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Hagerty
Hagerty Employee

Texans' Tesla-buying quandary worsens, Saab's first car turns 75, $226K solar-powered car

Intake: While Tesla's direct-to-consumer sales strategy has been a bone of contention ever since the company's inception, a new wrinkle in this story has emerged: Texans looking to purchase or lease a Texas-made Tesla are ineligible for the state's $2500 rebate for EVs or plug-in hybrids.
https://www.hagerty.com/media/news/the-manifold/2022-06-10/
21 REPLIES 21
RichDG
Pit Crew

re: Tesla Surely Elon was aware of the TADA snafu before he built the Texas plant. If so, why didn't he use his power to convince the powers that be to change the rules or go elsewhere? Surely there were other states that would have been glad to have his money.
jimv
Pit Crew

Read up on the long legal process that has been going on between Tesla and Texas.  Also Tesla and MI.  The influence from Manufacturer money and Dealer association money is unacceptable and money influence in politics needs to be eliminated from this issue.  Consumer right to choose is being crushed in states that are trying to stop manufacturer direct sales of Tesla or any other new manufacturer that is choosing to sell direct instead of the sometimes less than consumer friendly Franchised dealer model that a lot of consumers are unhappy with. 

Remember that Tesla builds beautiful new dealerships that employ many in state that allow them to sell Tesla vehicles direct to consumers.  I live in MI and know that is unfair to consumers who want to purchase a Tesla.  More jobs would be nice as a result of the new dealerships that Tesla would build in the states that have been playing legal games with preventing the direct sales model in their states.

tarpatel
Pit Crew

Gulf States Toyota is nothing more than legal organized crime due to the fact that Texas politicians are easily bought and paid for. They add nothing of true value for the customer except higher vehicle prices.

Gulf States Toyota is a franchise that was purchased back in '69 to sell and distribute Toyota cars. It has made it's owners quite wealthy. Blame Toyota for doing that to try and get a foothold in the USA 43 years ago. Toyota would love to buy it back but it would not benefit Gulf States owners who don't want to sell. We don't have to like it but it exists because of Toyota.

Sajeev
Community Manager

Correct: GST's success has very little to do with politicians, perhaps even nothing to do with them. 

Yep, it has nothing to do with politicians.  What they may do with their money and politics I don't know and I don't care.  They took a chance on this company and it's tiny cars and that gamble has paid off very well for them. 

Longroofjunkie
Instructor

Yep.
PecosBill
Intermediate Driver

Legal organized crime?

Facts. How do they work?

In 1969, would you have signed a deal for lifetime distribution of, at the time, unknown sh!tbox Coronas and tin can Land Cruisers?

That's a RICO case? Now research SE Toyota.
Smileamile
Intermediate Driver

The Texas Railroad Commission imposed similar rules on UPS for over 40 years. If UPS picked up a package from Dallas for delivery to Dallas, we had to take the package out of state first (usually to Oklahoma). As a manager, I worked with the Texas legislature for one year to try to change the law. UPS refused to use campaign contributions to get the job done, using customers testimony to their elected representatives instead. While costly (time and money), the principle was correct. I guess Texas still funds it’s politicians through their laws. It’s a shame, but I guess this how the world works!
Jimboriffic
Intermediate Driver

That didn’t only happen in Texas, that “take it over the state lines and bring it back” thing happened in the Midwest too.
Snailish
Engineer

The dealership angle is tricky. Dealerships provide local jobs and a brick-and-mortar place you can deal with.

As long as your jurisdiction has "right to repair" then maybe some of the Tesla customer service model isn't a nightmare.

We've been very fast to do some odd things in the last few years:

-regulate taxi companies like crazy but not so much on the ride sharing
-regulate the hotel/motel industry like crazy but not so much the online-daily-rentals.

I'm not sure it's a better world with no taxi companies, hotels or dealerships. Remember, Uber didn't (hasn't? I'm out of date) even try to make money offering their service for the first few years. The insane stock valuation was based on growth & projections not actual profitability.

Once the regulated cab companies are gone from a market I expect the ride services prices will go up. I imagine the same will hold true for the other businesses being usurped.

No surprise that Tesla owners in Texas get no benefit of having Tesla in this state. It isn't stopping people here from buying a Tesla as they are popping up everywhere in Austin's suburbia.

Picasso? What an ugly front end.
Rick2
Instructor

The Saab is cool! Texas on the other hand does not care about their people or tourists. Just made up stuff!
Longroofjunkie
Instructor

Gotta love the folks that run Texas!

Literally killing their own citizens by having their own (wholly inadequate) power grid.

And that’s just one example.

You couldn’t pay me enough money to ever live there.

“Oh, the taxes are cheap.”

Nope. Look at the Property Taxes there. Obscene.

There’s (still) no such thing as a fee lunch. Services have to be paid for primarily through taxation.

In these days of outstanding new-car reliability and quality, dealers provide very, very little of value.

I just deal directly with the Manufacturer for any warranty issues.
Jimboriffic
Intermediate Driver

I’m sure most Texans wouldn’t want you there, either. So everybody should be happy.
As for taxes, the state income taxes aren’t just cheap, they’re nonexistent.
And do you really think property taxes would be lower in someplace like, oh, I don’t know, New York?
I don’t live in Texas and I’m not a Texan, but if you’re going to bash a state for high taxes, consider some of the other states that have high taxes on property AND they also have a state income tax.
SAG
Technician

Seem's like "Every body" is running a "GAME".
Gov; Cars; Businesses; Internet; Phones:
Aaaah !!!
SAG
Technician

Love the
"SELL MY INFO" part.
Data tracking.
Oldroad1
Gearhead

Maybe TADA are doing you Texicans a favor where Tesla sales are concerned. There is news out there that Tesla dependability is starting to go away. Reports of many break downs.
bblhed
Instructor

Wow, that is a lot of EV news!
I want to mention that I grew up in a town that had protectionist laws for the copper and brass industry. Here is how that worked out. The last place that processed copper and brass hasn't done much but receive and ship it in over 20 years and the laws to protect the industry started to disappear around the time that unemployment in the town hit 25% almost all copper and brass layoffs. Law makers will eventually turn on Auto Dealers, but by the time it happens they and the economy surrounding them will be so broken it won't really hurt them anyway.
2004JAGxj8
Intermediate Driver

Could care less. I am not going to buy a Tesla or a Toyota. The EV thing is a joke and Toyotas are just plain ugly. In fact, in general, most vehicles in their categories all look the same. What irks me is taxpayers paying $2500 to someone who buys an EV. Why the hell am I paying for someone else's car. Give me the $2500 taxpayer money on the Hellcat my son just bought. Now THERE is incentive.
jimv
Pit Crew

Texas SNAFU (MI too)
Lobbyist money locks out Tesla direct sales to Texans. Teslas are made in a new Tesla owned facility in Texas. Another state is MI that also locks out Michiganders from buying a Tesla direct from Tesla and taking delivery at Tesla owned in state showrooms. The same lobbyist money is blocking Tesla in MI ( the Texas and the MI state automobile dealers association and National franchised automobile dealers association TADA, MADA, NADA).
The dealers want to keep out the Tesla owned company sales delivery centers. The dealers want to have a franchise to sell Tesla vehicles at their own dealerships.
Tesla does not and never has used the franchised dealer sales system choosing to sell direct from Tesla owned stores.
Texas and MI do allow in their state Tesla Owned service centers, manufacturing facilities etc ; but do not allow sales to residents in state or in state delivery centers to be built in their state and owned by Tesla for delivery of the new Teslas to consumers in TX or MI.
This is influence of the respective state legislatures that is resulting in protection from competition for in state car dealers. Their dealer association funded lobbyist money influence. The old cut off your nose to spite your face.
Surly franchised dealers have implemented another negative action that when exposed to the public results in their consumer satisfaction ratings dropping even lower.
Yes, there are many good, well run independent franchised dealership operations with high consumer satisfaction that are willing to take on new competitors without this influence produced protectionism.
Tesla, the manufacturer, has the right to choose the direct sales distribution method.
Residents in Texas and MI are being denied the right to choose what products they purchase in state and the right to enjoy buying them directly from the manufacturer in their home state. Consumer rights are being blocked to protect dealerships from competition.
I have empathy for the franchised dealerships from personal experience during my 14 years as a franchise holding new car dealership owner, Pres. and general mgr.
If you can't keep up with what others are doing, it is best not to attempt it. The idiom: If you can't run with the big dogs, you'd better stay on the porch