After bills die, electric vehicle makers still can't sell directly to Texans

May 29 - McClatchy-Tribune Regional News - Brian Gaar Austin American-Statesman

 

Manufacturers of electric vehicle still won't be able to sell directly to Texas consumers after legislation that would have allowed them to do so died during the just-ended session.

Bills that would have created an exception for American-owned manufacturers who exclusively make electric vehicles were filed in the Texas House by state Rep. Eddie Rodriguez, D-Austin, and in the Senate by state Sen. Craig Estes, R-Wichita Falls.

Despite receiving a favorable recommendation by the House Committee on Business and Industry, House BIll 3351 never made it onto a House calendar. Senate Bill 1659, the Senate's version of the bill, was left pending in committee, leaving the measure without a vote by either chamber.

Current state law requires manufacturers to sell only through franchised dealers.

But Elon Musk, CEO of Tesla Motors -- which makes electric vehicles -- argued that going through dealerships would mean his product would get lost in the shuffle. Musk also said that franchise dealers have a conflict of interest between selling gasoline-powered cars, which are the majority of their business, and selling the new technology of electric cars.

Tesla has sold vehicles to Texans but it's an arduous process and company officials are limited as to how much they can market their vehicles here.

Representatives for Musk, who is best known for co-founding the online payment processor PayPal, didn't respond to requests for comment Tuesday.

The House and Senate bills were opposed by the Texas Automobile Dealers Association, the state trade association for franchised new car and truck dealers. Officials said they could open the door to larger manufacturers coming into Texas and attempting to sell directly to customers.

In a statement, Rodriguez vowed to try again in the next legislative session.

"This was a new concept to the legislature but we were able to build a coalition of support and look forward to trying again in 2015," he said by email.

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