The US purports to be home of the free market. But we all know it’s not. Rather, it is home to vested and entrenched interests who will fight tooth-and-nail to maintain the status quo beneath the veil of self-written regulations and laws. This is called protectionism — manufacturers, media companies, airlines and suppliers all do it. Texas car dealers and their corporate lobbyists are masters at this game.
From ars technica:
In a turn of events that isn’t terribly surprising, a bill to allow Tesla Motors to sell cars directly to consumers in Texas has failed to make it to the floor, with various state representatives offering excuses about not wanting to “piss off all the auto dealers.”
The Lone Star State’s notoriously anti-Tesla stance—one of the strongest in the nation—is in many ways the direct legacy of powerful lawmaker-turned-lobbyist Gene Fondren, who spent much of his life ensuring that the Texas Automobile Dealers Association’s wishes were railroaded through the Texas legislature.
That legacy is alive and well, with Texas lawmakers refusing to pass bills in 2013 and again in 2015 to allow Tesla to sell to consumers. Per the state’s franchise laws, auto manufacturers like Tesla are only allowed to sell cars to independent third-party dealers. These laws were originally intended to protect consumers against the possibility of automakers colluding on pricing; today, though, they function as protectionist shields for the entrenched political interests of car dealers and their powerful state- and nationwide lobbyist organizations.
The anti-Tesla sentiment didn’t stop Texas from attempting to snag the contracts for Tesla Motors’ upcoming “Gigafactory,” the multibillion dollar battery factory that Tesla Motors CEO Elon Musk eventually chose to build in Reno, Nevada.
Speaking of Elon Musk—in a stunning display of total ignorance, Texas state representative Senfronia Thompson (a Democrat representing House District 141) had this to say about the bill’s failure: “I can appreciate Tesla wanting to sell cars, but I think it would have been wiser if Mr. Tesla had sat down with the car dealers first.”
Apparently being even minimally familiar with the matters one legislates isn’t a requirement to serve in the Texas legislature. However, Thompson did receive many thousands in campaign contributions from the Texas Automobile Dealers Association, so perhaps she’s just doing what she’s told.
Read the entire story here.