The Texas EV rebate will not apply due to Tesla’s direct sales model

Despite the automaker relocating its headquarters to the state, Tesla has been excluded from the concessions it offers to electric car buyers.

Texas recently released a list of its electric and electrified vehicles that are eligible for a light-duty motor vehicle purchase or lease program that offers a ছাড় 2,500 discount and includes 142 different models, not a Tesla.

The reason for the snub is that Tesla lacks a dealership network. Instead of a traditional sales model, the electric car brand prefers to sell its vehicles directly to customers, but this makes it ineligible under the Texas law.

The rebate program is run by the Texas Commission on Environmental Quality, and Laura Lope, media and community relations manager, says state franchise dealer law requires eligible vehicles to be purchased from a state dealer.

“The program currently requires that qualified vehicles be purchased or leased from a new Texas licensed new car dealer or leasing company. Under Texas law, vehicles purchased directly from a manufacturer that does not have a license to sell or lease new vehicles in Texas or dealers outside the state are not eligible for the discount, ”Lopez told The Center Square.

Read more: Updated Cybertrack Promises 2023 Launch and New Robotaxi at Tesla Cyber ​​Radio

Tesla recently opened its Giga factory in Austin where it will manufacture the Cybertrack as well as the Model Y. However, the brand does not allow any vehicles manufactured there to be sold directly to Texans; Instead, they must first be sent out of state to be repatriated.

The brand has made multiple attempts to change the law, most recently with House Bill 4379 in 2021, but that bill failed and lawmakers will not see each other again until 2023.

While the hurdles are certainly annoying, it doesn’t seem to have hurt Tesla’s sales too much, especially according to Carla Bylo, president and CEO of the Michigan Automotive Research Center, many people don’t like starting car dealerships.

“It certainly hasn’t slowed down Tesla sales – they’re still selling all these places they don’t have dealerships – and many more companies are starting to go that route because consumers like it,” he said. “[Dealership laws] Defending something that could go a long way in any case. Dealers, unfortunately, have not always been a pleasant experience for many people. “

The absence of Tesla dealerships may be a relief to buyers at this time, though, as almost every car in high demand is getting crazy markup. Instead of getting a discount from the government, Tesla buyers are happy to get a very popular car without the ridiculous markup for special benefits.

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