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Blog of Mass Destruction

"Wide Open For Business?".....Ask Tesla

By The Reverend Published: March 19, 2014

More than one cocky Texas governor has explained the state's proud anti-government-interference-in-business tradition. Texas, by gum, is wide open for business, and don't you ever forget it. The one thing Texas conservatives hate....and I don't mean maybe....is big gub'mint regulations and restrictions impeding business in the state.

Tesla Motors.....cannot sell its upscale electric cars directly to consumers in Texas because of long-standing state laws protecting and regulating auto dealerships.

Tesla currently showcases vehicles at "galleries" in Austin and Houston, but state law prohibits employees from discussing the price or any logistical aspect of acquiring the car. That means prospective buyers in Texas must order the car from Tesla’s headquarters in Palo Alto, Calif. The cars are then delivered in a truck with no company markings, per Texas law, and customers even have to unwrap their new automobiles themselves, because the law prohibits Tesla's in-state representatives from doing, saying or touching anything related to selling or delivering cars.
 

Feel that Texas freedom?

You see, what Texas officials don't do....is put nitpicky, bothersome and totally unnecessary business regulations between business and consumers. That's what makes them special. You know, because all those pesky regulatory laws translate into higher prices for consumers and lower revenues for business.....a totally unacceptable dynamic in a Freer Than Free state like Texas. Texas is not just open for business, it's wide open for business.

Tesla, however, calls the Texas system antiquated and a threat to its livelihood. The company's business model, it argues, is more efficient than traditional ones because it bypasses middleman dealers......“Really what they are doing is making it tougher for customers.”

Tesla is facing similar "freedom" in the state of New Jersey where perennially corrupt politicians, like GOP Governor Chris Christie, are keeping Tesla sales in the state from blossoming by resorting to 'crippling regulations on business'.....

Tesla chairman Elon Musk said..... if you believe that the laws on the books protecting dealers are there for the good of the consumer, "Gov. Christie has a bridge closure he wants to sell you."

I kind of liked that response.

Once again, we see how very serious GOP governors are about placing any big gub'mint restrictions in the way of business fulfilling demand from consumers.

A long time ago, in my very small personal world, I was confronted by a fellow business dealer who urged me, as a fellow dealer of similar products, to hold my price point close to his, and others,.....so that profit levels could be maintained for all dealers. I listened....but I'm kind of rebellious....so I did what I wanted to do....competed for business by offering lower prices.

Point being, the last thing many businesses and industries really want to do....is compete in an authentic "free market" economy. I think that's what is going on in New Jersey and Texas vis-a-vis Tesla.

Meanwhile, because I am almost dumbfounded by the description, if you are a Texas citizen who ordered a Tesla directly from California....you may mistake the arrival of your new electric car as something that routinely happens in, say, North Korea...."The cars are then delivered in a truck with no company markings, per Texas law, and customers even have to unwrap their new automobiles themselves, because the law prohibits Tesla's in-state representatives from doing, saying or touching anything related to selling or delivering cars."

....those restrictions, which rank among the country’s strictest, could harm Texas’ chances of landing the $5 billion lithium-ion battery plant Tesla plans to construct by 2017. Texas was one of four states — along with Arizona, Nevada and New Mexico — in the running to house the wind- and solar-powered “gigafactory,” which Tesla says would span as many as 1,000 acres and employ about 6,500 people.

Yes, this appears to be a case of state regulatory controls, aka Big Gub'mint, impeding the divinely-ordained right of business to satisfy consumer demand while simultaneously prohibiting job creation. But it just can't be. Why? Because Rambling Rick Perry, Texas GOP governor, still has this on his "Governor Perry's Principals For A Stronger Texas" website....

As part of his effort to unleash the entrepreneurial power of Texans, Gov. Perry has worked to cut away the miles of red tape that governments traditionally use to strangle innovation, stifle investment and squash job creation.

"Unleashing the entrepreneurial power" ....I'm guessing again...is not how Tesla CEO Elon Musk would describe his experience with Texas business regulatory controls.

It's not what they say they do that counts.....ever. It's what they do.

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