Pub. 55 2014-2015 Issue 3

15 SPRING 2015 every day in our state. • When the manufacturer of a product controls all of the retail outlets, that is a monopoly. When there are outlets with different owners, that creates competition. Franchised new car and truck dealerships in Texas are represented by almost one thousand owners. That is the ultimate competi- tive environment which is good for Texas, its communities and for Texans. • When Texas dealers thrive, Texas benefits with added jobs, capital investment, tax revenue, and charitable giving. When Texas family owned dealerships make money, those profits stay right here in Texas. • Tesla promises if they obtain an exception to Texas law, they will hire employees and invest in outlets. If they complied with state law, franchised dealers would do the same thing for Tesla and Texas, likely at an even higher level. Under current Texas law, Tesla could have as many dealerships as they want, each with a different owner competing with each other on price and service for Texas consumers. If Tesla established dealerships under the current law, the consumer would benefit from dealership competition and our state would benefit because any profit that those franchised Tesla dealerships would make stays in Texas. Dealers work under the guidelines of manufacturers every day and would do the same with Tesla. Tesla could establish their preferred business model with anyone as their dealer. • An exception to Texas law is all about Tesla eliminating their competition, selling for list price, and keeping all of the money, leaving nothing for Texas. • In conclusion, there is no reason to change a law that creates a free market whereby 1,257 franchised dealerships compete for the customers’ business every day while creating 2,000 new well-paying jobs and $1 billion in capital investment every year with no taxpayer subsidy, which best serves Texas and Texans. TADA Closing Remarks • Nothing inTexas’ current franchise system is broken. It pro- vides the lowest price to the consumer and the highest level of service, with family owned dealerships throughout the state to perform warranty repairs and safety recalls. Fran- chised dealers are selling more and more electric vehicles. With the franchised dealer network, Texas and Texans win. • There is no compelling reason to change a law that best serves Texas. There are people driving Teslas in Texas today, and there would be even more people driving Teslas if the company would comply with Texas law. • Current Texas law supports a competitive dealer network that partners with Texas to provide jobs, investment in Texas, significant tax revenue and essential volunteer com- munity service. All done without a government handout or taxpayer subsidies. • Texas has always led the way with free market competition provided by a large network of primarily family-owned dealerships competing to give Texans the best price, the highest level of service and the maximum safety on the road. All the while serving as an essential economic engine for the state, and providing community support and volunteer service in 284 Texas towns.  TCCRI — CONTINUED ON PAGE 16 If Tesla established dealerships under the current law, the consumer would benefit from dealership competition and our state would benefit because any profit that those franchised Tesla dealerships would make stays in Texas.