--- description: A law to allow Tesla to make sales in Texas didn't manage to pass, a big blow for the company. title: Tesla Was Just Dealt Another Huge Blow image: https://static.time.com/v3/assets/bltea6093859af6183b/blt14a04af03a78d2d3/69884d120b72e33a5f6e3b5c/471774088.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  * [Business](/section/business/) ## Business Update your preferences in [Account Settings](/account/preferences/) Close # Tesla Was Just Dealt Another Huge Blow by [Ben Geier / Fortune](/author/fortune/) ## Ben Geier / Fortune Update your preferences in [Account Settings](/account/preferences/) Close May 18, 2015 7:28 PM CUT  Elon Musk, co-founder and chief executive officer of Tesla Motors Inc., speaks during the unveiling of the company's "Powerwall' at an event in Hawthorne, California, U.S., on Thursday, April 30, 2015\. Musk unveiled a suite of batteries to store electricity for homes, businesses and utilities, saying a greener power grid furthers the company's mission to provide pollution-free energy. Photographer: Tim Rue/Bloomberg via Getty Images Elon Musk, co-founder and chief executive officer of Tesla Motors Inc., speaks during the unveiling of the company's "Powerwall' at an event in Hawthorne, California, U.S., on Thursday, April 30, 2015\. Musk unveiled a suite of batteries to store electricity for homes, businesses and utilities, saying a greener power grid furthers the company's mission to provide pollution-free energy. Photographer: Tim Rue/Bloomberg via Getty ImagesBloomberg—Bloomberg via Getty Images by [Ben Geier / Fortune](/author/fortune/) ## Ben Geier / Fortune Update your preferences in [Account Settings](/account/preferences/) Close May 18, 2015 7:28 PM CUT Another bit of bad news for Tesla: Texas will not be allowing the auto manufacturer to sell direct to consumers after legislation failed to pass the state legislature despite support from both parties. The deadline passed for the bill late last week, [AutoBlog](http://www.autoblog.com/2015/05/18/tesla-direct-sales-bill-texas-house-killed/ "undefined") reports. It would have allowed Tesla stores in Texas to actually help customers get into an electric car. Currently, the law doesn’t allow pricing displays or test drives, a rule designed to protect franchise dealers. Unlike most car manufacturers, Tesla sells its cars directly to consumers rather than through dealerships. Democratic state Rep. Senfronia Thompson criticized the company by saying that “it would have been wiser if Mr. Tesla had sat down with the car dealers first.” But there is no “Mr. Tesla” involved in the company, which is named after the late inventor Nikola Tesla and is founded and run by Elon Musk. 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