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Texas Lawmakers Want To Stop Tesla From Fixing Its Own Cars (electrek.co)

In Texas the local car dealer lobby has blocked Tesla from selling its cars directly to customers. They're using old laws meant to prevent car manufacturers from competing with their own local dealers -- but Tesla never had any local dealers!

And according to Electrek, it gets worse... Despite this issue, Texans have bought thousands of Tesla vehicles, which the automaker delivers from other states to comply with the law. Tesla has been able to service those vehicles through its own service centers, which are not subject to those same direct-sale rules, but now dealers are even going after Tesla's right to service its cars.
Quartz offers some additional coverage: At issue is a battle over money. Car dealers derive much of their revenue from selling and (especially) servicing vehicles. Tesla's direct-to-customer sales and service stations are a threat to that business model since they cut dealers out of the transaction.

40 of 255 comments (clear)

  1. Ah yes. Good 'ol Texas by quonset · · Score: 5, Insightful

    The state which prides itself on getting big government out people lives until the people need the power of big government to kill competition.

    1. Re:Ah yes. Good 'ol Texas by TomR+teh+Pirate · · Score: 5, Insightful

      And it's not just that the legislature of big oil is trying to pick the automotive winner, but they are doing it on the backs of Texans' rights to choose for themselves what car they can buy.

    2. Re: Ah yes. Good 'ol Texas by Anonymous Coward · · Score: 2, Insightful

      Itâ(TM)s not big oil. Thereâ(TM)s plenty of uses of oil and plenty of demand elsewhere for their product to not worry about the the threat from Tesla to theTexas auto market. Especially since they donâ(TM)t offer a truck.

      No this is all big dealerships pushing this. If they sold electric cars, theyâ(TM)d still be pushing this as they are an entrenched interest trying to use regulators to force a competitor out of the market.

    3. Re: Ah yes. Good 'ol Texas by Anonymous Coward · · Score: 2, Interesting

      I figure this would be the kind of thing that Democrats would like since it forces automakers to pay out more money to workers. Car makers can't provide certain firmware updates over the air in most states because it's considered repair work. So what happens instead is they have to pay a dealership to manually install the update, thus giving a mechanic more work. Classic example of featherbedding, which unions also love forcing on businesses, in order to slow things down so that people have to pay more so that somebody has a job.

      It's a total load of shit no matter who does it, and very much a racket, and it's part of the reason why most automakers rarely issue firmware updates to their cars.

      Except for Tesla, who isn't beholden to dealerships. Fortunately, they found a loophole in Arizona's laws so they can do whatever they want here, including running their own dealerships. The law was written so that car makers aren't allowed to compete with existing third party dealerships; there are no existing third party Tesla dealerships in Arizona. A court ruled in favor of Tesla on this, so Tesla can (and does) sell cars right out of their showrooms here; typically they sell the ones that have been test driven, and at a discount.

    4. Re:Ah yes. Good 'ol Texas by ShanghaiBill · · Score: 5, Insightful

      Texas will turn purple by 2028 at the latest and we'll finally be able to put all of this nonsense behind us once

      This is not a Red vs. Blue issue. Plenty of Blue states have anti-competitive protection for dealers.

      Deep blue Connecticut and New York protect dealers, as do crimson red Utah and Oklahoma.

      Cronyism, corruption, and rent-seeking are nonpartisan.

    5. Re:Ah yes. Good 'ol Texas by Registered+Coward+v2 · · Score: 5, Insightful

      The state which prides itself on getting big government out people lives until the people need the power of big government to kill competition.

      Let me explain: Big government doing something I don’t like or stopping me from doing something: Big government bad; doing something that benefits me or stops someone else from doing something I disapprove of: Big government good

      --
      I'm a consultant - I convert gibberish into cash-flow.
    6. Re:Ah yes. Good 'ol Texas by dryeo · · Score: 4, Interesting

      Of course it matters if you want to fix the problem. First you need to identify the problem. Which in this case seems to be corruption and not big government as you can have a really small government that does nothing but protect business interests.
      One possible fix might be to limit bribery, but that means intruding on peoples freedom.

      --
      https://en.wikipedia.org/wiki/Inverted_totalitarianism
    7. Re: Ah yes. Good 'ol Texas by kenh · · Score: 4, Insightful

      The issue is not that the GM, Ford, or Chrysler dealers want to fix Teslas, it's that they want to make life miserable for anyone that buys a car from someone like Tesla.

      Tesla has showrooms in Texas, and they deliver and service cars in Texas, but they can't sell you a car in-person in Texas.

      The big three automakers want to make buying/owning a Tesla difficult, to make their products more appealing.

      --
      Ken
    8. Re: Ah yes. Good 'ol Texas by c6gunner · · Score: 2

      You don't understand what the term "big government" means in the context of the USA. It isn't specifically referring to size, and it typically only refers to the federal government. People have less of an issue with government overreach at the state and municipal levels since you can always move cities or states; moving to another country is a lot harder.

    9. Re:Ah yes. Good 'ol Texas by Anonymous Coward · · Score: 2, Interesting

      The state which prides itself on getting big government out people lives until the people need the power of big government to kill competition.

      Has the GOP been consistent in any way between (a) what is says, and (b) what laws it passes when elected? At least when it comes to economic issues? Seems to me they talk to 'grassroots' folks, but walk to the plutocrats once in.

      Perhaps they're more consistent with regards to social issues? Though the Right has the religious folks who think drugs are bad, and also tend to have many laissez-faire / libertarian folks who thing "let people do whatever"--so the tent is a bit confused in that regard.

    10. Re:Ah yes. Good 'ol Texas by rtb61 · · Score: 2

      The epitomy of small government, MONARCHY, so how does everyone feel about a government of '1', that owns everyone else and well, if you disagree, the would publicly torture your to death.

      Democratic Government is meant to be absolutely huge it should include everyone. The bullshit about small government, people can believe any kind of anti-themselves, lets all forget the logic of a government of the people, by the people and for the people, ohh no they want small government, the government of the few, by the few and for the few and fuck everyone else and fuck em hard again and again and again.

      --
      Chaos - everything, everywhere, everywhen
    11. Re: Ah yes. Good 'ol Texas by jimcisme · · Score: 2

      Just like all government, ours here in Texas is corrupt. It has absolutely nothing to do with the people, it's only money that has a voice in our state capital. Just like every other state in our failing democracy. Look at history and you'll see our future. It just a matter of time and we are definitely on the downward slope.

    12. Re: Ah yes. Good 'ol Texas by Anonymous Coward · · Score: 3, Insightful

      Bullshit. The 'big three automakers' don't give two fucks. The DEALERSHIPS, of which there are MANY, care a great deal, because they are the ones who stand to lose money.

    13. Re:Ah yes. Good 'ol Texas by Can'tNot · · Score: 2

      Cronyism, corruption, and rent-seeking are nonpartisan.

      In this case it's not so much about those things, rather it's mostly just about age. Those laws were enacted to protect dealers during the great depression, when the manufacturers were exploiting their relationship to force the dealers to buy inventory that they knew wasn't going to sell.

    14. Re: Ah yes. Good 'ol Texas by thegarbz · · Score: 2

      Not giving a fuck is not the same thing as happily letting someone else fight your battle for you. You're right this is dealership's fault. You're wrong that the big 3 don't give a fuck let alone two.

  2. Mobile repair seems like an awesome service to me by SuperKendall · · Score: 2

    I really like the thought of not having to take a car in for service, that someone can just come out and repair it.

    One thing I've wondered is how the fix some things without a real lift - like if they need to replace some parts of the suspension. Seems like they would still have to take it to a real shop for some more advanced repairs.

    Since an electric car is generally simpler. I had been wondering what kinds of repairs people were even calling in...

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  3. All or nothing by Anonymous Coward · · Score: 2, Insightful

    Did they already get John Deere to open up their software?

  4. Re:Right to repair? by Gavagai80 · · Score: 5, Insightful

    Right to repair works both ways. Every mechanic should have a right to work on Teslas if they so choose, but Tesla should also have a right to service their own cars if they choose.

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  5. My car mechanic by DogDude · · Score: 5, Interesting

    My mechanic is planning on specializing in vintage cars as the electrics start happening. He expects it'll be a pretty quick switch. He says that there will be very little to fix outside of suspensions, and occasionally brakes. Even brakes won't need as much fixing, because electric cars will probably all use regenerative braking. Electric motors, of course, last a very, very, very long time, and generally, they're so cheap that it makes more sense to replace a motor than taking the time to re-wind the coils.

    --
    I don't respond to AC's.
    1. Re: My car mechanic by Anonymous Coward · · Score: 2, Interesting

      It will be exciting seeing old vintage cars being brought back to life by converting them to electric. There is a business here and it is already happening in Europe.

    2. Re:My car mechanic by SvnLyrBrto · · Score: 3, Insightful

      I don't see the switch being all *that* quick. The big blocker for Tesla, I think, is still charging. I would likely have bought a Tesla already... If I already owned my own house and could have the home charger installed. But alas, I rent right now. Driving to the nearest supercharger every time I need a juice up is in no way practical. And I suspect that there are a great many people who are in a similar situation.

      Now, buying a home is on my near-to-mid-term horizon. But then there's the problem that I will *just* have bought a HOUSE. And dropping another $50-100K on a car would be significantly less reasonable... at least until 2021, at the earliest, when 45 could be expunged from the White House and the mortgage and itemized tax deductions, which he gutted, could be restored.

      Now... If Tesla were, instead of just superchargers which really only solve the "road trip" problem, to buy one of the major gas station brands and convert it to superchargers chain-wide... I think *THAT* will be the watershed moment that will cause the quick switch of the general masses to electric.

      --
      Imagine all the people...
    3. Re:My car mechanic by jeff4747 · · Score: 2

      Now... If Tesla were, instead of just superchargers which really only solve the "road trip" problem, to buy one of the major gas station brands and convert it to superchargers chain-wide... I think *THAT* will be the watershed moment that will cause the quick switch of the general masses to electric.

      Far more likely is that rental properties will install chargers. First as a way to attract higher-paid customers, then eventually it will become a norm to have it, as much as it is a norm to provide parking.

      The chargers aren't a whole lot of money (like $1-2k for an outdoor unit), and the installation is very basic electrical work as long as there is an easy route to run the power.

      As for places without parking, well first the garages where you can rent parking will get chargers, probably at a faster rate than properties with parking. After that, there should be enough of a critical mass for people to start installing on-street chargers, vaguely like parking meters.

  6. Re:Mobile repair seems like an awesome service to by crow · · Score: 5, Informative

    Nope. I had mobile repair replace my parking brakes (warranty issue) and rotate my tires. He did it in my garage with a jack. The whole point of mobile service is that while it takes the repair guy a bit more time (both in driving and in working), it saves them a ton of overhead in buildings, so it ends up being cheaper.

  7. Not sure why Texas is being picked out by Solandri · · Score: 4, Informative

    The same type of laws are present in all 50 states. Most of the states have had those laws for 50+ years, with a few going back 100 years. A few stragglers joined in the last 30 years, with Texas being the last one. So those accusing Texas of doing this because of some anti-Tesla agenda should read up on history, and look into their own states' laws before throwing stones. It'll be a helluva lot more productive towards repealing these laws or updating them to reflect how cars are purchased and repaired in the 21st century.

    1. Re:Not sure why Texas is being picked out by Aighearach · · Score: 3, Insightful

      That's a complete horse-shit article.

      It just waves its hands saying all the states have these laws. My state doesn't. It doesn't explain that in any way.

      The reason it is obviously blatant lies is that it gives a category for what laws it is talking about, but then doesn't define who is included in the category. So any state with any law that says anything about that category of situations is included.

      It would seem from the wording they use that Tesla wouldn't be allowed to run their own dealships; except that there aren't any details that would let you judge that. And of course that's because they're simply using misleading wording to trick you. To trick you. Not to trick me; I knew they didn't give me details, simply because I didn't find any details. And I don't put any value in their conclusions, only in their arguments. And they didn't make any.

  8. Tea for Texas by PopeRatzo · · Score: 3, Interesting

    Forget Chicago, New York, California. The state of Texas has by far the most corrupt politicians in the nation. From the governor on down to local sheriffs, they all have their hands out to someone who's only happy to put a little something in it.

    This came as a surprise to me when lived in South Texas. Texans love to talk about their love of freedom and hatred for big government and regulation, but it turned out to be the exact opposite. This is a real shame, because the people of Texas, the actual citizens, are some of the nicest, most decent people you could meet. But decades of unabashed corruption and gerrymandering have completely destroyed anything like true representation. Only recently has this been changing a little bit, because the energy industry in Texas is slowly losing it's mojo.

    They've covered in up using Koch Brothers money and energy industry wealth, but if you look closely, you quickly learn that Texas state politicians are so corrupt it would make a Chicago alderman blush.

    --
    You are welcome on my lawn.
    1. Re:Tea for Texas by alvinrod · · Score: 4, Informative

      I was kind of curious so I did some quick Google searches. There was one article based on a report about which states are most susceptible to corruption. The top state was curiously enough North Dakota which apparently is due to the fact that they have few laws or regulations in place designed to prevent it. Texas was 1 of 16 states with a passing grade in that report.

      Another article discussed the results of a study that looked at convictions for federal anti-corruption laws to establish rankings. Here the most corrupt state was Mississippi. I had to click through to the study since Texas wasn't in either the top or bottom 10, but it's listed as the 18th least corrupt state in the rankings.

      One article that did report Texas as corrupt (it only came in 15th) was one which cited a report that looked at laws in systems each state has in place to prevent or curtail corruption. In this case the worst rated state was Wyoming.

      FiveThirtyEight also has their own article from a few years back that delves into the topic. Texas does have a lot of corruption convictions, but on a per capita basis, it's in the top third. In this assessment, Louisiana is the most corrupt based on convictions per capita, Kentucky had the worst reporter rating, and Georgia is indicated in having the greatest lack of laws to prevent corruption. Oregon, Massachusetts, and New Jersey are respectively the least corrupt states based on those same categories.

      In conclusion, you can apparently measure corruption in several ways and get a variety of results. Texas seems to be pretty middle of the pack in an overall sense.

    2. Re:Tea for Texas by wisnoskij · · Score: 2

      1. It would seem to me that logically, the more corrupt a state become the more anti-corruption laws it will have. If the leaders are all honest, no one is going to write laws, at least not anymore than it generally being illegal to be corrupt.
      2. The more people convicted for corruption, the less corrupt a government is. It is surprisingly easy to be accidentally corrupt. Their will always be people to arrest and punish for corruption. It is only serious government breaking corruption when people stop getting tried and punished for it.

      --
      Troll is not a replacement for I disagree.
  9. Re:What's the alternative? by squiggleslash · · Score: 3, Interesting

    While I don't agree Texas should ban anyone, least of all the manufacturer, from repairing Teslas, if third parties are unable to repair Teslas then that would also be a serious problem, and would be one warranting government intervention. You shouldn't be dependent upon a manufacturer to have their products repaired.

    --
    You are not alone. This is not normal. None of this is normal.
  10. Re:Texas us right in this... by EnsilZah · · Score: 5, Insightful
  11. Re:Mobile repair seems like an awesome service to by dryeo · · Score: 2

    Most of those jobs can be done by a mobile mechanic though the suspension repair may need a trip to the alignment shop at the end.
    Source, I've done most of them at home with a jack and jack stands.
    For tires, there are fully equipped tire trucks and that is the way big trucks often get their tires fixed.

    --
    https://en.wikipedia.org/wiki/Inverted_totalitarianism
  12. Re: Mobile repair seems like an awesome service to by kenh · · Score: 4, Informative

    He is no more at risk with an auto repair tech than he is with a plumber, appliance repair, HVAC repair, etc.

    --
    Ken
  13. Re:Mobile repair seems like an awesome service to by mspohr · · Score: 4, Informative

    Tesla mobile service is awesome. They come to you and fix the car. Since Teslas don't need any routine maintenance (no oil change, tuneups, etc.), you only need service when something breaks. Again, since the cars are so simple (electric motor, big battery) there's not much to go wrong.
    In 75,000 miles, I've only needed service twice. Once for water in a tail light and once for a door handle repair. Mobile service came and fixed the door handle. Fast and easy. (Tail light was repaired under warranty before mobile service was available.)
    Auto dealers are pissed at Tesla because EVs don't need any of their overpriced service. So happy I don't have to go to the dealer for oil change, etc.

    --
    I don't read your sig. Why are you reading mine?
  14. Re:Texas us right in this... by mspohr · · Score: 2

    Anybody can fix any Tesla. Anybody can buy parts. Anybody can sell parts.
    (Check out Rich Rebuilds on YouTube.)

    --
    I don't read your sig. Why are you reading mine?
  15. Not sure if you think you're being cute by Uberbah · · Score: 4, Insightful

    The same type of laws are present in all 50 states.

    And how many states are enforcing those laws against Tesla? That's the only thing relevant here, and Texas is the only state making noises about blocking not just sales, but repairs.

  16. Re:This IS the GOP by Major+Blud · · Score: 4, Informative

    Texas - as Red and GOP as you can get

    Unlike Connecticut, New York, Michigan, Pennsylvania, which are Blue and restrict manufacturer-direct sales completely or to a large degree..... https://en.wikipedia.org/wiki/... And if you think that manufacturers wanting to sell directly to consumers is a new idea, then I have a bridge to sell you.

    --
    If you post as Anonymous Coward, don't expect a reply.
  17. Re:Mobile repair seems like an awesome service to by LinuxIsGarbage · · Score: 4, Interesting

    Tesla mobile service is awesome. They come to you and fix the car. Since Teslas don't need any routine maintenance (no oil change, tuneups, etc.), you only need service when something breaks. Again, since the cars are so simple (electric motor, big battery) there's not much to go wrong.
    In 75,000 miles, I've only needed service twice. Once for water in a tail light and once for a door handle repair. Mobile service came and fixed the door handle. Fast and easy. (Tail light was repaired under warranty before mobile service was available.)
    Auto dealers are pissed at Tesla because EVs don't need any of their overpriced service. So happy I don't have to go to the dealer for oil change, etc.

    In my experience modern ICE cars don't suffer a lot of severe powertrain related breakdowns. More than 50% of repairs is stuff that would impact an electric car the same: Tie-rod ends, struts, etc.

    Meanwhile Tesla owners seems to have a lot of warranty claims for door handles (WTF? How can these break?) and "Drive Units" (AKA complete powertrain). Teslas actually have a poor reliability rating.

    Don't get me wrong, as a nerd I like electric cars. Tesla has made very interesting models, and really pushed range. I'm also perfectly fine with Tesla trying to "disrupt" the dealership model, however there seems to be a reality-distortion-field around them.

    Also, I'm a fan of right to repair. Tesla doesn't seem like they are. Third-party repairs? LOL.

  18. Re:Ah yes, good ol' California by geoskd · · Score: 4, Interesting

    If it was paradise, your numbers would not be falling. I am also looking at you NY

    I can't speak about California, but NY used to be a blue collar state. Those days are long gone. Upstate is losing population in droves because there are no opportunities there at all, and NYC is all but unlivable for anyone with an IQ less than 100. Everything I understand about California suggests it is the same there. The "blue" states have policies that are actively driving away stupid people. Other states have policies that appear more welcoming (by way of blue collar jobs), but generally guarantee that the next generation will be no better than the last. That only goes so far, and eventually all of those jobs go to automation anyway.

    Just like opportunity, social mobility looks an awful lot like hard work and, in this country, politicians don't have the foresight to know what they are looking at.

    --
    I wish I had a good sig, but all the good ones are copyrighted
  19. Re:Mobile repair seems like an awesome service to by mspohr · · Score: 5, Informative

    Modern ICE cars do need oil changes and have finicky emission systems which require regular maintenance.
    Teslas really don't need any routine maintenance. Even brakes seem to last forever because of regen.

    The early production of the door handle retraction mechanism had a weak pivot gear which broke. The replacement is much stronger. Same with the early "drivetrain failure" which was just a "milling sound" due to lack of lubrication in early production models. The whole drivetrain can be dropped by removing about 4 bolts so the easiest thing to do was exchange them and send them back to the factory for rebuild. My car (a 2015) fortunately hasn't had that problem.

    The reality is that the cars are very reliable and people have driven them hundreds of thousands of miles with very little maintenance or repair. Even the batteries are proving to be be solid with less than 10% degradation over 100,000 miles so they should last a lot longer than an ICE car.
    Tesla has loosened up their policy on parts so anyone can buy any replacement part and shop manuals and of course there are salvage parts available so anyone could open up a Tesla repair shop. Problem is that they don't need much in the way of maintenance and repair so not much of a market.

    --
    I don't read your sig. Why are you reading mine?
  20. what about the customer's rights? by zennling · · Score: 2

    but now dealers are even going after Tesla's right to service its cars.

    what about the customer right to get their car serviced through someone of their choosing? i thought capitalist america was ostensibly all about customer choice?