Announcement

Collapse
No announcement yet.

Tesla to Texas: How Do You Like Us Now?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • 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.

    Track your personal stock portfolios and watch lists, and automatically determine your day gain and total gain at Yahoo Finance


    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.

  • #2
    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.

    Comment


    • #3
      Keep in mind, car dealers are some of the largest donors to politicians.

      Comment


      • #4
        You seem to have no idea why Tesla doesn't do business here. But I think that's because you're a dumbass.
        "When the people find that they can vote themselves money, that will herald the end of the republic." -Benjamin Franklin
        "A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury." -Alexander Fraser Tytler

        Comment


        • #5
          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.

          Comment


          • #6
            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.
            "Any dog under 50lbs is a cat and cats are pointless." - Ron Swanson

            Comment


            • #7
              Originally posted by jdgregory84 View Post
              Maybe when Tesla designs cars that don't explode when rear-ended, Texas will welcome them with open arms.
              Orly?




              -crown Vic, pinto
              2012 GT500

              Comment


              • #8
                Exactly. If I had the coin, I'd buy a tesla right now.

                Comment


                • #9
                  Originally posted by Cobraman View Post
                  Orly?




                  -crown Vic, pinto
                  Ohsweetwelcometotenyearsago.
                  "Any dog under 50lbs is a cat and cats are pointless." - Ron Swanson

                  Comment


                  • #10
                    ...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!
                    Last edited by jdgregory84; 02-28-2014, 03:35 AM.
                    "Any dog under 50lbs is a cat and cats are pointless." - Ron Swanson

                    Comment


                    • #11
                      Originally posted by CJ View Post
                      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.
                      "It is in truth not for glory, nor riches, nor honours that we are fighting, but for freedom - for that alone, which no honest man gives up but with life itself."

                      Comment


                      • #12
                        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?
                        Originally posted by racrguy
                        What's your beef with NPR, because their listeners are typically more informed than others?
                        Originally posted by racrguy
                        Voting is a constitutional right, overthrowing the government isn't.

                        Comment


                        • #13
                          Originally posted by Cobraman View Post
                          Orly?

                          -crown Vic, pinto
                          Originally posted by jdgregory84 View Post
                          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.

                          Comment


                          • #14
                            doot doot doo doo doooooooo IIIIIIIIIIIIIIIIIIIIIII know.....

                            god bless.
                            It is easier to build strong children than to repair broken men -Frederick Douglass

                            Comment


                            • #15
                              So why didn't they just build a goddamn dealership?
                              ZOMBIE REAGAN FOR PRESIDENT 2016!!! heh

                              Comment

                              Working...
                              X