Wednesday, April 15, 2015

Prospects of Tesla Motors in Texas

 Prospects of Tesla Motors in Texas


The prospects of the American based electric automobile manufacturer Tesla Motors have to be decided by the legislature of Texas. Tesla news reported that the members of the state’s legislature would finally vote to permit the vehicle manufacturer to sell its cars directly to its customers. Whereas, the media news reported that a bill has been proposed by the Democratic representative Eddie Rodriguez.
A bill was drafted to permit the vehicle manufacturer to establish up to 12 stores in the state where the manufacturer could sell cars. It was filed in the senate of the state by a Republic Senator Kelly Hancock. The pro manufacturer’s bill is being examined by the License and Administrative procedures committee of the legislature.
Tesla news today reported that the bill has not been welcomed by the committee as none of its members have favored the bill. Government sources informed that most members of the committee have stated that they believe that the implementation of the bill would establish two systems. The members also stated that the approval of the bill would harm the interests of law abiding dealers. The discussion of the senators is enough to tell us that it is most likely that the committee would reject the bill. Currently Tesla Motors is suffering from huge selling problems in Texas as the state authorities have prevented the firm’s would be purchasers from placing orders at galleries.
This action is enough to tell us that the authorities strictly oppose the selling model of the vehicle manufacturer. The dealership lobby has reacted aggressively towards the bill as it is of the view that rules should be same for everyone. Experts also believe, that the campaign contributions have played their role in influencing the views of legislative members as car dealers have contributed heavily to campaigns. Tesla motors news informed that the records of the Ethics commission of the state have revealed that the Democrat representative Roland Gutierrez has received funds from the vehicle dealers association.
The company was favored by a professor from the University of Texas who appreciated  the direct sales of the vehicle manufacturer over the ones through dealership. He has argued in front of the committee members that the electric vehicle manufacturer should be permitted to dispatch vehicles directly to customers. He has further said that the state’s opposition to direct sales model has harmed the interests of consumers and producers. The arguments of the professor are enough to tell us that the civil society tends to support the firm’s selling model. The committee has not yet voted on the bill. Now it has to be seen that to what extent the bill is able to play its role in affecting the selling operations of the automobile manufacturer.

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