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Bill to allow Tesla to sell cars in Texas dies in committee

May 21st, 2015

In a turn of events that isn’t terribly surprising, a bill to allow Tesla Motors to sell cars directly to consumers in Texas has failed to make it to the floor, with various state representatives offering excuses about not wanting to “piss off all the auto dealers.”

The Lone Star State’s notoriously anti-Tesla stance—one of the strongest in the nation—is in many ways the direct legacy of powerful lawmaker-turned-lobbyist Gene Fondren, who spent much of his life ensuring that the Texas Automobile Dealers Association’s wishes were railroaded through the Texas legislature.

That legacy is alive and well, with Texas lawmakers refusing to pass bills in 2013 and again in 2015 to allow Tesla to sell to consumers. Per the state’s franchise laws, auto manufacturers like Tesla are only allowed to sell cars to independent third-party dealers. These laws were originally intended to protect consumers against the possibility of automakers colluding on pricing; today, though, they function as protectionist shields for the entrenched political interests of car dealers and their powerful state- and nationwide lobbyist organizations.

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