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Why You Might See A Lot More Teslas In Texas After This Legislative Session

Tesla Car

Bills in the Texas House of Representatives and the Texas Senate could have Texans seeing a lot more Teslas on the road. The bills would allow car manufacturers to establish vehicle dealerships, weakening the state’s strong franchise dealership laws that prevent Tesla from selling its luxury electric cars in the Lone Star State. 

Rep. Jason Isaac (R-Dripping Springs) filed HB 4236 so Texans can buy cars however they choose, Crain’s Dallas reports. HB 4236 and the identical SB 2093 would allow an automaker to sell directly to the public. This is the third legislative session Tesla has fought to change dealer franchise laws. 

Isaac said this is a free-market bill with heavy support from Republicans. 

The Texas Automobile Dealers Association is the largest opponent to the proposed bills, arguing they create a monopoly for manufacturers to control retail. By allowing dealerships to compete with manufacturers, manufacturers could put dealerships that also service cars out of business, TADA president Bill Wolters said.

Isaac is concerned that if Tesla cannot sell cars in Texas, it will choose not to build factories here. 

Tesla said that if the bills pass, it would get licenses to sell vehicles at its Texas galleries.