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Regulations Could Harm Texas’ Bid for Tesla Plant

Posted on 3/18/2014 by with 0 comments

Sales restrictions placed on Tesla Motors by Texas could put the brakes on the state’s hopes of landing the company’s planned $5 billion lithium-ion battery plant.

The automaker cannot sell its electric cars directly to consumers in Texas due to state laws – among the nation’s strictest – that protect and regulate auto dealerships.

Tesla CEO Elon Musk has already said that franchise restrictions would keep his company from building a possible truck manufacturing plant in Texas and Ohio, which has enacted similar laws.

Tesla has said it would locate its wind- and solar-powered “gigafactory” that could employ about 6,500 people in Texas, Arizona, Nevada, or New Mexico.


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