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There's already a Tesla store in Houston. How did they open that store, and will they be able to keep it open? I've seen a couple Teslas driving around Dallas

There's already a Tesla store in Houston. How did they open that store, and will they be able to keep it open? I've seen a couple Teslas driving around Dallas, and am hoping to see more.

sidupadhyay 13y ago
They also have one in Austin, but the greater issue here is that the stores can't help customers as much. Specifically, in order to comply with state laws the stores can't talk about the purchasing process nor help with the registration. Tesla's site has more details on what they can and cannot do: http://www.teslamotors.com/advocacy_texas http://www.teslamotors.com/advocacy_texas
Rudism 13y ago
I remember reading some time ago that Tesla's loop-hole for opening storefronts is that they don't actually sell cars to people there... they just inform people about the cars and answer their questions. When it's time to actually buy one, they sit you down at a internet terminal and you order over the web just as you would if you were purchasing from anywhere else.
- DanBC 13y ago
  Would they have been collecting and paying sales tax?
  - masonhensley 13y ago
    I think you pay the sales tax when you register the car, just like you would during a private sale. The only difference is that when you buy a car from a dealer, they probably help fill out that paperwork. I could be wrong, I've never bought a new car & my current vehicles were both gifts from a family member which only carried a flat $10 tax. Texas auto sales tax info: http://www.window.state.tx.us/taxinfo/mtr_veh/mv_su.html http://www.window.state.tx.us/taxinfo/mtr_veh/mv_su.html
    - nrb 13y ago
      In some states, Illinois for example, the dealership can register the car on your behalf and collect tax at the time of the sale. When you leave the dealership, you already have your permanent license plate along with the registration sticker and get to skip the DMV altogether.
- jonknee 13y ago
  I don't believe Texas even allows for in-store internet sales. Last I heard Tesla couldn't even inform people in the store how much the cars cost. Tesla also cannot deliver the vehicle to the customer, the customer must provide arrangements. Oh, no test drives either. It's absolutely ridiculous. I assume they opened the store just to have a better argument against the dealership cartel. http://stateimpact.npr.org/texas/2013/04/24/tesla-has-eyes-for-texas-but-will-the-state-make-oblige/ http://stateimpact.npr.org/texas/2013/04/24/tesla-has-eyes-f...
  - gknoy 13y ago
    I wonder if they could get around the "no test drives" rule by opening a "Tesla Car Rental" chain, where you can rent a Tesla for a day. This way they are neither selling nor testing cars, but people who are interested would be able to try it out.
    - jonknee 13y ago
      Regardless of the crazy dealership laws I would love to rent a Tesla for a day.
- stephenhuey 13y ago
  Correct. They do not sell cars at the Houston Galleria store: http://www.teslamotors.com/houstongalleria http://www.teslamotors.com/houstongalleria
  - Florin_Andrei 13y ago
    So it's basically a showroom.
    - angersock 13y ago
      Right, however given the amount of oil money floating around and people coming in from out-of-town to shop there, it makes sense.
- dclowd9901 13y ago
  >they sit you down at a internet terminal and you order over the web How does this work in light of the law in Texas outlawing this?
masonhensley 13y ago
There are a surprising number of Model S's driving around uptown/ downtown Dallas. I believe the closest "dealer" is in Austin (195 miles away). Interestingly enough, there should be a supercharger between Dallas and Austin by Q4 2013. Edit: there is a service center in one of the burbs just blocks north of Dallas proper: http://www.teslamotors.com/service/dallas http://www.teslamotors.com/service/dallas
DEinspanjer 13y ago
They can show the demo car and the skateboard model (i.e. wheels and battery pack) they have in the store, and they can answer technical questions about the car, but they are not allowed to discuss prices with anyone nor are they allowed to facilitate the purchase. There are further frustrating restrictions in Texas around the service of vehicles. The Tesla service center cannot directly handle a request for service. The customer must call a department in California and make arrangements with them, then that department forwards the request to the Texas service center. This information is based on what I remember of reading various posts in the teslamotorsclub.com forums.
- rdtsc 13y ago
  However it is important for them to make a point why they are not allowed to do that. Tesla buyers are not average Joes, they are people with money. People with money have connections, often political. Annoy just a few rich people and it is like magic, the legal and lobbying wheels start spinning.
skaevola 13y ago
It's an "Educational Showroom" not a dealership. You can see the car and have questions answered about it but they can't tell you the price or actually sell you a car. You can buy a car online and they will ship it directly to your house (on a massive truck). Because it's not a dealership, you can't go there if you need repairs, instead there is a little repair truck which drives out to your house and repairs the car.

There's already a Tesla store in Houston. How did they open that store, and will they be able to keep it open? I've seen a couple Teslas driving around Dallas, and am hoping to see more.

sidupadhyay 13y ago

They also have one in Austin, but the greater issue here is that the stores can't help customers as much. Specifically, in order to comply with state laws the stores can't talk about the purchasing process nor help with the registration. Tesla's site has more details on what they can and cannot do: http://www.teslamotors.com/advocacy_texas http://www.teslamotors.com/advocacy_texas

Rudism 13y ago

I remember reading some time ago that Tesla's loop-hole for opening storefronts is that they don't actually sell cars to people there... they just inform people about the cars and answer their questions. When it's time to actually buy one, they sit you down at a internet terminal and you order over the web just as you would if you were purchasing from anywhere else.

DanBC 13y ago
Would they have been collecting and paying sales tax?
- masonhensley 13y ago
  I think you pay the sales tax when you register the car, just like you would during a private sale. The only difference is that when you buy a car from a dealer, they probably help fill out that paperwork. I could be wrong, I've never bought a new car & my current vehicles were both gifts from a family member which only carried a flat $10 tax. Texas auto sales tax info: http://www.window.state.tx.us/taxinfo/mtr_veh/mv_su.html http://www.window.state.tx.us/taxinfo/mtr_veh/mv_su.html
  - nrb 13y ago
    In some states, Illinois for example, the dealership can register the car on your behalf and collect tax at the time of the sale. When you leave the dealership, you already have your permanent license plate along with the registration sticker and get to skip the DMV altogether.
jonknee 13y ago
I don't believe Texas even allows for in-store internet sales. Last I heard Tesla couldn't even inform people in the store how much the cars cost. Tesla also cannot deliver the vehicle to the customer, the customer must provide arrangements. Oh, no test drives either. It's absolutely ridiculous. I assume they opened the store just to have a better argument against the dealership cartel. http://stateimpact.npr.org/texas/2013/04/24/tesla-has-eyes-for-texas-but-will-the-state-make-oblige/ http://stateimpact.npr.org/texas/2013/04/24/tesla-has-eyes-f...
- gknoy 13y ago
  I wonder if they could get around the "no test drives" rule by opening a "Tesla Car Rental" chain, where you can rent a Tesla for a day. This way they are neither selling nor testing cars, but people who are interested would be able to try it out.
  - jonknee 13y ago
    Regardless of the crazy dealership laws I would love to rent a Tesla for a day.
stephenhuey 13y ago
Correct. They do not sell cars at the Houston Galleria store: http://www.teslamotors.com/houstongalleria http://www.teslamotors.com/houstongalleria
- Florin_Andrei 13y ago
  So it's basically a showroom.
  - angersock 13y ago
    Right, however given the amount of oil money floating around and people coming in from out-of-town to shop there, it makes sense.
dclowd9901 13y ago
>they sit you down at a internet terminal and you order over the web How does this work in light of the law in Texas outlawing this?

masonhensley 13y ago

There are a surprising number of Model S's driving around uptown/ downtown Dallas. I believe the closest "dealer" is in Austin (195 miles away). Interestingly enough, there should be a supercharger between Dallas and Austin by Q4 2013. Edit: there is a service center in one of the burbs just blocks north of Dallas proper: http://www.teslamotors.com/service/dallas http://www.teslamotors.com/service/dallas

DEinspanjer 13y ago

They can show the demo car and the skateboard model (i.e. wheels and battery pack) they have in the store, and they can answer technical questions about the car, but they are not allowed to discuss prices with anyone nor are they allowed to facilitate the purchase. There are further frustrating restrictions in Texas around the service of vehicles. The Tesla service center cannot directly handle a request for service. The customer must call a department in California and make arrangements with them, then that department forwards the request to the Texas service center. This information is based on what I remember of reading various posts in the teslamotorsclub.com forums.

rdtsc 13y ago
However it is important for them to make a point why they are not allowed to do that. Tesla buyers are not average Joes, they are people with money. People with money have connections, often political. Annoy just a few rich people and it is like magic, the legal and lobbying wheels start spinning.

skaevola 13y ago

It's an "Educational Showroom" not a dealership. You can see the car and have questions answered about it but they can't tell you the price or actually sell you a car. You can buy a car online and they will ship it directly to your house (on a massive truck). Because it's not a dealership, you can't go there if you need repairs, instead there is a little repair truck which drives out to your house and repairs the car.