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Auto dealers are backing the bills in an attempt to uphold current sales models

Tesla Motors may see its stores banned in New York thanks to a pair of bills that look to protect auto dealers. 

Tesla has its own “Tesla Stores”, which act as showrooms for customers. There, they can see the models and even test drive them before making a purchase online from the Tesla website. Tesla does this as opposed to selling its vehicles to auto dealerships

But a new pair of bills, referred to as A07844 in the Assembly and S05725, may put an end to that in the state of New York. The bills would make it illegal to license -- or even renew licenses -- for all Tesla Stores within New York state borders.

In addition to a ban on renewing licenses for existing Tesla sites, the bills also make it illegal to license any future stores; amends New York's vehicle and traffic laws regarding "unfair practices by franchisors," and prevents New York from issuing/renewing the registration of any car dealer where a manufacturer holds a controlling interest (unless that certificate was issued before July 1, 2006).

The bills were submitted just before the New York Legislature adjourned for the summer. This means that they will sit in the New York State Assembly until January 2014 when it returns. No decisions were made regarding the bills before it adjourned.

As you can probably guess, Tesla isn't too happy about this. The electric automaker issued a statement last week regarding the bills:

The bottom line for New York consumers and New York suppliers is that if this bill passes, special interests in Albany will once again have gotten their way while robbing New Yorkers of choices in the marketplace, and Tesla will be put out of business in New York. The result would be that all of Tesla’s New York employees will lose their jobs.  It means that New York-based suppliers to Tesla will lose business and New York consumers cannot buy the most advanced electric car in the world today. Banning Tesla from selling its vehicles is also a step in the wrong direction for reducing carbon vehicle emissions and the green environmental movement in New York.  With the State of New York pushing so hard to lead green innovation supporting entire agencies for energy efficiency like NYSERDA, it is absolutely defies logic to ban Tesla from selling electric cars in New York.

From the beginning, Tesla’s goal has been to catalyze the market for electric vehicles and selling through intermediaries at this stage of the company will not work.  For Auto Dealer Associations to claim that restricting competition is in the best interests of the public is wrong and defies obvious common sense.  If we are kept out of New York, it forestalls progress and defeats innovation.

Tesla has created jobs in New York at both its stores and service centers and the sales of its vehicles go into supporting the local economy. Tesla remains committed to bringing electric vehicle technology and its customer focused sales and ownership experience to New York consumers, while complying with all local and state laws.

Back in April of this year, Tesla CEO Elon Musk openly fought for a Texas bill that would cut out the use of auto dealerships. The bill -- House Bill 3351 -- would allow distributors and manufacturers of electric vehicles (EVs) only to sell directly to customers without the use of dealerships. The bill was filed by Rep. Eddie Rodriguez (D-Austin). 

Musk even said that if the fight for the Texas bill came down to a federal matter, he would either lobby Congress to pass legislation for the direct sales of EVs made by startup companies like Tesla (and tie it to an energy or transportation bill) or file a federal lawsuit to fight the state restrictions as unconstitutional violations of interstate commerce.

Musk is open to a dealership model at some point when sales increase, since dealerships do promote competition and keep prices down. 

Source: Green Car Reports

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By Dukeajuke on 6/24/2013 9:57:35 AM , Rating: 5
I can't believe that something as crazy as this could even be considered as a candidate for law in any state. Special interest again rules the day in government. Tesla should put out an ad that includes the names of all the NY politicians who support this bill..

RE: Unbelievable
By Zero_0 on 6/24/13, Rating: -1
RE: Unbelievable
By rudolphna on 6/24/2013 11:30:18 AM , Rating: 2
Um, shut up. I live in Upstate NY and that is far from the reality here. Most areas of NY are pretty moderate and even conservative/republican. (The Saratoga Area for example, where I live).

RE: Unbelievable
By Omega215D on 6/24/2013 12:08:14 PM , Rating: 4
Yes, as someone born and raised in NYC most of the nutjobs come from NYC but as of late a lot of these NYC dwellers usually from flyover states and suburbia where they want people to conform to their way of life.

As for the auto dealers... politicians up for sale as usual.

RE: Unbelievable
By KCjoker on 6/24/2013 6:06:56 PM , Rating: 2
Really? When's the last time NY went for the Repub candidates. And don't say it's because of bad Repub's running for office because Rangel and many other horrible Dem candidates continue to get voted in.

RE: Unbelievable
By Samus on 6/25/2013 2:12:50 AM , Rating: 2
Did you ever notice all the big cities are liberal democrats? Even in Texas? Take a guess why that is...

The only "liberal" place in NY is the NYC area. Go to Albany or upstate NY and things change considerably. Much like Chicago. Enter just about any suburb of the city, and it's Fox News in every living room.

But that isn't to say the fat cats on wall street are liberal. Quite the opposite actually. Most investors favor republicans because they value free market and deregulation. Obviously Clinton was a huge exception in completely deregulating banks in the late 90's, but you can guess who put that bill on his desk.

RE: Unbelievable
By lolmuly on 6/24/2013 10:30:57 AM , Rating: 2
I usually find the ayn rand view a bit naive, but in this case... just let that man sell his steel!

RE: Unbelievable
By GotThumbs on 6/24/2013 6:46:47 PM , Rating: 3
Ever heard of Tucker? He got squeezed by US Auto makers in the 1940's. Google it if you haven't. There's a movie on it as well.

Ayn Rand fears may seem far fetched, but it's getting closer to becoming a reality if you look at the fact that she wrote Atlas Shrugged in the late 1950's.

If you remain won't see it happen until it's coming into your own home.

RE: Unbelievable
By lolmuly on 6/25/2013 11:35:23 AM , Rating: 2
Ayn Rand's fears are completely valid, it's her solutions that I find naive.

The big flaw in her capitalist utopia is business ethics. Take a look at the kieretsu system in japan. Imagine ditching a big client and bankrupting your company. If that client refuses to pay on time, breaks its obligations, and pays you barely above cost for your product, what can you do? You can't sue, you can't expand, you can't innovate. This isn't just a japanese phenomenon, it happens all the time on large and small scales, businesses will always jump at the opportunity to enslave one another.

Now there's a fair argument to be made that allowing your business to be put in that situation should be punished, but why should doing business with a company larger than your own be so suicidally risky? Take away the regulations, take away the protections, and very few companies will move up or down the chain.

Should somebody ever be forbidden from selling to whomever they wish? Never, but businesses who employ these practices should be liable (within demonstratable reason) for the destruction of a business they've chosen to engage with.

RE: Unbelievable
By Schadenfroh on 6/24/2013 10:58:40 AM , Rating: 2
This happens more often than you think, why do you think that there is a lack of self-service gas stations in New Jersey?

RE: Unbelievable
By karimtemple on 6/24/2013 11:11:27 AM , Rating: 2
This is a pretty bad example lol. A plurality of New Jersey residents prefer full service gas, and anyone who does complain about it isn't doing so because they get bad service or it'll get them cheaper gas.

RE: Unbelievable
By Brandon Hill on 6/24/2013 11:26:21 AM , Rating: 2
This I just don't get. Why the hell do I need someone to pump my gas?

RE: Unbelievable
By rudolphna on 6/24/2013 11:31:39 AM , Rating: 2
It's an old law from the 50s/60s when NJ was worried that people would blow themselves up while pumping gas and required people to have a "transfer of hazardous liquid" license. The law hasn't gone anywhere, because people in NJ prefer to sit in their car while someone pumps the gas for them.

RE: Unbelievable
By Brandon Hill on 6/24/2013 11:40:49 AM , Rating: 2
To each his own I guess. They've been conditioned to be waited on hand and foot ;)

Question, do you have to tip the gas attendants?

RE: Unbelievable
By stm1185 on 6/24/2013 11:59:13 AM , Rating: 3
Yes, sadly the people of New Jersey are too stupid to be able to handle putting something in a hole, squeezing the handle until it stops, then taking it out. Their government had to step in and make sure that super dangerous task was accomplished by a professional.

RE: Unbelievable
By Omega215D on 6/24/2013 12:09:33 PM , Rating: 2
well idiot drivers do have the tendency to drive off with the gas nozzle still connected to the tank intake.

RE: Unbelievable
By Pneumothorax on 6/24/2013 1:59:32 PM , Rating: 3
By stm1185 on 6/24/2013 11:59:13 AM , Rating: 3
Yes, sadly the people of New Jersey are too stupid to be able to handle putting something in a hole, squeezing the handle until it stops, then taking it out. Their government had to step in and make sure that super dangerous task was accomplished by a professional.

Last time I checked NJ doesn't have a monopoly on welfare/teenage pregnancies...

RE: Unbelievable
By stm1185 on 6/24/2013 7:07:32 PM , Rating: 2
Well maybe they can give the gas station attendants overtime as Condom fitters.

RE: Unbelievable
By Lord 666 on 6/24/2013 12:28:38 PM , Rating: 2
It works out great; provides employment while not getting stinky... especially from the diesel pump.

No, you don't have to tip.

RE: Unbelievable
By Motoman on 6/24/2013 12:18:05 PM , Rating: 2
On the rare occasion that I accidentally pull into a full-service gas station, I'm basically like "get the f%ck away from my car."

And then I never go back.

RE: Unbelievable
By GotThumbs on 6/24/2013 6:53:33 PM , Rating: 2
Of course to reduce the number of unemployed. Lets be honest....pumping gas does not even take a HS diploma, but if your state government pass a law mandating that you can't pump you own gas......that's government control 101.

Atlas Shrugged....Written in 1957 by a Russian immigrant who saw first hand how poorly government control over commerce was. Read the book or watch the movies.

RE: Unbelievable
By nafhan on 6/24/2013 12:34:52 PM , Rating: 2
I would prefer full service gas if it was free...
"Do you like full service?" And "Do you like paying for full service?" are two very different questions that I would imagine most people would answer: yes and no.

RE: Unbelievable
By GotThumbs on 6/24/2013 6:58:46 PM , Rating: 2
Nope. I prefer to do it myself. That way I know no one will scratch my vehicle or put the wrong fuel in my diesel truck or god knows what else could happen.

There are too many idiots out there to blindly trust IMO. Overall, I"m an optimist, but with realist tendencies.

Best wishes,

RE: Unbelievable
By Mitch101 on 6/24/2013 11:18:47 AM , Rating: 2
But then how will some of those crooks get my credit card information if they dont leave my credit card fully exposed to people behind me when he leaves it in the pump hanging out for them take a picture of it? Think about the low level crooks first instead of the high level ones. How will they feed thier families at the beach when your at work. So Insensitive.

RE: Unbelievable
By Makaveli on 6/24/2013 12:30:55 PM , Rating: 2
Haha I use to work at a gas station back in the day and saw that first hand by co workers. The one guy was from europe on a work visa I swear he cleared like $5000 in a month double swiping people's credit cards. It didn't help when the driver was stay at home mom's could barely drive their husband second jag to the station they would never see an extra $20 on the gold visa card. You do that to enough people in a week you just double your salary.

If you are going to go full service always pay cash I don't care where you are!!!!

RE: Unbelievable
By dgingerich on 6/24/2013 11:37:19 AM , Rating: 2
That's New York for you: can't compete, so they use the government to keep others out. "Oh, please, mr. government, we don't want to bother with taking care of ourselves, so take care of us!"

RE: Unbelievable
By Motoman on 6/24/2013 11:56:09 AM , Rating: 3
It's a horrible abuse of the market. Pure political BS. There is *no* benefit to the consumer by requiring car sales go through a 3rd party intermediary between the manufacturer and the consumer. If there was, it would be required for all goods - not just cars.

Nothing but good-old-boyism and the corruption that is lobbying.

Outlaw lobbying. Let Tesla sell their cars however they want. And stop being d-bags in general.

RE: Unbelievable
By Shig on 6/24/2013 4:49:14 PM , Rating: 2
Everyone shouldn't really worry. Tesla Motors has fans that are similar to Apple's fans. Except when Tesla fans say the model S is *multiple* times better than the next closest competitor (EV tech wise), it's not an exaggeration.

If anything this will only make cars sell faster in NY, the state will say you can't buy it, and if you already wanted the car you're going to get it some how anyways. Remember most people buying the Model S atm know what they're doing with finance and laws of this nature or they have friends that do.

Plus the fact that this is an issue in such a big state means this will probably end up in the supreme court, which was inevitable.

RE: Unbelievable
By Shig on 6/24/2013 4:50:17 PM , Rating: 2
As an added tid bit, Tesla Motors is now worth more than Fiat (lol)

RE: Unbelievable
By Mr Perfect on 6/24/2013 7:20:22 PM , Rating: 2
I'd actually love to see the current car purchasing model change, the dealers and sales people are generally snakes.

RE: Unbelievable
By marvdmartian on 6/25/2013 7:44:28 AM , Rating: 2
They should also use the Freedom of Information Act, to find out who is contributing to the politicians who introduce these bills, and see if there's a conflicting interest involved (alsmost certainly so).

If so, put out ads to the public, explaining who is financing the politicians, and what interest they would have in the proposed law. Hopefully, a grassroots campaign would then erupt against the bill, and squash it.

Tesla should also line the state borders with their stores, so New Yorkers can still find one within a relatively short driving distance. Maybe one store each, in Ohio, Pennsylvania, Connecticut, New Jersey, Massachusetts and Vermont?

RE: Unbelievable
By vFunct on 6/25/2013 8:52:30 AM , Rating: 2
Conservatives & Republicans are such corrupt people.

They need to be banned.

New York State is full of corrupt conservative lawmakers in Upstate & Western NY.

We need to ban them and replace them with liberals, since conservatives are so worthless.

Might as well arrest all these conservatives and send them to jail.

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