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What Does Texas Have Against the Free Market for Automobiles?

1 min. read

What is it with all these "free market" types who can't stand the disruptions caused by highly competitive, attractive clean energy alternatives?  To North Carolina's anti-free market policies, it looks like we can now add Texas.

Texas' state legislature failed to vote on a bill backed by Musk's Tesla Motors that would have loosened the state's restriction on dealerships owned by automakers. The legislature concluded its most recent session last week, and won't be back until January 2015.

Tesla has tangled with dealership associations in a number of states in its effort to sell its Model S electric sedan directly to consumers rather than using franchised car dealers...


Auto sales are mostly regulated at the state level. In some states, Tesla has had little or no problem opening its stores. In other places, like Texas, auto dealers and their allies in government have resisted Tesla's plans, fearing they could ultimately undermine the system of franchised auto dealers.

This is, in other words, yet another example of how powerful, well-connected, incumbent industries fight to maintain their positions and to prevent any newcomers from potentially displacing them. Fortunately, they're not always successful.