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Drew Bixby

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Tesla was blocked from selling cars in Texas. Is this a bad sign?

In the book Why Nations Fail, (http://whynationsfail.com/) the authors argue that inclusiveness is what made the US great and extractive-ness is what makes nations like Venezuela fail. Very generally, inclusiveness means everyone has an equal opportunity to compete and the laws support such an environment. In contrast, extractive-ness is an environment where rules, over-regulation, political favors, and financial weight give preference to certain groups over others.

This case with Tesla seems very "extractive"/non-iinclusive by their definition. Is this just isolated or is this a bad sign for the state of things in the US?

In case you are not aware, here is a brief synopsis of the Tesla case:
http://www.autoweek.com/article/20130604/green/130609929

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    Jun 17 2013: It is not the first time in America. PrestonTucker designed a really good car (1948 Tucker Sudan) and the politics of the time prevented him from producing them in the US.
    Tucker was his name: See this: http://en.wikipedia.org/wiki/Tucker:_The_Man_and_His_Dream

    He went to court and told the jurors that Capitalism is harmed by the greed and aggressiveness of huge corporations with political power. He ended up bankrupt and died of a heart attack a few years later.

    North Carolina is also trying to pass a law similar to the one in Texas.
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      Jun 18 2013: Interesting. I had heard of that long ago. Thanks for the contribution!
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      Jun 18 2013: John,
      My recollection is a little different then the movie version you've quoted. It was he SEC took Tucker to court based
      complaints by dealers who paid for dealerships and had not received the cars. As I understand only about 50 cars were built. Major Auto companies were not even aware... ok, really didn't care that there were several new small companies that formed after the war to build cars. Studebaker, Kaiser Fraiser .to name a few. I believe the Fraiser Company also ran afoul of the SEC too. Tucker had some production problems, design and execution of various components. But, he wasn't as bad as the SEC made him out to be.
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        Jun 18 2013: Yes his car was ahead of it's time with disk breaks, etc. Did you ever read the storey about variable speed wind shield wipers?

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