TSLA is being banned, indirectly, in TX along with NC, VA, and CO due to their unique sales process which cuts out the middle man (i.e car dealerships). Yea or nay WC?
http://news.yahoo.com/blogs/nightline-fix-abc-news/why-texas-bans-sale-tesla-cars-140842349.html
A process that makes everything more efficient and cheaper to the consumers!? Can’t have that.
Still a niche market. I would imagine the folks that really want one would just go to another state to buy it. But definitely nay. “… integrity of the entire franchise system is in peril.” Give me a break.
Why, Texas? Probably because there is no public transit and every single person owns a car, so the dealers’ lobby is extremely strong…same for the other states probably.
This is probably why “simplifying the tax code” won’t go through. Imagine all the accountants that would be fired if taxes were… easy and simple.
But…but…we have a light rail line that connects 3 things! and unless you live next to it, you have to take a bus to get to it!
They’re not banned… thats not a correct description. They have a showroom in the mall to look at them, but they can’t take orders. From what I understand you just order them online and they show up at your house on a flatbed tow truck.
I’ve seen a surprising number Tesla’s here in Houston, mostly in the wealthy parts of town (duh). I saw 3 of them on one Saturday last month within 3-5 miles of each other. Just a toy for people to drive around town. Texas doesn’t have the charging infrastructure on highways, so you can’t really use them out of town very easily.
I’ve read a bit about this issue (in general, not as it relates to TX) and can’t find one legit reason why anyone should be opposed to Tesla being able to sell direct. The only consideration is it’s going to squeeze the automakers. Last I heard that’s call competition. You know, the cornerstone of capitalism?
So wait a conservative state that is a big proponent of a capitalist society is interfering?
bunch of mutha fudgin RINOs
Also a bit of oil money in TX that probably doesn’t like Tesla on principle.
NY tried to do this very recently as well, but it wasn’t passed. All these efforts are funded by the dealers’ association (NADA).
This kind of thing happens everywhere. Real estate brokers in New York City take 2 months rent to set you up with an apartment; in any other state, this would sound downright criminal. Taxi operators in San Francisco lobbied to kill shared car ride programs. Plus, consider all the subsidies that go to corn and dairy farmers, steel workers, shipyard construction yards, and coal miners. This is just how the world works, unfortunately.
I would hardly consider the Tesla Model S to be a “toy”. It is very much a real, practical car. It has a 265 mile range. Most people drive between 40 and 50 miles a day.
Yay, Texas’ (Republican) small government at work!
I was just very recently made aware of this “Tesla” thing.
They’re not like the Chevy Volt, right? The Chevy Volt has a range of 20 miles (or so), but it also has a gas motor, so if you run out of juice, the gas motor kicks on. The Tesla has no such thing, so if you can’t find a Tesla charger, you’re pretty much screwed.
Is what I’ve described anywhere close to being correct?
It can go about 140 miles on a single charge and takes about 30 minutes to completely charge. Much better than anything else battery powered at the moment.
Whether they should be sold in Texas or not, I don’t know (or don’t care). But they do sound like a royal PITA.
The closest “big” city to me is Fort Worth, which is about 300 miles away. My parents live 235 miles away. I would have to rent a car just to visit them, which doesn’t make much sense. And that would be true even if I did live in a “big” city.
Not to mention–who works on these things? Where do you take your Tesla for service if it breaks down? Does it cost a jillion dollars to fix?
I can see how this would be advantageous for those who live in NYC or LA or something, and never drive more than 50 miles from their house. But until you get more charging stations on the road, and until they can charge up quickly, I think I’ll just stick with gasoline-powered vehicles. (Think–every two hours you drive, you have to spend 30 minutes charging up, if you can find a charging station. And if you can’t, you walk.)
Green, then the dealers shouldn’t be worried, right?
It’s just because of the status quo. Think about it: if Chevy or Ford wanted then they could sell direct online and deliver the car, saving tons of costs in real estate and inventory and completely cutting the dealers out, but there is just too much inertia and vested interests. So, a non-Detroit based innovative company comes along with a different sales model and everyone goes crazy. I think what the dealers are really worried about it is that opening up the idea that you don’t need dealers could cause other car makers to adopt a sales process similar to Tesla’s.
And, they are awesome if you rare drive over 200 miles (me). I just can’t justify the cost. Also, living in a city I do not know how the charging station thing would work (I don’t have a garage currently).
You’re a little too quick to bash. You should read up on their business model. If it breaks down they send a service team to your front door. Just about anything that could happen is covered under warrenty. Their cars have also received the highest safety rating ever and, by all accounts, are very well made.
Tesla is working out contracts with places like McDonalds and other similar spots to install charging stations, as well as dedicated charging stations across the US. Sure, it’s not practical, yet, for guys like you that have to drive long distances. But for many it’s a very viable option. Provided you have $90k to buy one.
I haven’t been a fan of cars like the Volt or Prius, but Telsa seems to be doing it right. If they can get the infrastructure in place, they shouldn’t have a problem being a major player in the auto industry.
I think i could be stretching it with this analogy but consider amazon vs best buy, or a brick and mortar retailer vs an online retailer. If those companies (leaving aside bby’s 1 in a million earnings call a few days ago) represent anything that correlates with the possibility of direct sales, i would be lobbying as a car dealership too.
On a different note, does Elon sleep? The guy is basically running three public companies with aspirations to developing the most complex travel system ever. Maybe the limitless pill does exist?
Tesla had their first recall recently: a weld on the rear seat was not up to spec, Ford probably wouldn’t have done a recall. It was the smoothest recall in history. Tesla drove a flatbed truck with a new Model S to your driveway, dropped it off as a loaner, picked up your Model S, brought it in for repairs and returned it to you. Seamless.
I really think Tesla could be the Apple of autos:
Inconic figure with vision at the helm.
Differentiated product focused on exceptional industrial design that people are willing to pay a premium for.
Centrally managed sales/distribution process to maintain control and cache.
First mover advantage (TSLA: electric cars, AAPL: large storage portable music, true smartphones). People can quible about this one, but let’s not split hairs and just say that they were both out with best in class products early into a new consumer trend.
You also recharge for free at Tesla dealerships/showrooms and can also do a battery swap for $60 (think Blue Rhino propane tanks). By the end of next year, they plan to have a charging network in place that will allow you to drive from NYC to LA and never pay a cent for a charge. I’m not an automotive engineer, but it’s my understanding that electric motors are far more reliable and require much less maintenance than internal combustion engines. As others have said, the Tesla is not a “practical” car right now but it’s potentially the beginning of a huge shift in the automotive industry. A lot of things weren’t practical when they first came out, but you need to go through that stage to get to the end game. How many people had an early cell phone, you know the ones that came in a bag and weighed 20 pounds? Not many, but without those phones there wouldn’t be a smartphone in your pocket right now.