Tesla Fails Again To Alter Texas Dealership Law

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Tesla Motors IncTSLA
once again
failed
to get Texas to change its laws banning direct sales of motor vehicles after a legislative committee in Austin failed to act. At least five states including Texas currently have bans on Tesla's sales approach, with West Virginia jumping on the bandwagon
last month
. Michigan's governor
signed
a similar law in October that the Federal Trade Commission staff recently called "protectionist." Tesla's latest attempt at getting new Texas legislation died in committee May 14, despite the company's phalanx of powerful lobbyists who made $150,000 in political contributions to dozens of Texas lawmakers on the company's behalf. A similar Texas effort by Tesla failed in 2013. The Tesla proposal would have enabled the company to sell directly to consumers at up to 12 Texas locations. Auto dealers and manufacturers opposed the measure. State Sen. Troy Fraser, a key committee chairman, recently told the Texas Tribune that he saw no reason to anger auto dealers on a Senate vote before the Texas House passed a version. "I'll definitely look at this issue again in the future." Rep. Eddie Rodriguez, the House author of the Tesla bill, told the
Houston Chronicle
recently.
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