Tesla will not sell cars directly in Texas
Tesla will not sell cars directly in Texas

Tesla will not be able to sell its cars directly to the consumers in Texas. The company was selling cars directly in Texas, but now it has been stopped from doing so till 2017. The Texas State Legislature received two separate bills related to car sales in Texas. But the things did not work. Now, the voting could be conducted only after two years.

According to Diarmuid O'Connell, vice president of business development for Tesla, which is based in Palo Alto, California, "They are thwarting the will of the people. It doesn't even get a fair hearing -- much less a vote -- is to me very odd and disturbing".

On May 29, Bloomberg reported that for the second time, Elon Musk, the CEO of Tesla has not got the permission regarding direct sales. The company was eagerly looking forward to sell electric cars ranging around $100,000; however, this will not be possible now.

The company hired 20 lobbyists in addition to spending $150,000 in Texas in an attempt to support the campaign but it did not get what it wanted. There is already a law in Texas that looks after interest of dealers and bans companies, when it comes to direct sales. Some other states are also there with the same kind of legislation. West Virginia, Arizona and Connecticut were among those states.

According to Engadget, the dealership is quite significant; it leads to creation of employment and sponsorship. The change in law could benefit the environment in addition to competition.