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Technology & Entrepreneurship

Tesla Fails In Texas Again

Joseph Thorton (Flickr user: jtjdt)

For the third consecutive session, the Texas legislature declined to pass legislation that would allow electric automaker Tesla to sell directly to consumers.

The company made a statement today saying the state is continuing to fall behind and lose out on valuable economic development opportunities as a result of the failed legislation.  Texas is one of four states that doesn't allow direct-to-consumer sales. Tesla, and watchdog organizations have pointed to Texas' Car Dealers lobby as the main opposition and reason the bill continues to fail.

Tesla's decision to build its multi-billion dollar electric battery factory known as the Gigafactory outside of Reno, Nevada instead of in San Antonio was partially influenced by Tesla's inability to sell directly in Texas. Their statement suggests large investments like that will continue to flow outside the state.

According to its website, Tesla currently has showrooms in Houston, Austin, Dallas and San Antonio. 

As a result of current laws, customers can learn about and test drive cars, but cannot purchase them.