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How Car Dealership Lobbyists Successfully Banned Tesla Motors From Texas

Funksaw writes "In a political op-ed on his blog, long time Slashdot reader and contributor Brian Boyko (the guy who did that animated Windows 8 video) — now a candidate for state representative — explains how lobbyists from car dealerships successfully banned Tesla Motors from selling cars in Texas. From the article: 'Tesla Motors doesn't just present a case study of why a lack of campaign finance reform blocks meaningful reform on the issues that Democrats care about, like climate change and health care. A lack of campaign finance reform blocks reforms on both the Left and the Right. Here's the big elephant in the room I'd like to point out to all the "elephants" in the room: With a Republican-controlled legislature, a Republican executive, and many conservatives in our judiciary, why the hell don't we have free markets in Texas? Isn't it the very core of economic-conservative theory that the invisible hand of the free market determines who gets what resources? Doesn't the free market have the ability to direct resources to where they can most efficiently be used? I'm not saying the conservatives are right in these assumptions; but I am saying that our broken campaign finance system makes a mockery of them.'"

30 of 688 comments (clear)

  1. Free Market? LoL by meerling · · Score: 5, Insightful

    They don't want a Free Market, they want a Free For Them Market, screw everyone else.

    Also, with how I saw Red McCombs screwing around San Antonio while I lived in Texas, it doesn't surprise me one bit.

  2. Re:Free Market? LoL by Daniel+Dvorkin · · Score: 5, Insightful

    Yep. Anyone can describe a utopian economic system ("Under communism, everyone will work together for the common good!" "Under capitalism, competition and individual choice will lead to the greatest possible efficiency!") but in the real world, they all tend toward cronyism and corruption. Every single time.

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    The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
  3. Wrong party by Libertarian_Geek · · Score: 5, Insightful

    Republicans don't want free-market.
    Democrats don't want free-market.
    They both want different lobbys to pay them (in campaign donations) for the "privilege" of not being encumbered by regulations of the other party.

    Libertarians (both big "L" and little "l") generally want free-markets.

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    1. Re:Wrong party by dkleinsc · · Score: 5, Insightful

      There ain't no such thing as a free market.

      Either there's government enforcing at least basic rules about how the market operates (e.g. no "offers you can't refuse"), or there's non-market influences on the decisions of actors in that market (e.g. "I'm bleeding to death, it doesn't matter that the hospital in the next town offers cheaper service").

      What Libertarians tend to actually want is the ability for the more powerful private actor to take advantage of the less powerful private actor with impunity. The more powerful private actor has a key advantage: They have a better ability to research and organize alternative transactions. That allows them to control the pricing in a way that the less powerful actor cannot.

      For a concrete example, consider farmer Bob deciding whether to sell his corn to Archer Daniels Midland for $4.75 per bushel. Look at his options:
      - Sell at the offered price.
      - Not sell at all. That will probably cause him to lose his farm, because without this sale, he doesn't pay off the bank.
      - Try to sell to someone else. But since there's no one besides ADM who buys corn in his area, the only way Bob could pull this off is to invent his own transport and distribution network, from scratch.
      So what you have is not a free market, but a ADM-controlled market that is only free to ADM.

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    2. Re:Wrong party by PopeRatzo · · Score: 5, Insightful

      The problem with most people who describe Libertarianism is that they have no fucking clue what they're on about

      And that goes double for Libertarians.

      Just in the past week, we've had "Libertarians" support restrictions on abortions, both for and against the Keystone XL pipeline (private property rights, yes!, private property rights for anyone but corporations, no!) and both for and against gay marriage.

      Read Reason Magazine for six months if you really want to learn how childish and confused what passes for "Libertarianism" really is. It's the political philosophy of undergrads, and the only reason it has as much currency in the US as it currently does is because some very rich people think they can use it to further erode economic and social liberty. And because it's the political philosophy of undergrads, some very cynical people are manipulating it to create and maintain a feudal system.

      History will look back at the early 21st century Libertarianism about the way it looks back on the Utopianism of the late 19th century, another childish and confused political philosophy.

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      You are welcome on my lawn.
    3. Re:Wrong party by jandrese · · Score: 5, Insightful

      Yep, that was some fancy talking that did absolutely nothing to address the problem, exactly the sort of thinking you get from Libertarian institutes.

      The solution presented is "Don't have commons, designate an owner for everything, and make them responsible for it." Basically, mass private ownership of everything, even the environment. You would have an air baron whom is in charge of the atmosphere and whom you have to pay to use it. Because he owns it, he would want it to be clean as possible and wouldn't allow people to pollute it without paying him. But that doesn't work because it assumes the owner is deeply concerned with long term sustainability instead of short term profits--a proven falsehood when examining corporate behavior today, plus it arbitrarily gives enormous amounts of power to individuals. If you're going to do that, you might will probably want elect them, and if you're electing them, you're basically talking about a government and suddenly it's socialism writ large. If you don't elect them, then you're back to water barons, which is a monumental failure from a socioeconomic perspective.

      There are lots of problems the free market cannot solve, just like there are lots of problems collective rule cannot solve. That's why it is important to choose the right solution for every problem. People who think there is only one true path will end up with lots of bad and inefficient solutions that often just make the problems worse.

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  4. What he's discovering here... by roc97007 · · Score: 5, Insightful

    ...is that there's a difference between "Republicans" and "Conservatives".

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    Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
  5. wrong market by Anonymous Coward · · Score: 5, Funny

    The free market here is in politicians, not autos.

  6. Conservatives? by intermodal · · Score: 5, Insightful

    I think it's cute that the synopsis above thinks Texas has a lot of conservatives in its government. Republicans != conservatives, at least not universially.

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  7. This could backfire big-time for Texas by Animats · · Score: 5, Funny

    Texas is trying to convince Space-X to build a launch facility near Brownsville, TX. Someone may have forgotten that Elon Musk runs both Space-X and Tesla.

  8. Re:Free Market? LoL by MickyTheIdiot · · Score: 5, Insightful

    Republicans aren't free market libertarians, they are corporatists. Corporatists go complaining to the government when their long standing business model is challenged. Look throughout US history and you'll see examples going all the way back to the decline of the railroad empires.

  9. Not a new law... by Anonymous Coward · · Score: 5, Insightful

    It wasn't a new law that kept Tesla out of Texas. The law that car makers couldn't sell direct to consumers in the state has been there for years. Tesla can sell all the cars he wants in Texas. He just has to get someone to open dealerships just like GM, Ford, Toyota and all the others.

  10. lobbying for their own exemption by james_shoemaker · · Score: 5, Informative

    I read the laws tesla is lobbying for on their website, it's a rather specific exemption from the dealership law for basically them:

    "a manufacturer of only all electric-powered or all battery-powered motor vehicles, or a distributor of only all electric-powered or all battery-powered motor vehicles, that (i) owned and operated a new motor vehicle dealership in the United States on or before March 1, 2013, and (ii) has never sold its line make in the United States through an independent franchised new motor vehicle dealership, may own or operate a dealer or dealership, or act in the capacity of a dealer, at any location within the state and may obtain a dealer general distinguishing number under Section 503.029 of the Transportation Code."

          "let's write ourselves an exemption, but slam the door on anyone coming after us"

  11. Austin showroom by 605dave · · Score: 5, Interesting

    Tesla is not banned from Texas, they are banned from having dealerships. I just test drove (and will probably buy) the Tesla sedan last Friday here through the Tesla showroom at the Domain in Austin. I now have to simply go online and order one, and it will be delivered right here to Austin, Texas. In addition Tesla has an agreement with a local repair shop for any servicing, and they are building a charging infrastructure here in the state. So you can't say they've been banned, only that they have been prevented from having a tradition all in one place solution.

    And I find it so amazingly ironic that all of the Republicans in this state who pontificate about the free market and demonize regulation would fight to keep the dealership system. It is exactly the kind of regulation they usually abhor, and prevents the capitalist system from working. The hypocrisy is unfortunately sadly predictable for those on the right in Texas. This is the same group that has passed a voter ID law to suppress the voting rights of the disadvantaged, even though in the last ten years there have only been 4 cases of voting fraud that could have been stopped with the ID law.

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    Be kind, for everyone you meet is fighting a difficult battle. - Plato
  12. Re:Read the article by Anonymous Coward · · Score: 5, Interesting

    In Tesla's defense, would you willingly let your wares be sold by dealerships that are out to make the most money possible from the customers often with dishonest tactics? Car sales people are among the most despised, least trusted people on the planet. I don't think there are any auto manufacturers that wouldn't kick independent dealerships to the curb if they could.

  13. Re:Nobody is Banning Tesla by profplump · · Score: 5, Insightful

    If it's "dishonest" to frame this as "Tesla can't sell cars in Texas" then it's equally "dishonest" to frame it as "Tesla can sell cars in Texas if the follow 'the rules'". Both of those statements are true. Neither tells the whole story. And there's no reason whatever to accept one version over the other.

    In 1960 blacks it was true to say "blacks in MS can vote if they follow 'the rules'". Of course "the rules" were desperately unfair both in conception and enforcement so in practice kept blacks from voting. Hence it was also true to say "blacks in MS are not allowed to vote". Just like in the Tesla case neither simplistic statement tells the whole story, but neither is any more "dishonest" than the other, they're just framed from different points of view.

  14. Re:Free Market? LoL by durrr · · Score: 5, Funny

    The invisible hand of the market determines who gets what resource by slipping fat checks into the right persons pockets.

  15. Re:Free Market? LoL by MightyMartian · · Score: 5, Funny

    I want to be a corrupt crony, you insensitive clod!

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    The world's burning. Moped Jesus spotted on I50. Details at 11.
  16. Re:Free market, LOL! by sjames · · Score: 5, Informative

    The Ds are what most countries would call 'the right'. They are nowhere near Socialism.,/p>

  17. Re:Free market, LOL! by jandrese · · Score: 5, Insightful

    Yep, socialist just like Obamacare, that thing that makes you buy a corporate product just so taxpayers don't end up footing the bill when you go to the hospital unexpectedly. Practically communist it is.

    The idea that there is anything at all socialist about it is laughable. It's the most corporate healthcare proposal ever devised, which isn't a surprise since it was devised by Republicans. All of the parts that were even vaguely socialist (single payer system for example) were quickly excised because they were a threat to the profit margins of drug makers, insurance companies, and other healthcare services. Most of the real cost saving opportunities were lost because the healthcare industry has a lot of lobbyists and a strong desire not to stop the gravy train.

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    I read the internet for the articles.
  18. Re:Free Market? LoL by TeknoHog · · Score: 5, Funny

    Under capitalism, man exploits man. Under communism, it's the other way around.

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    Escher was the first MC and Giger invented the HR department.
  19. Holy Fuck People! by sycodon · · Score: 5, Insightful

    OK, RTFA.

    EXISTING laws proscribe direct sale to the consumers. Argue if you want about how those laws cam into existence, but they are in fact, the law and predate Tesla.

    Tesla wanted the laws changed. So they were actually the ones lobbying for a special exemption.

    Texas didn't ban Tesla cars, they didn't change the existing laws to accommodate Tesla's sales model. You can argue about that being smart or not, but Telas's cars are NOT banned.

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    When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
    1. Re: Holy Fuck People! by Anonymous Coward · · Score: 5, Interesting

      Correct! Tesla cars are not banned in Texas. There is one driving around my neighborhood. Yes, I live in Texas.

      That said, this is par for Texas politics. I, along with most people I know here, see Tesla and their need for direct sales as a legitimate argument. EV's are not widely available like regular vehicles are, so we need to have a test bed to see how introduction that into the marketplace works. Tesla is that test bed.

      Really, this is about stagnant Republican cronyism that keeps Texas from progressing in areas of economic opportunity. There is a LOAD of oil money flowing in Texas right now, and Texas politicians, apparently here anyways, seem to hate upcoming markets. Ironically, that same oil money elected thes idiots blocking this.

      I'll take a guess and say the right people were not influenced enough for this to pass. In short, they didn't pay enough, or the right people to get this changed.

    2. Re:Holy Fuck People! by smack.addict · · Score: 5, Insightful

      Tesla doesn't want these buffoons selling Teslas because dealers don't really want to say them.

      Sure, they'll pay lip service to the idea. But the problem is that Tesla's have very few moving parts. There's no money to be made off of Tesla services. And that's where these guys make their money. So they will use Tesla's to draw people in, but they'll sell something else.

      By the way, who cares why? What if it is just because Elon hates TADA? In a free market, he should be able to sell direct if he wants.

  20. Re:Free Market? LoL by PraiseBob · · Score: 5, Insightful

    Neither party wants a free market. The difference is one of those parties makes a lot of speeches about wanting a free market.

  21. Re:Slashdot Canidate by Moryath · · Score: 5, Insightful

    There are two kinds of Libertarians.

    Idiots who are too naive to understand that libertarianism leads to monopolism and vulture capitalism, and

    Monopolist Vulture Capitalists.

  22. Re:Read the article by AaronW · · Score: 5, Interesting

    As the owner of a Model S I looked in to the battery longevity. The battery pack should be good for a minimum of 8 years and likely considerably longer. From what information I have been able to gather, the cells are good for 3000 full charge/discharge cycles. Being very conservative and giving 200 miles of range per full charge (which is usually a fair amount more) that works out to 600,000 miles.

    Plus it has been shown that replacing a battery pack is trivial with an automated system that can replace a battery in about 90 seconds.

    The maintenance should be considerably less. The motor won't need an "oil change" for 12 years according to a tech I spoke with at the factory. Tesla has also stated that their goal is to not make a profit on service and maintenance, which is a far cry from the dealerships.

    Right now the only way to buy a Tesla is online through their web site. It was a far more pleasant experience than dealing with dealerships trying to get a car in the color with the options I wanted then having to haggle over the price.

    The maintenance schedule suggests taking the car in once a year for service. The warranty covers everything, including wiper blades and brake pads. Brakes shouldn't need service since they're hardly used. About the only thing they have to do other than inspections are to rotate the tires, change the cabin air filter and the wiper blades. The only other part that might need servicing periodically is the lead-acid 12v battery.

    There are far fewer things to go wrong mechanically with the car considering that there's no transmission (just two gears with a 9.71:1 gear reduction) and an induction motor. As it is, the entire drive assembly can be easily removed and replaced (it takes them under 5 minutes to bolt the whole assembly in place at the factory). There's coolant, but it probably needs changing far less frequently. The AC should be a lot less prone to leaking since there's no engine mounted compressor with flexible hoses. There's no spark plugs, oil pumps, fuel pumps, fuel filters, air filters (other than cabin), EGR valves, oxygen sensors, catalytic converters, etc to wear out. Similarly, there's no oil changes, problems with warped heads, valves, camshafts, piston rings or all the other parts that wear. The only thing that can basically wear is the differential and bearings and the standard suspension stuff.

    Dealerships are just a way to insert middlemen where they're not needed, and they're a monopoly by design. Usually you can't put in a competing dealership within a certain distance of an existing dealership unless they sell a different brand of car. That gives dealerships a local monopoly.

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  23. Re:Free market, LOL! by TapeCutter · · Score: 5, Interesting

    Civilizations are measured by how they treat their weakest citizens..

    Over here in communist Australia my government health care levy covers myself and about 6 other people for less money than I could insure a family of four in the US. UHC has received bipartisan support in Oz since the right wingers gave up the fight to get rid of it in the late 80's (after it had been running for over a decade), according to numerous polls 80% of voters would now vote against a candidate who tried to fuck with it. Recently a similar scheme for the disabled was instituted with bipartisan support and strong voter approval. Personally I am proud to be part of those schemes in communist Australia.

    Seriously, writing "communism" to describe the above state of affairs felt wrong even though I was aiming for sarcasm. Americans already pay about the same per-capita tax on health as Aussies do and have much better economies of scale, but then they have to go out and buy health insurance, wtf? We have statistically superior health outcomes to boot, so someone in the US must be making huge profits from other people's misery, I wonder who?

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  24. Re:Free Market? LoL by gmhowell · · Score: 5, Funny

    I want to be a corrupt crony, you insensitive clod!

    This is the internet, you're going to have to settle for being a corrupt brony.

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