EV discounts in Texas do not apply to Tesla due to its direct sales model

Tesla has refused a concession to buyers of electric cars in Texas, but the automaker has moved its headquarters to the state.

Texas recently published a list of electric and electrified vehicles that can participate in a $ 2,500 car purchase or rental program, and although there are 142 different models, none of them are Tesla.

The problem is that Tesla does not have a dealer network. Instead of the traditional sales model, the electric car brand prefers to sell its cars directly to consumers, but this has deprived it of discounts under Texas law.

The discount program is run by the Texas Environmental Quality Commission, and Laura Lope, media and public relations manager, says the state’s franchise dealership law requires cars to be purchased from a state dealer.

“The program now requires you to buy or rent a used car from a licensed new car dealer or leasing company in Texas. Under Texas law, cars purchased directly from a manufacturer or a freelance dealer who does not have a license to sell or rent new cars in Texas are not eligible for a discount, ”Lopez said. Central square.

Read more: Tesla Cyber ​​Rodeo to show promising 2023 updated Cybertruck and new robot taxi

Tesla recently opened its Giga plant in Austin, where it will produce the Cybertruck as well as the Model Y. However, the brand is not allowed to sell any of its vehicles directly to Texas; instead, they must first be sent out of the country to be returned.

The brand has tried several times to change the law, most recently with 4,379 bills in 2021, but the bill failed and lawmakers will not reconvene until 2023.

While the obstacles are certainly annoying, they don’t seem to have had much of an impact on Tesla’s sales, especially Carla Bailo, president and CEO of the Michigan Center for Automotive Research, who says many people don’t like showrooms.

“It certainly didn’t slow down Tesla’s sales – they’re still selling everywhere without dealerships – and a lot of companies have started to go that route because consumers like it,” he said. «[Dealership laws] protects anything that may happen along the way in any case. Dealers, unfortunately, are not always a good experience for many people. “

Currently, the lack of Tesla dealers can bring comfort to buyers, but almost all high-demand cars receive unreasonable prices. Instead of getting a discount from the government, Tesla buyers may be happy to get a very popular car without paying a ridiculous surcharge for benefits.

RC Verma

This is RC Verma owner and founder of tbobuzz. This site is created for your convenience. If you have any query or suggestion, you can contact us by provided methods.

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