Tesla CEO Elon Musk has suffered his second straight setback in wanting to sell his electric cars directly to consumers.

In what he believed could have been the brand’s second largest sales market, the state of Texas has ruled against the American automaker in allowing it to sell directly in Texas. Bills that could have created an exemption for Tesla to allow factory-owned dealerships failed to make it to the floor of the Texas House or Senate for voting.

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The Legislature’s regular session ended on May 27, and it won’t meet again in a generation session until 2015. So for now, Tesla’s retail locations in Houston and Austin are prohibited from sales activities. Late April, Tesla lost the battle in Virginia and is currently fighting legislation in North Carolina so that it can use the Internet to sell its vehicles.

[Source: Automotive News]

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By Jason Siu