Tesla Vs Franchised Car Dealers In Texas, Arizona: Battles ContinueTesla Vs Franchised Car Dealers In Texas, Arizona: Battles Continue

The battle between Tesla Motors and car-dealer groups has flared up again on two familiar fronts.
Both Texas and Arizona have seen skirmishes before between Tesla and groups representing franchised car dealers.
Franchised dealers, who have long enjoyed a state-mandated monopoly on retail car sales, appear to feel threatened by the automaker’s direct sales scheme for electric cars.
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Attempts by Tesla to sell cars in both states have failed so far, but that doesn’t mean the debate is over.
That’s literally the case in Texas, where a formal debate was held between representatives from the carmaker and the Texas Automobile Dealers Association.
Organized by the Texas Conservative Coalition Research Institute, the debate saw each side accuse the other of trying to create a monopoly, according to The Texas Tribune.
Tesla Store opening in Westfield Mall, London, Oct 2013
Ricardo Reyes–Tesla vice president of communications–argued that the current franchise system creates a monopoly for dealerships, and said keeping Tesla out of Texas only hurts competition.
He said it was odd that the only thing consumers can’t buy directly in the state are “booze and cars.”
But Bill Wolters–president of the dealer association–said Tesla was the one stifling competition, since only the company itself can sell the Model S.
MORE: Where Can Tesla Legally Sell Cars Directly To You? State-By-State Map
He further claimed that if company-owned dealerships ever become widespread, carmakers would only operate outlets in “the most profitable, high populated areas” of the state.
Tesla CEO Elon Musk was also in Texas earlier this month fighting to change the state’s franchise law, participating in a conference hosted by the Texas Department of Transportation.
Tesla Store opening in Westfield Mall, London, Oct 2013
He suggested Tesla and lawmakers could work out a compromise similar to one arranged in New York, where the company operates five stores.
Musk indicated the number of Tesla Stores in Texas could be capped at seven, limiting the company’s footprint in the state.
Meanwhile, in Arizona
While Tesla continues its aggressive Texas lobbying effort, Arizona lawmakers appear to be moving in the direction of allowing direct sales.
Current Arizona law requires carmakers to sell through franchised dealers, but a new bill would reverse that, The Arizona Republic reports.
House Bill 2216 is currently under consideration by the Arizona legislature and–as with pro-Tesla bills in other states–is vehemently opposed by car dealers.
Tesla Store Los Angeles [photo: Misha Bruk / MBH Architects]
A similar bill failed last year, but Tesla and its supporters hope that a new governor and legislature will be more receptive.
Supporters feel encouraged by kind words Governor Doug Ducey has had for companies like Uber, Lyft, and Apple–which recently opened a “digital command center” in Mesa.
Arizona was one of the states in the running for Tesla’s battery-cell “Gigafactory,” as was Texas.
Both states lost out to Nevada, which also made direct sales explicitly legal.
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