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Tesla Event in Texas!

Tesla Event in Texas!

Com'on guys, you WILL sell thousands of Tesla's in Texas. We have to get a Tesla Dealership in the Dallas/Ft. Worth Metroplex and our other large city's. I saw no Tesla Events slated for Texas. Texas is a market you definitely want to enter if you want to make the company grow.

mnx | 20 May 2011

I think I read somewhere that the laws in Texas don't allow for a manufacturer owned car dealership....

ChosenDFW | 20 May 2011

I am in DFW and would definately buy one

ncn | 22 May 2011

"I think I read somewhere that the laws in Texas don't allow for a manufacturer owned car dealership...."

Correct. This makes it practically impossible for Tesla to open a store in Texas. They could open a showroom and point you to the Internet for purchases, maybe, but even that isn't clear.

Supergreekster | 23 May 2011

Agreed! Texas needs dealer!! Work some legal magic, sell them out of a mobile 18 wheeler (trunk)!!

And at least set up some service locations!!

santana338 | 23 May 2011

Can someone point me to the law that says a manufacturer can't own a dealership in Texas? I know that dealerships are generally owned by someone other than the manufacturer. If this is a state law, it needs to be changed. Independently owned dealerships were shrunk significantly when GM went under. Wonder why? They aren't needed as much anymore.

I want a Model S. If I have to order it online and pick it up from the car hauler at a parking lot at DFW I can do that.

The only thing I saw about dealer licensing was this on

http://www.dmv.org/tx-texas/buy-sell/car-dealers/dealer-licensing.php

Franchise Agreements for Selling New Cars

In addition to the GDN requirements, new car dealers also need to have a franchise agreement with the manufacturer of each make of new car they sell. This doesn't apply to used car dealers, who can sell any make and model.

So maybe I need to be the DFW area Tesla dealer. I can do that!

ncn | 24 May 2011

I can't point you to the law, but it's referenced in Tesla's annual report and 10-Q.

dsm363 | 26 May 2011

I can't find it either but it exists. Write your state representative telling them you want this changed or at least an exemption made for American based EV car companies.

santana338 | 26 May 2011

So Tesla does not want to go with the traditional dealer network, but own the retail showrooms too. I guess they are not content just changing the automotive drivetrain technology from ICE to EV, they want to change the retail side of the industry too. Good for them!

This whole dealer thing is obsolete. How they got states to require their existence and prevent direct competition from the manufacturers is probably a good story.

Is Tesla actively lobbying to change these state laws or are they hoping there are enough potential buyers out there that someone else will force a change?

Brian H | 27 May 2011

I suspect the dealer requirement was to control monopolistic price-fixing, etc. It has the advantage of providing more business opportunities for individuals, also. It's not necessarily a good thing for everyone to be an "employee" of the big boys, you know.

txjak | 3 June 2011
txjak | 3 June 2011
txjak | 3 June 2011

INAL, but maybe someone can look this up ...

In November of 1999, the Texas Department of Transportation determined that Ford’s website violated provisions of the Texas Motor Vehicle Commission Code which made it unlawful for a vehicle manufacturer or distributor to operate directly or indirectly as a dealer or obtain a license to do so. (TEX. REV. CIV. STAT. art. 4413(36), §§ 4.01,4.06(a)(3), (6) & 5.02C(c) (Vernon 2002); TEX. TRANSP. CODE § 503.021 (Vernon 2002)).

Jasonbodor | 3 June 2011

I live in the Dallas Fort Worth area and I am very interested in purchasing a Model S when it comes out. Having at least a repair facility that is within driving distance would be nice I will be more than happy to pick up my new Tesla in a different state but a dealer in the Dallas Area would be 100 times better.

jagowar | 3 June 2011

This needs to happen. I live closer to Houston than Dallas but we at very least need repair centers in Texas. I would be considering a model S but I feel like I would already be taking somewhat of a gamble with the first generation of a brand new car. Having the nearest service location being 1000 miles away (and none of the local shops would have even a clue about the tesla's systems) is a scary proposition.

txjak | 3 June 2011

It will be interesting to see if the Tesla tour comes to Texas.

http://www.teslamotors.com/models/tour

txjak | 3 June 2011

As far as service goes, Tesla has announced that the "Telsa Rangers" will make house calls in the US.

Brian H | 5 June 2011

I gather TM will be separating dealer and service locations in the future, so perhaps a service center or two or ten in Texas would work, even if the dealers were elsewhere.

txjak | 5 June 2011

Since IANAL, this is just my opinion, but even though Texas prohibits manufacturers from operating as dealers within the state, the law appears only to cover the distribution and sale of motor vehicles here, not repairs or service. [ http://law.justia.com/codes/texas/2005/oc.html ]

That leads me to the conclusion that while Tesla may provide service here, they won't be making direct sales or shipping cars directly here. Bringing the tour here may be iffy too.

That said, I expect that, like the roadster owners already here, we will be able to get our sedans and other Tesla vehicles delivered to us. We may have to legally take delivery from Tesla in another state (Tesla ships FOB to that point) and make arrangements with a third party to deliver it to us. There is precedence for this as long as Tesla is not found to be performing the role of a dealer in Texas. [ http://bit.ly/iqIj9i ]

YMMV :-)

stretchrunner | 5 June 2011

Well guys correct me if I am wrong we have a Toyota plant right here in San Antonio Texas....If Toyota figured a way out to have a plant here...Im sure Tesla is on top of it!!

Go Tesla, You make the best electric car bar none....So join us here in Texas and make it happen!!

Come to San Antonio and I will even come to work for you guys and sell them til the cows come home. :) See ya soon!

ncn | 6 June 2011

Tesla can almost certainly open a service center in Texas.

But when you first buy your car, you may have to buy / pick up your car in another state and drive it back. The Dallas/Fort Worth market can be supplied from OK, the Houston market from LA, and the El Paso market from NM.

As for people in San Antonio, Corpus Christi, and Laredo, maybe Tesla will open a store in Mexico. :-)

txjak | 6 June 2011

@stretchrunner: Tesla could operate a plant in TX, but that wouldn't let them own a dealership any more than Toyota can. Toyota dealerships are franchises, not owned by Toyota.

stretchrunner | 7 June 2011

@Txjak, True and you are correct, but my point is if it is working for toyota, your telling me that with this market wide open that tesla is not interested in Franchise offering.

I do not know much on franchise offerings but ,why can we not have franchise Tesla as Toyota has done here in San Antonio.

Volker.Berlin | 8 June 2011

why can we not have franchise Tesla as Toyota has done here in San Antonio (stretchrunner)

Technically, Tesla could probably run a franchise model, but they do not want to, at least not at this moment. It is explained here:
http://www.teslamotors.com/blog/stop-go-electric

VolkerP | 8 June 2011

"As for people in San Antonio, Corpus Christi, and Laredo, maybe Tesla will open a store in Mexico. :-)"

Tesla can employ the same strategy like casinos in Louisiana: it's not allowed on the soil, so build it on piles near the shore...

txjak | 10 June 2011

The http://www.teslamotors.com/blog/stop-go-electric article also says that they are separating the service and sales parts of the dealership. That gives more weight to the notion that they will have service centers and rangers in Texas, but not dealerships.

What is not clear to me is the sales tax situation. If you pick up your car at the factory, for example, are you going to have to pay both California sales tax and Texas sales tax?

EdG | 10 June 2011

I'm not from California or Texas, but in my experience you pay the sales tax in the original state, in this case California, and then file a piece of paper in your destination state, Texas, to get credit for the sales tax already paid. I guess it's up to Texas to go get the money owed them from California. If the Texas rate is lower, they (presumably) recover the amount owed them and California keeps the rest. Otherwise you have to pay Texas the missing amount. Either way, you pay the higher of the two. Big surprise, there, huh?

David70 | 10 June 2011

EdG,

Washington state doesn't currently charge sales tax on EVs and I'm pretty sure California doesn't either. As for Texas???

txjak | 10 June 2011

I haven't found anything that exempts EVs from Texas sales tax, but this site indicates that it is being considered. If it hasn't already been approved and it takes the state legislature to do it, I doubt we'll see anything before their next session in 2013.

gotwins | 24 July 2011

I'm in the DFW area as well and plan on purchasing a Model S so how will this work? Will I have to place an order online and have it delivered to me here or am I going to have to have the car shipped to the closest state line?

Vawlkus | 25 July 2011

You get to choose. If it's easier to have it delievered to your doorstep, that's where Tesla will ship it to. If you'd rather pick it up in the state next door, then Tesla will accomodate you.

santana338 | 25 July 2011

I talked to Jing at the Colorado store. She told me Tesla legal is working on getting stores in Texas as part of their Model S rollout. As others have said, they will deliver to your door. The Models S will also have a wireless connection to allow problems to be diagnosed remotely. And of course the Rangers will make housecalls for service and bring any parts needed with them.

Nantang | 4 May 2013

For the time being, there are workarounds. They're cumbersome in some ways, but even with them, dealing with Tesla looks like it'll still be better than dealing with your average auto dealership. The one catch is, they're not competing with average auto dealerships. In the $80-100,000 range, they're competing with places like Park Place and Sewell, who are top notch luxury car dealerships. They don't have purple inflatable gorillas, shouting TV ads, or high pressure salespersons.

That said, Tesla appears to have to-your-door delivery and service arrangements that just about match the convenience of the competition, even if you have to pass the phone back and forth between you and the service center and have someone in California relay the messages. When it comes time for my next car, Tesla is still my first choice.