Tesla in Texas

On July 14, The Texas Tribune confirmed Governor Greg Abbott has no plans to create a policy loophole for Tesla in Texas. Currently Tesla cannot directly sell their vehicles to consumers in Texas. Texan Tesla consumers can however buy the cars online. Abbott’s does not want to give Tesla a loophole because they do not have a dealership to repair cars. Tesla’s current business model simplifies car buying by selling cars directly from the vehicle manufacture, not a third party dealership. Traditional dealerships have lobbied strongly against this because it disrupts their business model.

Because Abbott does not want to allow Tesla to sell cars in Texas, he is disrupting the free market.  This goes against core Texan values. Abbott is even quoted saying the automobile sector is “very open”. If the sector were actually “open”, Texas would allow Tesla to sell their cars. Regarding Abbott’s statement about Tesla not having a dealership to repair cars, Tesla already has three service centers in Texas to repair cars. Governor Greg Abbott’s decision is disrupting the free market and is hurting innovation, which would also help consumers, in Texas.