Wednesday, March 19, 2014

"Regulations Could Harm Texas' Bid for Tesla Plant" by Jim Malewitz


Author Jim Malewitz of the Texas Tribune, who has an undergraduate degree from Grinnell College in Iowa as well as a master’s degree from the University of Iowa describes how strict Texas laws are harming Tesla's (electric car manufacturer) sales. Malewitz's intended audience is Texas citizens interested in the development of electric car companies. Texas has a reputaion for its relatively minimal amounts of government regulations on businesses. However, officials from Tesla argue that restrictions that prevent car manufacturers to sell directly to customers is stunting their company's ability to expand. You can go check out their vehicles in Austin and Houston, but can't discuss anything about the price, purchase or delivery of the vehicles. Also, you must order the car from Tesla’s headquarters in Palo Alto, California. The company hopes to open a lithium battery plant here in Texas in 2017 that would cost 5 billion dollars and would create 6,500 jobs. This legal issue that was described by Tesla as "incredibly inconvenient" will be a stumbling block for achieving said goal. I agree with Malewitz that the way the auto industry is set up puts electric car companies at a disadvantage. Jim Malewitz conveyed his message by quoting Tesla officials and well known politicians like Rick Perry. This article brings to mind the government destruction of an earlier up and coming electric car company that was quickly gaining popularity.