Wheels with Ed Wallace Spins Prohibiting In-State Texas Tesla Sales as Consumer Protection
2021 October 11

The October 9, 2021 edition of the Wheels with Ed Wallace show featured a repeat of the false narrative that consumer protection is the reason that Texas law prohibits car manufacturers from owning their dealerships.  As covered previously by Outside Automotive, another automotive show radio host explains that that Texas law exists to protect dealerships.  In fact, radio host, Jerry Reynolds, was part of the lobbyist group who got that anti-consumer, protectionist law passed.

Wallace detests auto manufacturers like Tesla that solely sell directly to consumers.  It eliminates the profit for his sponsoring dealers, therefore blocking any advertising dollars flowing into Wallace's pocket.  So, anytime someone questions the Texas prohibition, Wallace pounces.  In this case, Wallace took issue with the Houston Chronicle Ariana Garcia story about Tesla moving its headquarters to Texas despite not being to sell cars locally in Texas.  ♫ Wallace complains that the title states that one cannot buy a Tesla, while he sees plenty of Tesla vehicles on the Texas road.  Of course, this is another lie by omission, as Wallace skips past the subtitle which clearly states that the prohibition is on local purchases.

Tesla HQ Moving to Texas Tesla HQ Moving to Texas

Later in the show, ♫ Wallace admits that the Houston Chronicle’s article title is correct “to a degree", while pushing the false narrative that the law exists to protect consumers.  Jerry Reynolds, who helped create that law, states clearly that the law was to protect dealerships.  Furthermore, the Texas prohibition on direct sales by auto manufacturers costs the consumer in several ways.  As reported by the public radio show Texas Standard, the lack of in-state dealers caused many Texans who purchased Tesla vehicles to not have received the state's $2,500 incentive for electric cars.  As such, Texas Tesla consumers must follow the more expensive and lengthy process for car purchases made from out-of-state dealers.   Willfully ignoring the unnecessary costs and hurdles imposed by the prohibition on local car manufacturer direct sales, Wallace preaches that the law helps the consumer.  To paraphrase the great President Ronald Reagan:  The most terrifying words in the English language are: “I'm Ed Wallace and I'm here to help.”

As for ♫ Wallace’s assertion that car dealers "couldn’t care less" about Tesla selling cars direct, nothing could be further from the truth.  The Texas Automobile Dealers Association fights every legislative attempt to change the law to allow auto manufacturers such as Tesla to sell directly in Texas.  In 2019, the Texas Automobile Dealers Association went further and backed legislation that would have prevented Tesla from operating its existing in-state service centers.  Texas car dealers might not sue, but they repeatedly lobby [bribe] legislators to pass laws that block their competition.  So, the dealerships actions prove that they care.  And behold, another false narrative from Ed Wallace.

Ed Wallace: No Tesla for you. Ed Wallace: No Tesla for you.

This was not the first time, and it wont be the last time, when Wallace promotes the false narrative that the car manufacturer direct sales prohibition is about consumer protection.  So when ♫ Wallace talks of reporters who have destroyed their credibility, Ed Wallace himself is a premier example of such a person with his lie about why the law exists, his lie that the current Tesla purchase process in Texas is illegal, and his lie that existing Texas dealerships care not about Tesla sales in Texas.