
Rick Perry: The Pros Of Tesla Selling Direct To Customers Outweigh The Cons - bane
http://www.siliconbeat.com/2014/03/24/texas-gov-rick-perry-the-pros-of-allowing-tesla-to-sell-direct-to-customers-outweigh-the-cons/
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programminggeek
I personally find it absurd that there are such laws protecting car
dealerships, but then again given the history of the industry, there does need
to be some regulation. Where it seems to go wrong is the idea that a company
couldn't sell their product direct to consumer. It's sort of like saying that
Apple stores can't exist and Apple has to sell everything via Best Buy,
Target, and Wal-Mart. Somehow, it seems that is how the car dealership racket
has been legislated.

There is probably some kind of middle ground where Tesla should be able to
sell direct, while there should probably be a possibility of dealerships
trying to cut a deal with Tesla.

The real quagmire of unintended consequences here seems to be in how trading
6500 factory jobs for however many thousand dealership jobs. I don't know how
it shakes out on either the jobs or tax income end for Texas, but whenever you
are talking large change like this, the unintended consequences are usually
worse than predicted in one direction or another.

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Steko
Is it not possible for Tesla to somehow create a non-profit(?) they have no
stake in that just goes around these states setting up Tesla friendly
dealerships that basically mimic Tesla's own showrooms?

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joelrunyon
I'm sure 6-12 months down the road - there'd be a scathing expose about how
Tesla is abusing a non-profit status to steal business from legitimate
neighborhood dealerships.

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omarforgotpwd
Texas makes tesla direct sales illegal. Tesla bribes Texas governor with
factory in Texas. Texas governor decides to change law. Perry runs for
president in 2016 as a "job creator".

Good old American corruption

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baddox
I'll take the "corruption" that leads to economic efficiency any day.

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omarforgotpwd
If a small company trying something disruptive needs to do favors to the
government or face restrictions, that's a large barrier to entry and less
economic efficiency.

Opening a car factory is not cheap. For an auto startup one mistake like this
can destroy the company. Texas of course stands to gain millions in tax
revenue + good press.

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Steko
_Asked to detail the pros of Tesla selling direct to consumers, Governor Perry
answered without hesitation, "Commerce, Education and Energy."_

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bluthru
Brave thing to say when the Texas state legislature isn't in session to
actually do something about this...

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fembot__
Rick Perry always has a lot of brave things to say when the legislature isn't
in session. Funny that the only time he has come out in support of an
environmentally friendly industry is when he stands to gain a 6500 job
windfall at the end of his term...

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techsupporter
Theoretically he could still sign a bill relating to Tesla, even in regular
session. The next meeting of the Legislature starts on 13 Jan 2015 and his
term ends on 20 Jan 2015. Though expecting anything to get past 1st, 2nd, and
3rd reading in both the House and Senate in under 6 days is almost certainly a
doomed expectation.

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outside1234
the headline should really be: "politicians willing to do or say anything to
get a few middle class jobs"

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clarkm
What's wrong with that? Would you rather Texas leave the ban in place and not
employ anyone at all?

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venomsnake
Nothing wrong ... in the short term. Will perform indecent act for every
potential employer while bending over backwards - that mentality does not
create a stable foundation for future growth and prosperity.

You should have policies first, deals second and not change the policy to get
the deal.

