In many states, Tesla’s direct sales model has brought on legal challenges. Most recently, the electric car company has been doing battle in Texas, where existing laws prohibit direct sales. The Texas State Legislature failed to vote on two separate bills that would have allowed Tesla to move forward with their plans to do business in the Lone Star State so it seems that, for now, the fight is over and Tesla has lost.
CEO Elon Musk lobbied successfully against similar laws in New Jersey earlier this year, winning the right to open several direct sales showrooms. In Maryland last month, Tesla got the go-ahead from the governor when he approved a bill that was ironically backed by car dealerships in that state. Bloomberg reports that, in Texas, Musk hired up to 20 lobbyists and invested as much as $150,000 in campaign contributions in an effort to convince lawmakers to create a similar exemption.
The legislature instead opted to forego a vote on the issues entirely, sending a strong message that the Lone Star State is loyal to auto dealers, which have a great deal of political power there. Musk won’t have another chance to change their minds until the legislature is in session again in two years.
Via The Verge
Images via Tesla Motors