It has been well documented over the past few months that Tesla Motors Inc (NASDAQ:TSLA) is looking for a way to expand its presence in new states, including Texas. While there doesn’t appear to be anything wrong with this, the company has run into resistance time and time again.
This is due in large part to the way that Tesla sells its vehicles directly to consumers. As you can imagine, many dealers in the state of Texas are not happy with this sales model. For this reason, they have put up a fight and for the time being it appears they have come out on top.
Of course, there is no reason to believe that Tesla Motors Inc (NASDAQ:TSLA) and its CEO, Elon Musk, are going to give up. That being said, it appears that the battle in Texas is over for the time being.
Here is a brief excerpt from an Automotive News piece published earlier today:
“Tesla-backed bills that would have created an exemption to current state law restricting factory-owned dealerships failed to make it to the floor of the Texas House or Senate for voting. The Legislature’s regular session ended Monday, May 27, and it won’t meet again in a general session until 2015.”
As you can see, this is a big disappointed for Tesla in Texas as the company is not going to have another chance to introduce its vehicles in the state for quite some time. This doesn’t mean that it will be unsuccessful in breaking into other states, but it will definitely make the task more difficult.
Here is more from the same article:
“The Legislature did the right thing,” said Karen Phillips, general counsel of the Texas Automobile Dealers Association, which opposed the legislation.”
From the very start, things did not look good for Tesla Motors Inc (NASDAQ:TSLA) in its attempt to make a bigger impact in the Lone Star state.
This is not the first setback for the company, however. In April, Tesla Motors Inc (NASDAQ:TSLA) was rejected its request for a dealership license in Virginia. And as you probably know, the company is locked up in a similar battle in North Carolina.
What is next for the company and its CEO?
“If state-level losses stack up, Musk has said he will consider seeking action on the national level, either through federal legislation in Congress or a federal lawsuit.”