Everything is bigger in Texas. This includes the state’s massive auto market.
The National Automobile Dealers Association told Bloomberg’s Lauren Etter that the Lone Star State accounts for more than $US81 billion in auto sales every year.
Unfortunately for Tesla, the company won’t be able to sell its cars directly to consumers in the state any time soon, according to Bloomberg.
Texas Governor Greg Abbott told Bloomberg Radio this week that he is content with the state’s current dealership-based sales setup and the service they provide to drivers.
However, this doesn’t mean Texans can’t get their hands on a new Tesla.
Instead of showrooms, people who live in many states where direct sales are banned can visit a Tesla “Gallery” to check out the only car the company is selling, the Model S. But any discussion of price and test drives are prohibited.
Tesla has several such Galleries in Texas, and customers can also place orders online.
Earlier this year, Tesla and its direct sales model scored major victories in Georgia, New Jersey, and Maryland. However, Michigan — like Texas — has taken a hard stance in favour of the traditional dealership-based sales model.
This year, Tesla expects to sell roughly 55,000 cars worldwide but would like to expand that total to 500,000 by 2020.
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