Tesla proposal to sell cars directly to buyers dies in Legislature



Keep going for a look back at other things banned by Texas and Texas cities. less A pair of bills backed by Tesla Motors died in the Texas Legislature Monday. They proposed allowing auto manufacturers to sell vehicles directly to consumers.

Keep going for a look back at other things banned by ... more A pair of bills backed by Tesla Motors died in the Texas Legislature Monday. They proposed allowing auto manufacturers to sell vehicles directly to consumers. Photo: Tyler Sizemore, Staff Photographer Photo: Tyler Sizemore, Staff Photographer Image 1 of / 26 Caption Close Tesla proposal to sell cars directly to buyers dies in Legislature 1 / 26 Back to Gallery

A pair of bills backed by Tesla Motors died in the Texas Legislature on Monday at the end of a rancorous session.

The company had supported legislation introduced in the state House and Senate in March that would have allowed automakers to sell vehicles directly to drivers. That business model has long been prohibited in Texas, which requires consumers to buy cars and trucks through franchised dealerships.

The company has tried twice before to dismantle such regulations with narrow exemptions for manufacturers like itself. This time, it tried a broader approach that would have allowed all types of manufacturers to engage in direct auto sales.

"Once again, the legislature failed to act on Texans' demands for 21st century car-buying options, meaning the state will continue to fall behind and lose out on valuable economic development opportunities," the company said in a statement.

State Rep. Jason Isaac, R-Dripping Springs, introduced the bill in the House. State Sen. Bob Hall, R-Edgewood, filed the companion bill.

RELATED: Tesla's latest Texas proposal would let all carmakers sell directly to customers

Such proposals face deep opposition from Texas auto dealerships, which insist that consumers benefit from laws that grant them exclusive rights to supply vehicles to drivers.

The company suggested that the fight isn't over. It has for years fought to roll back regulations in states where direct-to-consumer sales are prohibited.

"We will continue to advocate for fair, common-sense reforms that will allow Tesla to invest in Texas and provide consumers the same choices car-buyers in nearly every other state enjoy," the company said.