Tesla Motors Dealers: Have you been keeping up with Tesla Motors Inc (NASDAQ:TSLA)’s fight in Texas? If not, you can learn more about the obstacles it is facing here.
Here is a short piece from our previous article, giving an overview of what Tesla CEO Elon Musk is dealing with in this state:
“California billionaire and Tesla CEO Elon Musk hit the Capitol on Wednesday to push for a bill that would allow the electric-vehicle maker to sell cars in the Lone Star State through its retail stores.”
Sounds easy enough, right? Well, things are not moving forward quite as smoothly as Tesla Motors Inc (NASDAQ:TSLA) and its CEO would like. Instead, the company is facing quite a bit of resistance from dealers in the state.
However, Tesla does have some people in its corner. Automotive News recently posted a story about retired Texas auto dealer Sterling McCall and his backing of the electric vehicle manufacturer.
Unlike many dealers, McCall feels that the current state franchise law is unfair to Tesla Motors Inc (NASDAQ:TSLA) and the way the company does business.
Is this going to be enough to swing things in Tesla’s favor in the near future? Maybe, maybe not. That being said, it cannot hurt for the company to have a dealer on its side.
When McCall testified in favor of Tesla, hoping to help the company receive an exemption to the current state law, it is safe to say that it did not go over well with some other dealers.
Here is what McCall had to say about the troubles facing Tesla Motors Inc (NASDAQ:TSLA):
“When you have a case like Tesla, which doesn’t have dealers, it just isn’t right to tell them they can’t sell their cars to a willing buyer in Texas without having to go through a local owner of a dealership. I just think it’s wrong.”
McCall knows a thing or two about the automotive industry in Texas, being that he co-founded Group 1 Automotive Inc., a Toyota and Lexus dealer.
Tesla is doing its best to receive an exemption for the current law in Texas that prohibits manufacturer-owned dealerships. On the other side of the battle you have the Texas Automobile Dealers Association, fighting the company every step of the way.
This is a problem that Tesla Motors Inc (NASDAQ:TSLA) is going to face time and time again as it attempts to break into new markets. This time around the company has a dealers on its side. This has to count for something.
Check back here for more updates on Tesla Motors Dealers.
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