Does the Delivery Situation in Texas Affect Country-wide Delivery?

[alan auerbach]

If I understand correctly, the trucks will have to be shipped past state lines before being shipped to buyers in Texas. So maybe all the states next to Texas now have the best chance of getting them first. This whole situation
is ridiculous.

FROM THE NEW YORK TIMES:

As in some other states, Texas has long had laws to protect car dealers by barring automakers, including Tesla, from selling directly to consumers. California, the company’s biggest market by far, has long allowed the company to sell cars directly to buyers, which lets it earn more money than if it had to sell through dealers.

Tesla has showrooms around Texas, but employees are not even allowed to discuss prices with prospective buyers and the showrooms cannot accept orders. Texans can buy Teslas online and pick the vehicles up at its service centers.

Once the Austin factory starts producing vehicles, including a new pickup truck Tesla calls Cybertruck, those vehicles will have to leave the state before they can be delivered to customers in Texas.

Sponsored

 

[rr6013]

There’s no solution on the table for D2C TX auto sales or we’d have heard about it.

Without Reciprocity TX losses revenue with every Tesla transferred in from out of state.

Worst case TX changes this, taxing vehicles at Registration.

Best case Tesla negotiates with TX auto dealer lobby a win-win-win scenario. Tesla has a bag full of products to play with TEXAS, a SpaceX spaceport and now a new HQ in Austin.

Dealers are interesting and could clawback Tesla certification for used Teslas sold by dealers, dealer cross-training into certified Tesla techs and even Teslas sold via online in TX could somehow accrue access to these buyers through a Tesla program for a menu of TX services after sale. I can see accessories and solar charging as two opportunities for dealers - if they so choose.

 

[Jhodgesatmb]

Tesla will use the reservation number as their primary ordering mechanism within the constraints of deliveries to regions. So if they send a delivery vehicle to your city and there are 50 trucks on the delivery vehicle and your reservation number is up then you will probably get the notification. There may be other factors but those I suspect would be the top ones.

 

[mhaze]

only 3 miles from Boca Chica to Mexico, and closest border to Austin... just sayin.....

No worry! Real reason for the Boring Company is solution.

 

[cvalue13]

The law situation seems dumb.

though, I’m not sure why folks are treating a 3hr turnaround drive (6 total) as ruling out early TX deliveries. The trucks could get to OK border back to Austin in less time than it takes to get from Austin to any major metropolitan area in OK, AR, or LA. They could meanwhile get to OK border back to Dallas in … 30mins?… more than it takes to drive strait to Dallas.

Or does the law require more than simply crossing state lines?

 

[Jhodgesatmb]

Seeing this post makes me think that all this has been hashed out before, many times. It must be a year-end summary (in no particular order):

1. Tesla will still use reservation line position to satisfy orders, with caveats
2. Tesla ships vehicles in groups so that will override reservation number to some degree
3. Tesla cannot sell vehicles in Texas but they can deliver vehicles in Texas
4. Elon has said in the past that we can pick up our trucks at Giga Austin
5. We have seen that Tesla is now using rail to ship vehicles from Giga Austin
6. Tesla has been satisfying Model Y orders to workers, families, locals, and celebrities before the reservation list and will likely do the same with the CT
7. Tesla tends to deliver to areas with large BEV concentrations and urban areas earlier because they can ship large numbers of vehicles there. The CT might change this but no one knows
8. In the past Tesla has shown some preference in delivery to households with other Teslas but it is not clear whether this will happen with the CT

I do not know if the Texas law prohibiting direct sales is stupid but it isn't the only state and I suspect that they have a historical approach that is difficult to unwind.

 

[Crissa]

The law situation seems dumb.

though, I’m not sure why folks are treating a 3hr turnaround drive (6 total) as ruling out early TX deliveries. The trucks could get to OK border back to Austin in less time than it takes to get from Austin to any major metropolitan area in OK, AR, or LA. They could meanwhile get to OK border back to Dallas in … 30mins?… more than it takes to drive strait to Dallas.

Or does the law require more than simply crossing state lines?

They don't have to take the cars to the border, and it doesn't cover selling them to people out of state.

It's not like other states which ban the delivery of cars. Just the selling. So Texans have to go through the 'import' process of bringing in an out of state car, but they totally get to pick it up in state.

-Crissa

 

[KHappe]

They don't have to take the cars to the border, and it doesn't cover selling them to people out of state.

It's not like other states which ban the delivery of cars. Just the selling. So Texans have to go through the 'import' process of bringing in an out of state car, but they totally get to pick it up in state.

-Crissa

Few minor things.

• You have pay for the vehicle before pickup.
  • At a dealer, you can pay for the vehicle as you get it.
• They don't collect any taxes or provide plates etc.
  • Have to go to a local county office to pay taxes and get plates.

 

[hridge2020]

What are they smokin'

 

[Crissa]

Texas doesn't care where the car is delivered, just where the money is transferred.

-Crissa

 

[cvalue13]

It's not like other states which ban the delivery of cars. Just the selling. So Texans have to go through the 'import' process of bringing in an out of state car, but they totally get to pick it up in state.

So, we Texans merely purchase online, take delivery at nearest convenience, but are left to obtain our own tags/registration?

The latter part may be a bit annoying, but otherwise I see no impediments to Tesla delivering CTs disproportionately to folks in central TX due to proximity - we’ve already ordered online, have convenient delivery possibilities, and Tesla couldn’t care less about the buyer’s tags/registration woes?

Nothingburger?

 

[Crissa]

So, we Texans merely purchase online, take delivery at nearest convenience, but are left to obtain our own tags/registration?

The latter part may be a bit annoying, but otherwise I see no impediments to Tesla delivering CTs disproportionately to folks in central TX due to proximity - we’ve already ordered online, have convenient delivery possibilities, and Tesla couldn’t care less about the buyer’s tags/registration woes?

Nothingburger?

You have to pay different/higher taxes and fees on the purchase, and more time is involved in getting it licensed.

Texas is great at making things cost more than it seems at first glance.

-Crissa

 

[Jimbo Ringo]

Yep, pretty stupid to have absurd laws that impact a company spending $billions in your state and employing thousands of people. We are usually very business friendly which has contributed tremendously to our economy and property values aver the last 5-10 years. It is disappointing to hear we are not being business friendly in this case, for no logical reason.

The “reason” is Texas car dealers in the Texas Legislature taking care of their business.

 

[Jhodgesatmb]

The “reason” is Texas car dealers in the Texas Legislature taking care of their business.

Whoever said that politics is logical? If you want a change then get vocal about it and get 100K of your best friends to do the same.

 

[jcryer3]

Texas is one of the largest markets for Teslas. I have bought two. You to pay in full, and it comes with a California title. You have to take care of the transfer, tax and plates yourself. Tesla is hands off. I do not see why they have to ship it out of State when it has an “out of State” title. They could open a dealer on a Texas Indian Reservation, and everyone could pick up their Cybertruck there. It is amazing to me that this stupidity still exists.

Sponsored