Print 60 comment(s) - last by LRonaldHubbs.. on Jun 27 at 1:19 PM

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

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

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.

"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki