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Texas is one of Tesla’s biggest markets, but the automaker is not allowed to sell in the state because of their direct-sale law and car dealer lobbying efforts. Now, it appears that Tesla’s situation is about to get even worse in the state because of a new bill being introduced. The new bill could block Tesla from even servicing their cars altogether in the state (via Electrek).
State law doesn’t allow Tesla to directly sell to consumers in Texas, even though Tesla has never had any franchise dealers. Many see this as a free market issue because car dealers appear to be using the law to protect themselves from competition and creating a monopoly.
Over the years, Tesla has tried several lobbying efforts to get the law changed, but have failed to convince legislature to overturn current laws and regulations. The legislature is being influenced by the car dealer lobby, thus nullifying Tesla’s efforts so far.
According to a new bill (SB 1415) introduced by Republican Senator Kelly Hancock, it would ban Tesla from servicing its cars through its own service centers if this bill goes through legislature successfully. So far, Tesla has been able to service its vehicles through its own service centers because they are not subject to the same direct-sale rules, but now dealers are going after Tesla’s right to service its own cars. Per the bill’s draft, it would be effective as soon as September 1, 2019.
