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Old 02-27-2014, 11:16 PM   #1
Lajntx
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Default Tesla to Texas: How Do You Like Us Now?

I would love to get my hands on one of these, but thanks to our so called limited government business friendly republicans controlling Austin with an iron fist.... Tesla cannot conduct business in this state because the state wishes to interject itself into private transactions between a business and consumers.

http://www.dailyfinance.com/2014/02/...u-like-us-now/

Tesla to Texas: How Do You Like Us Now?

by CNBC Feb 27th 2014 6:19AM
By Philip LeBeau

How's this for a trade: 6,500 manufacturing jobs and an investment of more than $4 Billion in exchange for the right to sell cars in a particular state.

That's one of the intriguing story lines surrounding the decision of where Tesla (TSLA) will locate a massive Gigafactory for producing lithium-ion batteries and electric storage applications.

Texas is one of four states named as a finalist for the massive plant, along with Arizona, Nevada and New Mexico.

So why is Texas such an intriguing candidate?

It all stems from the contentious relationship Texas lawmakers have had with Tesla in keeping the electric carmaker from selling cars in that state.

Until now, there has been little reason to believe Texas' ban on direct auto sales would be lifted, but the Gigafactory could change that assumption.

6,500 Jobs, $5 Billion Investment

The Tesla Gigafactory, wherever it's located, will provide a huge boost to the local and state economies.

There are few major manufacturing plants that bring in two or three thousand jobs, let alone one that would create 6,500 jobs.

All together the new battery facility will cost between $4 and $5 Billion, with Tesla investing $2 billion of its own money into the project.

Those are the kind of economic figures that are likely to make political and business leaders in Texas work hard to convince Tesla to build the Gigafactory in their state.

And what could they offer Tesla as an incentive to pick Texas?

Tax breaks? Sure

Infrastructure investments? Good idea.

The right to sell Tesla vehicles in Texas? Now you're talking.

And there's the rub. Texas lawmakers will be hesitant to reverse the state's ban on vehicle sales that don't go through auto dealer

Texas Auto Dealers Won't Give In

The Texas Auto Dealers Association is a very well-funded and politically powerful group. Over the last couple of years, it has spent millions of dollars and lobbied aggressively to make sure Texas auto sales go through Texas dealers.

in 2012 the Texas Auto Dealers spent more than $2.5 million on legislative elections in Texas and donated to 60 percent of the state lawmakers, according to an article in Green Car Reports.

Add to that the fact auto dealerships are often the biggest generator of sales tax in many counties in the lone star state and you see why Texas lawmakers passed a law banning direct sales from automakers.

Still, it would be considered political suicide to turn down the chance to land a major manufacturing plant that could have a huge impact on the state economy.

Tesla CEO Elon Musk has a very strong hand in a high stakes game of Texas hold 'em where the auto dealers have, until now, been throwing down a full house.

Does Musk have the cards to win?

If he does, Tesla could finally get access sell cars directly in country's second largest auto market.

Second Largest Auto Market in the U.S.

For the last few years Texans who wanted a Tesla had to buy it directly from Tesla's headquarters and then have the car delivered by a third party vendor.

While the setup is far from convenient, it hasn't stopped Texas from becoming one of the top markets for Tesla sales.

If Texas were to drop the ban on direct auto sales, Tesla sales in the state would likely increase substantially.

It would also give Tesla a huge win in its on-going battles with state legislatures that have either banned or are considering bans on direct auto sales.

Not a bad pay off for investing a couple billion dollars and adding 6,500 jobs to the Texas economy.
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Old 02-27-2014, 11:29 PM   #2
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Not really that big of an incentive, because what will stop the other automotive manufacturers from doing direct sales and completely eliminating the new car dealerships? You gain 6500 jobs, but how many will you lose when the major dealers are shutting their doors?

God knows what will happen to the auctions too, no dealers = no trade in's = no auctions. Auctions go bye bye and the used dealerships will follow. I know that's a worst case scenario, but allowing direct sales could have massive side effects.
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Old 02-27-2014, 11:33 PM   #3
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Keep in mind, car dealers are some of the largest donors to politicians.
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Old 02-27-2014, 11:36 PM   #4
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You seem to have no idea why Tesla doesn't do business here. But I think that's because you're a dumbass.
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Old 02-28-2014, 12:13 AM   #5
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Been doing some research on the whole buying direct and from what I can see, it's pure downside and the only winners would be the manufacturers themselves.

The biggest upside that people are talking about is the savings. 8.6% can be saved by eliminating the dealership. What they aren't grasping is that the end customer will never see a dime of that savings, it will go directly into the manufacturers pocket.

There will be no more driving up and buying your car today, you will have to custom order it and then wait on it to be made. This is an instant gratification world that we live in, I don't see customers being too happy about having to wait.

Next they're assuming that dealers will still be open for test drives, delivery, and service. If there is no money to be made, this will never happen. Even if they are open, dealer service fees are going to go through the fucking roof in response to losing the sales. Also if dealer service fees go higher, the independent mechanic shops will raise their rates.

Trade in's will become a thing of the past, the manufacturers aren't going to store and sell them, so you had better be happy with your car, cause you're likely going to have it for a while.

Local communities are going to lose jobs. Even if it's not the entire dealership, the salesmen for sure will be out of work.

The used market will either go sky high, or crazy low. I'm not exactly sure what would happen to the used market, I could see it going either way.

Lastly, the support businesses could go under/lose a lot of sales. Dealer supply stores, auctions, junkyards, auto trader, etc.


Bottom line, that's potentially devastating to the economy, all because Tesla want's a "Quality customer experience" and because people don't like to haggle over the price of a car.
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Old 02-28-2014, 12:13 AM   #6
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Texas to Tesla:AMD, Intel, Samsung, Dell, Apple, Toyota, Lockheed Martin, National Instruments....oh yeah and Space X.

God knows how many I'm forgetting.

Maybe when Tesla designs cars that don't explode when rear-ended, Texas will welcome them with open arms.
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Old 02-28-2014, 12:23 AM   #7
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Maybe when Tesla designs cars that don't explode when rear-ended, Texas will welcome them with open arms.
Orly?




-crown Vic, pinto
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Old 02-28-2014, 12:36 AM   #8
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Exactly. If I had the coin, I'd buy a tesla right now.
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Old 02-28-2014, 02:24 AM   #9
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Orly?




-crown Vic, pinto
Ohsweetwelcometotenyearsago.
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Old 02-28-2014, 02:28 AM   #10
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...and by the way, it was the modifications that made the CV's(one of the best cars ever designed) dangerous. It was specifically the Police cruisers...not the production vehicle. Unlike the Tesla.

...as far as the Pinto goes. 70's? Yep...Ford now, is the same it was in the 70's when it had the Pinto. Good job, fatty!
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Old 02-28-2014, 04:53 AM   #11
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Quote:
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You seem to have no idea why Tesla doesn't do business here. But I think that's because you're a dumbass.
Bingo! And he proves it with each and every post.
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Old 02-28-2014, 05:24 AM   #12
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Of course all the people involved with getting this situation resolved and getting them to come here are Republicans.

The Democrats are too busy worrying about their jobs after being part of the scheme to double everyone's insurance costs in the name of "fairness".

Can we ban this troll yet?
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Old 02-28-2014, 06:20 AM   #13
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Quote:
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Orly?

-crown Vic, pinto
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Ohsweetwelcometotenyearsago.
While you're googling, cobraboy, search on the Corvair and carbon monoxide issues in the 1960's. We need you to post us up some more ancient history in this thread.
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Old 02-28-2014, 06:54 AM   #14
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doot doot doo doo doooooooo IIIIIIIIIIIIIIIIIIIIIII know.....

god bless.
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Old 02-28-2014, 06:54 AM   #15
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So why didn't they just build a goddamn dealership?
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Old 02-28-2014, 06:55 AM   #16
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Originally Posted by ELVIS View Post
doot doot doo doo doooooooo IIIIIIIIIIIIIIIIIIIIIII know.....

god bless.
C'mon man, be serious. Is Little Suzi on the up?
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Old 02-28-2014, 07:44 AM   #17
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So why didn't they just build a goddamn dealership?
They are building them, slowly. Tesla is strongly against doing franchises and for good reason. That and they are building their own infrastructure to support the cars before they really get into distribution.
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Old 02-28-2014, 07:45 AM   #18
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They should sell their cars on Amazon.

Can someone explain why vehicle manufactures are required to sell their products through a dealership and how that benifits the consumer?
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Old 02-28-2014, 07:49 AM   #19
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They should sell their cars on Amazon.

Can someone explain why vehicle manufactures are required to sell their products through a dealership and how that benifits the consumer?
You have to sell cars through dealerships in Texas, because the dealer lobby got a law passed requiring it. As mentioned, there are significant economic benefits in the form of sales taxes, so most county governments are behind it now, too.
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Old 02-28-2014, 07:51 AM   #20
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I'm interested in what kind of propaganda the dealership lobby types are using to make their pitch to our lawmakers.
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