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5 Reasons Why Texas and Tesla Deserve Each Other

Tamara Rutter
April 16, 2013

Tesla Motors (NASDAQ: TSLA) CEO, Elon Musk, knew that changing the rules of retail in the auto industry wouldn't be easy. However, the state of Texas now poses the biggest threat to Tesla's disruptive retail strategy to date. The Lone Star State currently has strict regulations in place, which prevent Tesla from selling its all-electric vehicles directly to Texas consumers.

As the second-largest and second-most-populous state in the country, this creates a serious roadblock for the EV start-up. In an effort to transform the dreaded dealership experience, Musk pleaded Tesla's case in the heart of Texas last week saying: "What we're asking for from the Texas Legislature is really simple, it's just, let us sell our products directly to the people of Texas like we're able to do in the rest of the country."

Tesla has testified and won cases in other states including New York and Massachusetts, in which dealership associations had sued the EV maker. In fact, Tesla is now allowed to sell directly to consumers in the following states: New York, Florida, New Jersey, California, Colorado, Oregon, Washington, and Massachusetts. While this is certainly a start, Texas is a big piece of the puzzle for Tesla.

Supporting American business in Texas
State Sen. Craig Estes and state Rep. Eddie Rodriguez have already showed their support by filing bills on Tesla's behalf, according to the company. And why shouldn't they? Tesla and the state of Texas are well matched for a number of reasons.

The most obvious of these is the fact that Tesla is an American company, creating American jobs -- and what's more American than Texas? In his meeting with Texas legislators, Musk even hinted that Tesla could build a second manufacturing plant in Texas in coming years. "When we do establish a manufacturing plant outside of California, Texas would be a leading candidate f