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Tesla direct sales under threat from dealer-backed bills in Florida

(Credit: Tesla)

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Tesla and other companies selling vehicles directly to consumers are under threat in Florida, where two bills may disrupt how the automakers sell their vehicles.

Tesla has become intimately familiar with the laws surrounding dealerships and auto sales throughout the United States, often putting the American upstart at odds with local government and dealerships alike. Now, Tesla is again facing threats from legislatures as two new bills could derail the company’s sales system in Florida.

Currently, there are no restrictions on direct-to-consumer sales in Florida. According to the National Conference of State Legislatures, Florida Statute 320.645, “manufacturers may engage in direct-sales of motor vehicles provided there are no franchised dealerships selling such vehicles within the state.”

However, this could change.

As initially reported by Seeking Rents, Florida House Bill 637, sponsored by Rep. Jason Shoaf, and Florida Senate Bill 712, sponsored by Sen. Bryan Avila, are set to prohibit automakers from selling vehicles direct to consumer, preventing automakers from reserving vehicles for customers, and restricting automakers from incentivizing or forcing dealers to sell certain types of vehicles, including EVs.

Neither Bill has made its way to voting, and both have received substantial amounts of editing thus far, but as it stands, the current abstracts for the bills are listed below:

HB637: “Prohibits manufacturer, distributor, or importer from certain actions in allocation or distribution to franchised motor vehicle dealers; authorizes sale or activation of accessories or features through remote electronic transmission; revises provisions prohibiting manufacturer, distributor, or importer from owning, operating, or controlling motor vehicle dealership; authorizes application for injunction; authorizes motor vehicle dealer association to seek declaration & adjudication of rights with respect to certain violations.”

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SB712: “Motor Vehicle Sales; Prohibiting applicants and licensees from reserving a certain motor vehicle for a specifically named person; prohibiting applicants and licensees from requiring or incentivizing motor vehicle dealers to sell or lease particular motor vehicles to specifically named persons or at specific prices or profit margins; prohibiting applicants and licensees from engaging in certain activities of motor vehicle dealers; authorizing specified entities without independent franchised dealers in this state to own, operate, or control a motor vehicle dealership in this state, etc.”

According to the lobbyists listed in association with the Bill on the Florida State Legislature website, both bills have received sizable backing from dealers and dealership groups, including the AutoNation dealership chain, the Florida Association of Automotive Dealers, and the South Florida Association of Automotive Dealers.

Neither state representative was immediately available for comment to Teslarati on the upcoming bills.

It is essential to recognize that Tesla would not be the only automaker affected by these bills. As seen in the second section of SB712, the Bill would prohibit “applicants and licensees” from requiring or incentivizing the sales of electric vehicles, which is precisely what brands like Ford, Hyundai, and General Motors have been doing nationally.

Furthermore, the Bill would prohibit automakers from intervening in the pricing of their vehicles, allowing dealers to dramatically mark up vehicles, a problem that has plagued numerous legacy automakers.

Considering how early in the lifecycle of both these bills are, there is a good chance they look very different by the time they reach the voting stage. However, with both of these bills up for voting in the coming weeks or months, there is no doubt that Tesla may face new legal pressure in the State of Florida if it hopes to continue to sell directly to customers.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

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Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Energy

Tesla launches Powerwall Lease for affordable home backup

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Credit: Tesla

Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.

Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.

This credit lowers the effective cost to roughly $35 per month plus applicable tax.

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Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.

The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.

Tesla announces 100k Powerwalls are participating in Virtual Power Plants

Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.

Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.

The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.

Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.

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News

Elon Musk teases Tesla Roadster unveiling once again

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tesla roadster
Credit: Tesla

Elon Musk continues to tease the unveiling event for the Tesla Roadster, a continuing trend that has grown into a bigger game of “When” for fans who have been waiting years for the car to finally enter production.

A video shared on X of the Joe Rogan Experience podcast that Musk appeared on last year, teasing the Roadster unveiling, was shared once again on the social media platform. The poster said the Roadster event will be “unforgettable.”

Musk agreed:

The timing is interesting because just yesterday, Musk said that we will be getting flying cars, and for years, Tesla has hinted that it could develop a SpaceX cold gas thruster package that would help the car float or fly for a short period of time.

It would be reasonable to assume Tesla’s major delays with this unveiling event are likely caused by the company’s need to break the rules and push the envelope on nearly everything. Last July, Lars Moravy, Tesla’s VP of Vehicle Engineering, said:

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“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind blowing. We showed Elon some cool demos last week of the tech we’ve been working on and he got a little excited.”

The latest updates that Tesla has given us are that the Roadster is in design development, and it did have several potential dates for an unveiling event this year, including April. It was then pushed to August.

However, there are no clues as to when Tesla will be ready, and fans are certainly getting frustrated with the delays.

For what it is worth, Franz von Holzhausen told Jay Leno this week that the event would be “very soon.”

We sure hope.

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Lifestyle

Tesla’s driverless Cybercab just passed a big test with State Governor

Florida’s governor rode Tesla’s Cybercab at a closed test track and called the experience impressive.

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Florida Governor Ron DeSantis rode in a Tesla Cybercab on a closed test track this week and came away impressed, posting on X that the vehicle “successfully navigated all hazards — a kid running into the street, a crash with police stopping traffic, a Model S cutting us off, etc.” He called the ride “impressive.”

The stop was part of a broader event Monday at SunTrax, a 775 acre state owned proving ground in Auburndale that Florida built specifically to test autonomous and connected vehicles before they reach public roads. Standing next to a gold Cybercab, DeSantis described the car in plain terms: “You go in there and you just sit. You have a screen. There’s no steering wheel, no pedals. Clearly these things could be very beneficial.”

DeSantis paired the praise with a caveat that has followed autonomous vehicles since the category existed. “You don’t want to be in an autonomous vehicle and it drives you into a ditch. That would not be good,” he said, framing safety validation as the gate before wider deployment.

SunTrax, the 2.25 mile oval which the state calls the only high speed autonomous vehicle test track in the Southeast, can simulate rain, pedestrian crossings, hills and crowded urban conditions at highway speeds, letting companies push a car past what an early public rollout would risk. Tesla, Waymo and Beep all use the facility, and Florida’s regulatory approach, among the most permissive for autonomous vehicles in the country, doesn’t require a human operator inside a fully autonomous car.

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Tesla has reason to want the blessing of Florida and states beyond, as the Cybercab entered volume production at Gigafactory Texas this spring and has since self certified as SAE Level 4 under Texas law. Public road testing so far has kept a safety monitor in the passenger seat, and Florida is where Tesla has been expanding its existing Model Y based Robotaxi service instead, adding Miami in July and then Orlando and Tampa two weeks later. A closed track endorsement from a sitting governor doesn’t change any of that, but it does put Tesla’s newest hardware in front of a state that has already shown it will move fast on rules.

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