Tesla Motors has suffered from a setback as its selling method is rejected by the legislative body of an American state.
The legislative body of an American state rejects Tesla’s selling method. Tesla news reported that the state legislature of Texas has been unable to vote for two pro Tesla bills. Both the pieces of legislation were drafted to reject a previous dealer-supported law that disallows the use of a direct sales model.
Tesla news today reported that the authorities of a number of other states, including Arizona, Connecticut, Michigan, and West Virginia, have also patronized the automobile dealer-friendly law. Media sources have reported that Mr. Elon has tried his best to get the bills ratified, as he had hired the services of 20 lobbyists and disbursed over $150,000. Experts stated that the political and economic significance of the direct selling method has shaped the decision of the state authorities.
Tesla Motors news affirmed that the bill would now be reviewed again in 24 months when the legal body holds its next session. The founder of vehicle dealership namesake, Red McCombs, has welcomed the rejection of bills in support of Mr. Musk, as he has stated that all manufacturers must abide by laws and this is how competitive market operates.
Company sources have informed that Texas has been highly valued by the automaker, as its senior official, Diarmuid O’Connell, has stated that the company would develop an electric pick-up in the said country. As per statistics of an automobile dealership association, the Texas-based auto dealers are able to sell vehicles worth $81,400,000,000. Industry experts believe that if laws would have been passed in favor of the company, then it could have accessed one of the most lucrative markets of the United States of America.
The conditions of Texas have previously helped the cause of the organization, as it has been permitted to arrange test drivers for its customers in the state. Government sources have highlighted that the negotiation with the state officials helped it acquire the drive-launching permit.
Experts presented their views that the legal body’s decision would adversely affect the Tesla’s prospects to grow in one of the largest economies in the world. The technologically advanced vehicle manufacturer has taken a number of steps to expand in the US. Some of those include the Introduction of self-driving updates in Model S and the construction of a battery-producing facility in Nevada.
Tesla has faced many challenges in the past, which compelled it to struggle and strive for excellence in the competitive markets. It is probable that if the company immediately takes steps to build its lobby and increase its investment in the American state, it would soon be allowed to sell directly to its users. The legislature’s decision in 2017 would help determine its prospects in the territory of the American state.