Tesla Motors Threatens Texas Authorities

04 Jun

Tesla Motors Threatens Texas Authorities


Tesla Motors might take a step against the policies of Texas authorities.

Tesla Motors might take a step against the policies of Texas authorities. Tesla news reported that the company has threatened to withdraw the launch of its electric pickups in the American state. The automaker’s vice president of business development, Diarmuid O’Connell, has stated that the product’s release in the state’s territory was quite logical.

He added that the decision of the Texas authorities to disallow the company’s sales in the region has forced it to review its commitment. Tesla news today informed that the legislators of the state have recently refused to permit the launch of the organization’s sales strategy in the territory. The company is known for directly supplying its automobiles to its customers.

Industry sources have highlighted that the Tesla does not sell its products through dealers. Market sources have responded that Texas-based dealership lobby has opposed the company’s selling model. Tesla’s chief executive officer, Elon Musk, has been working hard to battle against the state-backed franchised dealers.

The organization had not only hired 20 lobbyists but also contributed $150,000 to achieve its objective but it failed, as the state’s law still does not permit the direct sale of vehicles. Tesla Motors news affirmed that the authorities of other states have not acted in such a hostile manner, as the lawmakers of Maryland and New Jersey have finally given their approval for its selling model.

Mr. Musk has stated that he has been working hard to penetrate the market of the Texas. He added that the efforts of the powerful dealerships have strongly affected the automaker’s prospects in the region. Experts presented their view that the electric vehicle maker would finally surpass its selling rivals.

Company sources have informed that Mr. Musk was also interested in launching his pilot project of Hyperloop rapid transit system in the territory of the American state. The region’s vehicle market is quite huge and important, as its yearly sales exceed $80,000,000,000.

Industry experts believe that the huge potential of the automobile market has played a significant role in compelling the CEO to allocate resources to achieve his objective. It is probable that the company’s threat to change its decision might force the state’s lawmaking body to finally approve its direct selling operations.

Company officials accepted that the market penetration in Texas is not easy. Tesla should not only warn to change its launching decision but should also sponsor its lobbying methods in a very efficient manner; otherwise, it might continue to suffer from this ‘selling’ law. Mr. Musk now needs to wait for two years because the next session of the legislature would take place in 2017. The authority’s decision in the future would finally assess the effects of Tesla’s threat.


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Posted by on June 4, 2015 in Technology, Tesla Motors


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