Tesla loses fight to set up its own dealers in Texas

Tue, 04 Jun 2013

For a while there, it seemed like Tesla could do no wrong. But despite repaying its Department of Energy loans early, surging stock prices and even announcing a vast network of proposed Superchargers, Tesla is still in the fight of its life for how to get its cars sold.

According to Automotive News, the startup EV-maker lost its second straight battle to sell cars in dealerships that don't conform to state franchise laws restricting factory-owned dealerships. Earlier in the year, Tesla failed to get a dealer license in Virginia, and this time around, it will have to wait until at least 2015 to fight for an exemption in Texas. This means that Tesla's Houston and Austin showrooms are not actually allowed to sell vehicles. The report also adds that Tesla CEO Elon Musk could end up taking his case to the federal courts.

By Jeffrey N. Ross