Tesla Motors, a thriving new electric car company, has received large amounts of attention and accreditation from the auto industry world as their silent high performance engines and slick exteriors have produced one of the fastest growing independent car company in the world. However, due to the modern companies controversial business plan, Texas has banned Tesla Motors from selling their Model S. cars in the state. Tesla delivered a shock to the electric car industry as the new company won engine of the year and was declared "the safest car ever" by the National Highway Traffic Safety Administration so why would Texas ban the "car of the future"? Bill Walters, the owner of a large car dealer ship in Austin Texas argues that Tesla s direct sales method, where cars are sold exclusively in Tesla stores with flat prices and no "middle men", pose an unnecessary threat to the already existing sufficient dealership methods. When asked about the successful ban of Tesla cars in the state of Texas, Tesla CEO Elon Musk, a billionaire entrepreneur, declared that the Texas's threatened response is a "perversion of democracy" as the legislative ban is not and was not popular among the people.
As a large fan of the Tesla companies product and business plan, I am extremely upset to see Texas, or any state for the matter, legislatively ban any product solemnly because it poses a superior and economical product and market strategy. Not only is the ban a cowardly attempt to stop Tesla's expansion, but an u"un-american" one as Tesla's direct sales methods create an essential competition which forces the bettering of companies in a free market economy. Apple Computers, another example of a direct sales company, has thrived due to their change of rhythm when selling computers and because of it, intensified the competition within the free market technology economy. I personally think it is a shame that Texas, under the pressure of competition, cheated itself out of an economically stimulating product during the pinnacle of a prosperous market. This story examples a contradicting "un-constitutional" legislative act that not only ignores the free market economy, but deprives people of new jobs in an industry that at this rate, wont be going anywhere.
To read more and watch news coverage on the story, click: http://news.yahoo.com/blogs/nightline-fix-abc-news/why-texas-bans-sale-tesla-cars-140842349.html
That's crazy! Not only does it deprive people of new jobs, but it also deprives the environment of cars that could be keeping it clean. I'd like to know more about why Texas would ban a company that at the moment only seems beneficial.
ReplyDeleteJust another reason I'd like to move out of state. It's truly disappointing that Texas feels so threatened that it has has to deny people such a great car. Whatta shame.
ReplyDeleteDisappointment setting in.. I wanted a tesla hah hope they repeal that later in like around 2 years
ReplyDeleteWow, this is ridiculous. It's so hypocritical of our government to cheat us out of this type of economically stimulating product. They say they are for the "good" of the people and bettering economically as a nation, but this brings us down and definitely does not help us as a nation.
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