Elan Ooops “He can build Tesla’s in Texas-cant sell Tesla’s in Texas’

Tesla picks Austin is among biggest stories of 2020
Tesla’s Gigafactory Under Construction outside Austin Texas

Texas is oil country, OIL! All over the state there are OIL refinerys. However for the worlds largest economies,OIL is so 2001. OIL is bad, the new world is electric. Texas and a few oil producing states didnt get the memo.

One of the biggest news stories of 2020 was Tesla’s plans to build a gigafactory in Texas. The CEO Elan Musk, frustrated with Cailfornia Covid regulations threatened to leave the state for Texas. The Austin factory will produce the Cybertruck, Tesla’s Semi and the popular model Y.

Most Tesla’s are purchased online. Many states have franchise laws that require vehicles to be sold in brick and morter show rooms. Texas is one of them. A Texan cant purchase a Tesla in Texas.

As the Texas polictians were clinking their champagne glasses, they forgot about this requirment AND the Texas legislature reportedly ran out of time to make any changes to its dealership franchise laws last year.

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So Texas ran out of time last year, what about changing or amdending the law this year?

Texas, state legislature meets only every other year for a maximum of 140 days, starting from “noon on the second Tuesday in January.” This year, the Legislature convened Jan. 12 and will wrap up its work on May 31 before breaking until 2023.

This means when the first Tesla rolls off the assembly line in Austin sometime next year. Tesla will have to to ship its Texas-built vehicles out of the state before it can sell (and ship) them back to Texas buyers and there wont be an official remedy until 2023.   Elan’s not happy!

Whoopsies Indeed!



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