Monday, May 11, 2020

Musk threatens to move to state...where his business model is illegal?!?

"Dishonest scales are an abomination to the Lord,
But a just weight is His delight."
Proverbs 11:1

This is...kinda interesting.  We don't doubt Mr. Musk's sincerity in deriding state and local officials in California.  But is Elon Musk truly prepared to reward the legislators who have been keeping Tesla out of Texas for (at least) five years.

In Texas, we have something called "auto dealer franchise laws."   These protectionist measures disallow automobile sales without a middle man and a physical retail location.  This is a problem considering that Tesla's entire business model is based around direct to consumer sales.

For those who follow the Texas legislature, this was kinda a big deal in both 2015 and (especially2017.

Obviously, it's not illegal for Texas residents to own a Tesla.  There's even a few showrooms.  But all of the financial/paperwork aspects of any transaction must occur in another state.  Is Musk really prepared to overlook that?!?

Bottom Line: For as much fun a this narrative might be, there are a lot of unresolved questions before it materializes.

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