Gift Icon
Get a 20% discount from our partners! Discount code will get added automatically when you submit the form.
Auto Transport Truck on Highway
4.7 Star Rating4.7 (67,926 reviews)
96.3% positive
No Surprises, Just Savings: Verified Carriers, Instant Quotes, and Best Price Guarantee!
You save 20% compared to other companies
Get quotes from trusted carriers, thoroughly vetted and fully insured. Enjoy trackable deliveries, fair pricing, and hassle-free transport from start to finish. Transport any type of vehicle and drive away worry-free.
Customer Images
7790 people shipped using A-1 Auto Transport last week
Scratch-Free Guarantee
Vetted Carriers
Transparent Costs
Customer Ratings By Feature
Value for Money ★★★★★ 4.9
Vehicle Care ★★★★★ 4.9
Fast Delivery ★★★★★ 4.9
Friendly Staff ★★★★★ 4.9
Globe
190+
Countries
Served
Car
2M+
Delivered
Services
Car
97%
Customer
Recommended
Dave loved the fast deliveryDave C.
★★★★★
Dave loved the fast delivery
My relocation to Chicago was fast, smooth and without any delay thanks to A1 Auto.
Courtney enjoyed the honest guidanceCourtney J.
★★★★★
Courtney enjoyed the honest guidance
Just what you need when trusting someone with your wheels! Kudos to this company!
Jeff enjoyed the fair priceJeff D.
★★★★★
Jeff enjoyed the fair price
Moved my ride hassle-free with these folks.Fair pricing, no surprises. Definitely recommend them!
Maria enjoyed the special care and safetyMaria L.
★★★★★
Maria enjoyed the special care and safety
Huge thanks to the movers – they were meticulous with my car. Love these guys.
Recently featured on USA Today

“A1 Auto Transport became synonymous with top-notch service delivery, unfailing punctuality and constantly preoccupied with customer satisfaction.

See Article— USA Today

Why Doesn’t Tesla Sell Cars in Texas

Published by Tamar Hela.

Why Doesn’t Tesla Sell Cars in Texas

Texas is known for country music, BBQ, and ranches. But there's one thing Texas doesn't have - Tesla car dealerships or service centers. Nearly 30 million people call the state of Texas their home, so aren't they able to buy a Tesla there?

From lawsuits to dealership laws and even a contested Supreme Court case, the cause is a little more complex than you may first think.

Understanding why Tesla is unavailable in Texas is crucial as it offers insights into the complex US auto industry.

Keep reading to discover why Tesla makes cars in Texas but can't sell them there.

tesla1.jpg

Tesla's Business Model

Tesla operates differently from other car makers. Tesla builds its vehicles and sells them directly to customers, as opposed to traditional automakers that produce their vehicles and then sell them to dealerships.

Therefore, it owns and manages every one of its retail outlets and service facilities.

The direct-to-consumer business model allows Tesla to control the sale and services of all of its vehicles.

This process differs from traditional franchised dealerships, independently owned and operated by third-party businesses.

This model has been met with pushback from the auto industry and saw Tesla Motors involved in a number of legislative and legal battles over the past few years due to proposed and existing state laws.

These laws aim to impede the company's innovative factory-direct sales and service model, but the electric vehicle company has overcome most cases in most states, except Texas.

Texan lawmakers fear that allowing Tesla to sell directly to consumers creates an unfair advantage over traditional dealerships, ultimately leading to job losses.

Pinned
New Deals are now available for shipping all types vehicles using our vetted reliable shippers. Compare price estimates & Unlock up 25% off.

Texas Franchise Law

The Texas Franchise Law prohibits Tesla from selling its cars directly to consumers as it requires all auto dealers to sell their cars through franchise or third-party dealers.

This means the dealership acts as a middleman between auto manufacturers and consumers.

This law is in place to protect the current auto dealers and ensure they remain competitive in the market. Traditional auto dealerships have lobbied governments to create a favorable environment for them to operate.

The law also prevents manufacturers like Tesla from undercutting prices, allowing dealerships to remain profitable.

Tesla handles its pricing, and the law also prevents manufacturers like Tesla from offering any vehicle warranty or service plan unless the repairs and services are carried out at an independent garage.

Tesla would have to partner with auto dealers to offer these services to comply with these laws. The company actively avoids doing this as adding dealerships to the process will either drive up prices or eat into their profits.

Tesla's Lawsuits and Legislative Challenges

In response to the Franchised dealer Laws, Tesla filed a lawsuit against the Texas Motor Vehicle Board, claiming that such a law is unconstitutional.

The issue wound up on the Supreme Court's doorstep, but the decision favored the Texas Motor Vehicle Board.

Both sides appealed the decision and eventually settled, with Tesla being allowed to operate showrooms and service centers across Texas but not sell vehicles directly.

Apple Stores inspire the layout and design of these new establishments. Inside, employees will offer test drives but won't be able to answer pricing questions or provide any other services one would expect from a conventional car lot.

Tesla seems determined to sell vehicles directly in Texas. The business is appealing to a federal court to overturn the Texas Department of Motor Vehicles' restriction on direct-to-consumer sales.

These legal battles have been dubbed 'The Tesla Wars.'

tesla-2.jpg

The Impact of the Tesla Wars

Since 2013, the Tesla Wars have impacted considerably the market for electric vehicles in Texas.

Texans can still not buy Elon Musk's Teslas directly, and the draconian laws have created a barrier to entry for other electric vehicle manufacturers into the Texas market.

This means that Texans have fewer choices when purchasing an electric car and are limited to whatever models the traditional dealerships carry.

The lack of competition also drives up prices, making battery-electric vehicles less accessible to consumers.

In a bid to court the Texas state, Tesla moved its headquarters to Austin in 2020. It is still too early to tell if this will make a big difference in the long-standing ban on direct sales, but it is a positive step that could one day let people in Texas buy the cars they want.

The multibillion-dollar building, called the "Gigafactory Texas," has helped create thousands of jobs, and Tesla's presence in the state has the potential to boost economic growth in a big way.

Ultimately, the Tesla Wars have created a unique set of rules for Texas that other states do not have to follow. Until they are resolved, Texas residents who want a Tesla cannot purchase one in their home state.

Why Is Tesla Against Franchise Dealers?

Tesla has refused to employ the dealership model and favors direct sales to consumers. This approach has several advantages that explain why Tesla has opted out of granting any dealerships franchises.

The first is that traditional dealers make an immense amount of money from regular services, such as oil changes and transmission maintenance, creating a conflict of interest when selling electric cars like Tesla's fleet that don't require these services.

Furthermore, dealers are motivated to remain profitable by setting high car prices and decreasing demand to keep costs low and stay profitable, leaving only a small margin for profit on electric cars.

Tesla has also identified the struggle between most franchised dealers' businesses being gasoline cars on one end while trying to promote and distribute new EV technology on the other.

As such, they can circumvent this questionable arrangement by implementing their direct sales technique, which eliminates any conflicts of interest or manipulation tactics designed to maximize profits at the expense of customer satisfaction.

Tesla can cut out intermediaries, minimize customer prices, and focus on providing top-notch customer service quality in an all-in-one swoop through their direct sales strategy.

How to Get a Tesla in Texas

Even though some states exclusively comply with the dealer franchise law and are not allowing Tesla to sell cars directly, it is still possible for an individual to get their hands on Texas-made Teslas.

This process is a loophole where a person could order the car online from Tesla's website and have all the paperwork signed.

After that, those documents will be shipped to a nearby state allowing direct vehicle sales.

The buyer may then pay for the vehicle and ship it to one of the servicing facilities in their home state.

This has led to quite a dilemma as individuals living in states like Texas still have to go through that lengthy process even though the cars are produced in the state.

This is the only way until Tesla officials reach a compromise in a legislative session with lobbyists so that people residing within those states may purchase their cars directly without having any further problems.

tesla-3.jpg

Which Electric Vehicles Are Available in Texas?

Although Tesla can't yet sell cars directly in Texas, electric vehicle (EV) options are still available for the environmentally conscious car buyer.

Here are a few other electric vehicles currently available in Texas:

  • Nissan Leaf
  • Chevrolet Bolt EV
  • Hyundai Ioniq Electric

Key Takeaways

Texas laws may prevent Tesla from offering direct sales of its vehicles, but this may change as the electric car manufacturer establishes a more substantial presence in the state and petitions lawmakers to change the rules.

Until then, if you're a Texan and want a Tesla, you still have options like ordering online or visiting another state. Who knows? Maybe one day, you'll be able to buy your new Tesla car from a local dealership!

In A-1 Auto Transport's hands, transporting your prized car is a breeze.

Please browse our website to see our services and what past customers say about their experiences. Get a no-obligation, free quote today.

Share this content on social media for a chance to get up to 20% off your next shipment.
Copy link

Tamar Hela is one of our featured writers at A-1 Auto Transport, researching everything from AI auto shipments out of China to what paperwork is required to move long distance. We can safely say she's become well versed in all things shipping and logistics while making the information easy to digest and understandable. 

Tamar has been a copywriter for over 16 years and was trained in the 7-Figure Copywriting Accelerator course through American Writers & Artists, Inc. (AWAI). She's also an incredibly seasoned copyeditor, having previously been the Chief Editor and Publishing Director for Cosby Media Productions, based in Atlanta, Georgia. 

Email Me


Testimonial
Mylene Rutllant
It’s my number one pick in auto shipping to this day.
★★★★★

...my choice in terms of auto transport has to be A1 Auto Transport. It’s in the name, but also in the quality with which they do their jobs. I’ve never had a problem with this company.

Testimonial
Luis Rodriguez
You have my full support and recommendation!
★★★★★

A1 Auto Transport... From the get go, they were very different from my past options. Their website was very professional and up to date, full of useful information. I requested a quote using their online form, and I got an email response within an hour. Surprisingly fast!

Testimonial by Cristine Benoit
Cristine Benoit
I can safely say this is a legit company that will get the job done.
★★★★★

There are a lot of options for auto transport these days, which surprisingly makes it harder to find a good company. I received more than 10 offers to ship my car, but I couldn’t decide on any of them... Fortunately, I made the right choice with A1 Auto Transport.

Testimonial
David Osallo
We give A1 Auto Transport a big 10 out of 10!
★★★★★

We give A1 Auto Transport a big 10 out of 10! We chose them to move our car from California to Vermont, since we needed professionals.

Visit our social, and see what our clients are saying about us:

Ship Your Vehicle With A-1 Auto Today
Customer Images
7790 people shipped using A-1 Auto Transport last week
Scratch-Free Guarantee
Vetted Carriers
Transparent Costs

Our Partners:

Better Business Bureau Accredited
FMCSA Member
INC. 500 Member
VeriSign Secured
AMSA Member

A-1 Auto Transport is a disclosed agent for the following shipping companies:

CSI Logistics
435 Division Street
Elizabeth, NJ 07201
FMC 22206
Intl Cargo
45 Campus Drive
Edison, NJ 08837
NO. 17858N
Trans Global Auto Logistics, Inc.
3401 E Randol Mill Rd,
Arlington, TX 76011
NO. 018191NF
CFR Rinkens
15501 Texaco Avenue
Paramount, CA 90723
NO. 013055NF
ABC Worldwide LLC
2840 NW 2nd Ave #105
Boca Raton, FL 33431
NO. 025472F
ShipYourCarNow LLC
1160 South Rogers Circle Suite 1
Boca Raton, FL 33487
NO. 025646
Merco Air & Ocean Cargo, Inc.
6 Fir Way
Cooper City, FL 33026
NO. 021869F
Copyright © 1988-2024, A-1 Auto Transport - All Rights Reserved.