Proposed Texas bill would allow Tesla to sell vehicles directly in the Lone Star State

Giga Texas Feb 23 2021
Image via Jeff Roberts (@peterdog15) /Twitter

Texas currently has strict regulations that require all vehicle sales in the state to go through third-party franchised dealerships. That doesn’t impact legacy automakers like Ford or General Motors which has an extensive dealership network.

That’s not the case for Tesla. Due to their unique online-only sales model, buyers in Texas can only purchase their new car online, and it must be shipped to them from out of state.

That may soon change as a proposed state law would allow makers of electric vehicles (EVs) to conduct consumer direct sales in Texas.

The proposed law, House Bill 4379, would recognize EV makers as dealers allowing them to sell cars directly to buyers. The only caveat is the cars in question must never have been sold in Texas before by third-party franchised dealers.

It won’t be an easy road ahead as the Texas Automobile Dealers Association is expected to fight any rule changes, just as they have done before.

Many expect this time to be different considering the automaker is currently spending over $1 billion to construct Giga Texas in Austin, creating over 5,000 jobs in the process.

Tesla is also expected to launch their insurance product in Texas soon based on recent filings with the Texas Department of Insurance.

Source: The Statesman

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