Thursday, May 16, 2013

IS MUSK'S TESLA CAR DEAL THE POISON PILL FOR SPACEX?

By Juan Montoya
Even as bills in the Texas Legislature are asking that beach closures be permitted at Boca Chica to attract SpaceX to build a commercial satellite launch pad, its owner billionaire Elon Musk is pushing aggressively to change state franchise laws to permit sale of his electric cars here.
And even though supporters of the beach-closure bill say that the two bills are not in any way related to each other, others see Musk's electric car franchise exemption bill as a "poison pill" that might be used as a way to leverage state and local incentives for him to bring his cars to Texas.
If things don't work out, they say that the state's legislature's refusal to change the law to suit his car business needs could be used as a justification for Musk choosing another place – Florida, Puerto Rico, or Georgia – for his commercial satellite launches.
"Musk's Tesla electric cars could be the poison pill in the whole selection process," said an Austin legislature watcher. "If he doesn't get his way with the cars, he might just pull Texas out of consideration for placing SpaceX and take the deals offered elsewhere."
Other, such as State Rep. Rene Oliveira's legislative aide Anthoby Gray, say the SapceX and the Tesla issues are separate matters and the fact that two bills allowing the sale of electric cars without going through a franchise are purely coincidental.
"They are separate issues," he responded to a request for comment.
The Texas Tribune reported that Tesla has been fighting across the country to get their boutique dealer stores into high traffic areas. And other than in Virginia, the online newspaper reports, they have had quite a bit of success battling opposing state dealership associations.
In Texas however, existing franchise laws prohibit Tesla from even getting their foot in the door; so the California EV maker is taking the fight to the Texas legislature to change those laws.
Tesla maintains they should gain a special exemption because A) they are an electric vehicle maker and B) they have had no previous dealings in the state, hence no franchisees would be affected.
But facing him across the line in the sand is the powerful Texas Automotive Dealer Association which has been working against any Tesla exemption. This lobby, like the Beer lobby, is one of the most influential ones in the state house and would seek guarantees from the car maker before it yields any of its influence in automobile sales here.
Yet, despite the dealers association's clout, the members of the House Business and Industry Committee have forwarded bill 3551 to the full House. This bill would potentially let Tesla sell and service cars directly to Texas residents.
Currently, Tesla has boutiques in both Houston and Austin. Musk told the Tribune he was not too optimistic about the bill's chances.
“The consensus among the auto industry is that we’re not going to succeed,” he said to the newspaper. “But if we don’t succeed this session, we’ll come back again.”
Earlier the CEO noted, “…for us, this is life or death, if we can’t go direct, we will not be able to sell cars.”
In Brownsville, we've been told that Musk has the Big Picture in mind, that he became a millionaire because he understood finance. Will he link both his business ventures and insist on success in both? Or will he take his rockets and go away if his cars aren't let in?

9 comments:

Anonymous said...

GO AWAY Elon Musk! He's got the Texas legislature playing The Price is Right. He wins, we lose. The dirty politicians are to blame, as always.

Anonymous said...

If other electric cars are sold here, why the opposition to one more model?

Anonymous said...

He can take his rockets and high end golf carts and head out of Texas. Pinche Space-X go home!

Anonymous said...

May 16, 2013 at 1:13...The issue is not the sale of electric cars. He wants to be able to sell them direct from the factory and not through franchised dealers. If he was allowed to do that every franchised automobile dealer in Texas would do out of business, because the factory would be underselling them.

Anonymous said...

Pinche Oliveira no vale verga! His idiot aide said the same thing about beach closures not having anything to do with the rocket launches...then I asked why they wanted beach closures if not for spacex? Response: Sir, how can I help you? Fucking rats!

Anonymous said...

So, like how much lower?

Anonymous said...

I WAS KICKED OUT OF ARMANDO VILLALOBOS JURY BECAUSE I SAID I WAS GOING TO BASE MY JUDGEMENT ON WHAT WAS PRESENTED. WTF MR. ANDROPHY NO WONDER YOU GET AWAY WITH MURDER.

Anonymous said...

The direct sale of the Tesla isn't going to force other dealers out of business....unless you expect everyone to buy electric cars. In the state of North Carolina...Tesla has only sold 80 vehicles. In Texas, the market for Tesla's may only be in Austin..(Keep it Weird). Down here we need hard working vehicles...and Tesla makes powder-puff cars and not trucks. So, if you agree with limiting the direct sale of Tesla vehicles, then you must also support a sales tax for internet purchases.

Anonymous said...

sii guey! stfu this about space x and your dumbass is talking about something else

rita