can rent cars to customers there), there are currently working laws to authorize direct sales, and Tesla and Rivian are working together to try and enact legislation in other states for the year as well. Have found a way to deliver cars to customers But it’s not complicated
For Texas, however, waiting for the legislation to take place may take some time, Elon Musk tweeted in response. The driveLawmakers timed the article, pushing for change in the state. It’s impossible to have happened even if the Legislature took a break until 2023: Governor Greg Abbott (who called Tesla “one of the most exciting and innovative companies in the world” when announcing a factory in Tehran. Lexus) can be called a special range to Focus on the law that has not been passed. Abbott did not respond to requests for comment on whether he intends to do so.
Tesla is sure to be happy with the change in law, so it doesn’t have to!
– Elon Musk (@elonmusk) May 27, 2021
It is also possible that a legal loophole could be created, for example in Michigan. However, it appears that Texas lawmakers are in no rush to go that route: Tesla tried to win the rights to sell cars directly to the Texans in 2013 and 2015, and lost both.