Texas Dealer Association Interfering with Free Capitalism?

They aren't the only state dealer associations fighting Tesla, but this is about the dumbest thing I've heard.

Tesla takes on Texas in latest franchise law battle
Amy Wilson
Automotive News
March 29, 2013

The company has two so-called gallery locations, in Houston and Austin, but staffers are prohibited from engaging in selling activity. They can't give pricing information or take orders. A potential buyer in Texas must contact out-of-state Tesla representatives to complete a sale, O'Connell said. The buyer must also make his or her own shipping arrangements.

Tesla also has service centers in Austin and Houston, but they aren’t allowed to evaluate vehicles for warranty repairs, he said. Tesla customers must call a dealership location in Fremont, Calif., which determines remotely whether warranty work is needed. The California dealership then subcontracts out the repair fix to Tesla’s Texas service centers.

A representative of the Texas dealers association will also testify at next week's hearing. The association says Tesla's proposed changes aren't good for dealers or consumers in the state. "The best way for any manufacturer to retail their vehicles is through great dealers," said Karen Phillips, the association's general counsel. "They're the ones who know how to retail, who know how to satisfy the customers, and they're the ones who should be selling the product."

Like a factory-owned dealership isn't going to hire great salespeople who don't know how to satisfy the customer so they can increase their total sales? Sorry, that's a transparently lame excuse that they're using just trying to protect their own market share and not allow a different business model to operate.

Read more: http://www.autonews.com/apps/pbcs.dll/a ... z2PKg0ZNyi
Follow us: @Automotive_News on Twitter | AutoNews on Facebook

Why? They are doing fine on car sales - they're going to move toward pre-production of an SUV-like vehicle now that the Roadster is done, and the plan after that is a pickup truck; it's a good thing that a company is growing, isn't it, not to mention it being an American-owned company with an American-built product?

So isn't this law that they are fighting against a form of government regulation that is hurting commerce? Should it not be challenged because they are an unorthodox company who are just trying to bend the rules to suit their needs, or is this law restrictive and damaging to seller and buyer alike, fought against by special interests only?

Hah! So there! Green jobs, check. Improving the environment, check. Providing Americans jobs and stimulating our economy, check. Best car company ever! :woo hoo:

Tesla Repays Department of Energy Loan Nine Years Early
Only American Car Company to Have Paid Back Government
Wednesday, May 22, 2013

PALO ALTO, Calif.-- Tesla Motors announced that it has paid off the entire loan awarded to the company by the Department of Energy in 2010. In addition to payments made in 2012 and Q1 2013, today’s wire of almost half a billion dollars ($451.8M) repays the full loan facility with interest. Following this payment, Tesla will be the only American car company to have fully repaid the government.

I think the others are just scared of the competition
Tesla Rides High, But Faces Formidable Foe: Car Dealers
by Liz Halloran
May 19, 2013

One, not including the one I test drove!

They've delivered about 4,500 to date and expect to sell 20-25,000 more this year. They're building about 500/week if I remember the sales guy right (it's been a while and there's lots going on in my head).