No Teslas In Texas

The Texas state legislature announced this week that it will not pass a bill allowing Tesla Motors Inc TSLA 0.86% to sell its automobiles directly to consumers in Texas.

If Tesla wants to sell cars in Texas, it is going to have to do it via local franchise dealers.

No Surprise

Understandably, Tesla prefers to sell its automobiles directly, but Texas is just the latest state to ban direct sales. Auto dealer lobbyists have been fighting Tesla tooth and nail to prevent the company from skirting franchise laws in place to protect local automobile dealerships.

Musk Speaks Out

Following a similar ban on direct sales in New Jersey last year, Tesla CEO Elon Musk…

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