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How Dealerships Forced Tesla Motors' Business Model Out Of Texas


Tesla Motors is the car company behind the electric Model S, of which we are fans. But along with cars, the company is also trying to innovative on the business-side, skirting the traditional third-party dealerships that act as middlemen between car companies and consumers. Instead of buying a Model S from a dealership, you can get it directly from Tesla. Unless you're in Texas, that is. If you're in Texas, you're hosed.

Texas residents can still get a car from Tesla--they'll just have to order it from out of state, and in the meantime deal with hog-tied Tesla showrooms that will show cars but can't even give potential owners a test drive. Why's that? In short, because dealerships have a lot of cash and a vested interest in the status quo, according to a new report from non-profit group Texans For Public Justice.

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