Regulations Could Harm Texas' Bid for Tesla Plant

Gov. Rick Perry, far from shy in his efforts to reel in jobs from other states — especially California — often declares Texas “wide open for business.”

But one company in the Golden State has found Texas decidedly closed: Tesla Motors, which cannot sell its upscale electric cars directly to consumers in Texas because of long-standing state laws protecting and regulating auto dealerships.

Now, those restrictions, which rank among the country’s strictest, could harm Texas’ chances of landing the $5 billion lithium-ion battery plant Tesla plans to construct by 2017

In late February, the company announced that Texas was one of ...

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