[HN Gopher] Tesla Will Have to Ship Its Texas-Built Cars Out of ...
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Tesla Will Have to Ship Its Texas-Built Cars Out of State to Sell
Back to Texans
Author : belltaco
Score : 18 points
Date : 2021-05-29 19:38 UTC (3 hours ago)
(HTM) web link (www.thedrive.com)
(TXT) w3m dump (www.thedrive.com)
| sschueller wrote:
| Earlier discussion https://news.ycombinator.com/item?id=27322568
| Finnucane wrote:
| I guess it's a matter of priorities. The TX legislature seems to
| be moving with a quickness to get voter suppression bills passed.
| Jiocus wrote:
| Can somebody shed some details on why manufacturers are
| prohibited from selling their vehicles directly to Texan
| consumers?
| Finnucane wrote:
| It's not just Texas. Most states have similar laws. In the
| past, most dealers were local, so it was easy for state
| politicians to put their interests over Detroit's.
| MandieD wrote:
| The Texas Auto Dealers Association has a remarkably strong grip
| on the Texas legislature.
| thrill wrote:
| The idea of non-OEM dealerships supposedly was originally to
| increase competition by preventing OEMs from competing with
| dealers to run them out of business, though it was likely way
| oversold since 100 years ago there were far more OEMs than
| there are now.
|
| Today, when it's trivial to price compare online between
| different offerings from different OEMs, the entire structure
| of dealership laws exists to keep the large donations from
| those businesses flowing to politicians. I watched an online
| video of a Texas committee meeting with the public, and
| lobbyists, considering allowing such direct sales. The thing
| that jumped out to me was the political grandstanding about how
| dealerships donate "so much money to little league baseball
| teams, etc.", with no mention of their own significant
| reception of such monies, and with no discussion that removing
| the middleman of dealerships would mean less money extracted
| from the buyer to pay for all those shiny showrooms, meaning
| such money could be donated directly by consumers to _their_
| favorite organizations. But the most remarkable thing to me was
| watching the politicians greet the automobile dealers lobbyist
| with some pleasure by name when she got up to talk and
| mentioning how often they saw her.
| gutino wrote:
| There was a time when a dealer would invest in a building, a
| deal with car companies and then, car companies would look at
| what dealers sell more cars, and establish in front of them a
| competing dealership run by the company itself, which resulted
| in a better price, bankrupting the independent dealer.
|
| But Tesla always sold their cars directly, there is no risk
| that they will compete with any third party dealership because
| they do not make deal with them. That is why that law does not
| make sense to be applied to Tesla. Its a shame Texas define
| themselves as one of the most free states and still have this
| law
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(page generated 2021-05-29 23:02 UTC)