Texas is trying to block Tesla from even servicing its cars in direct sale battle with car dealers

Fred Lambert
- Mar. 16th 2019 6:03 pm ET

Tesla has long been having issues selling its cars in Texas due to their direct-sale law and car dealer lobbying effort, but now the automaker’s situation is becoming even more precarious in the state as a new bill that could block them from even servicing their cars is being introduced.

Texas is one of the biggest markets in the US that still completely bans Tesla’s direct sale model.

The local car dealer lobby is using old laws meant to stop automakers to compete with their own franchise dealers to block Tesla from selling their own cars directly to consumers even though Tesla never had any franchise dealers.

Many see this as a free market issue as car dealers appear to be using the law to protect themselves from competition and create a monopoly.

Tesla has launched several lobbying efforts to change the law over the years, but they always failed to convince the legislature, which is being influenced by the car dealer lobby.

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