Print 93 comment(s) - last by senecarr.. on Mar 14 at 8:11 PM

Tesla said Governor Christie’s administration has "gone back on its word"

Tesla Motors has been trying to push its direct sales model into various U.S. states, and while it saw a bit of success with New Jersey, a new state rule could destroy Tesla's plans. 

According to Tesla, New Jersey Gov. Chris Christie’s administration recently proposed a new rule that requires that a person have a franchise agreement with an auto manufacturer in order to be granted a license to sell. 

This is a problem for Tesla, considering it already operates two stores in New Jersey and had plans to open more. It's possible that Tesla could have to stop selling its all-electric Model S and any future vehicles in these stores and instead use them as showrooms where customers can look, but not buy. 

"Unfortunately, Monday we received news that Governor Christie’s administration has gone back on its word to delay a proposed anti-Tesla regulation so that the matter could be handled through a fair process in the Legislature," said Tesla in a statement. "The Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey. This new rule, if adopted, would curtail Tesla’s sales operations and jeopardize our existing retail licenses in the state.

"Having previously issued two dealer licenses to Tesla, this regulation would be a complete reversal to the long standing position of NJMVC on Tesla’s stores. Indeed, the Administration and the NJMVC are thwarting the Legislature and going beyond their authority to implement the state’s laws at the behest of a special interest group looking to protect its monopoly at the expense of New Jersey consumers. This is an affront to the very concept of a free market."

Tesla CEO Elon Musk and President Barack Obama

Tesla has been in a battle with many states regarding its direct sales model. The issue is that auto dealerships feel Tesla's new sales model threatens their network, which many other automakers rely on. If other automakers were to follow Tesla's example, it would put the dealerships in a bad spot. The National Automobile Dealers Association (NADA) said that dealerships are necessary to ensure competitive prices for customers, and that it will continue to defend franchise and consumer laws in the states.
Tesla CEO Elon Musk, on the other hand, believes that auto dealerships don't do a very good job at selling specialty cars like Tesla's high-end electric vehicles (Roadster, Model S). Hence, he's looking to run his own Tesla stores around the U.S. where he believes his cars will get a fair shot at being sold. 
However, the problem for Tesla is that auto dealerships have much deeper pockets -- meaning that they have a lot more to spend on lobbying, and lawmakers will surely side with them when money is involved. 
In fact, auto dealers spent $86.8 million on state election races across the U.S. between 2003 and 2012. They also spent $53.7 million on federal campaigns. Tesla, on the other hand, has spent less than $500,000 on both state and federal politics. 
Tesla has gone head-to-head with many other states that are protecting auto dealerships, such as Massachusetts, Ohio and New York. 
Just last month, it was reported that Ohio Sen. Tom Patton (R-Strongsville) backed a new bill called Senate Bill 260, which aims to prevent Tesla and any other automaker from "applying for a license to sell or lease new or used motor vehicles at retail." Tesla opened its own stores in both Cincinnati and Columbus, as Ohio's current laws allow the automaker to do so. However, Senate Bill 260 would certainly put a stop to it, unless existing stores opened before the bill are deemed safe. 
What's interesting is that Patton received at least $42,825 between 2002 and 2013 from state and national auto dealership owners, employees, and political action committees. 

Source: Tesla Motors

Comments     Threshold

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

The Northeast is archaic...
By MrBlastman on 3/11/2014 12:16:17 PM , Rating: 4
They still have gas stations that require you to pay an attendant, for crying out loud. And they like to give the South crap...

RE: The Northeast is archaic...
By Brandon Hill on 3/11/2014 12:45:43 PM , Rating: 2
Yeah, I've NEVER understood that. You can't even pump your own gas/diesel? What kind of stupid, effed up idea is that? It's like saying that your residents are so dumb that they can't unscrew a cap and stick a nozzle in a hole.

It just blows my mind. Next thing you know, they'll have someone standing behind you at the urinal to help you shake.

RE: The Northeast is archaic...
By GotThumbs on 3/11/2014 12:56:47 PM , Rating: 2
Forced job creation for low skilled labor.

It's that simple.

RE: The Northeast is archaic...
By Motoman on 3/11/2014 2:39:49 PM , Rating: 2
Not so much that as it is a kneejerk reaction to "Save" jobs that had clearly become obsolete.

The nephew of someone important was gonna lose his job at the gas station...

RE: The Northeast is archaic...
By Argon18 on 3/11/2014 3:49:49 PM , Rating: 2
"You can't even pump your own gas/ diesel ? "

Actually yes you can pump your own diesel fuel in NJ. And kerosene. And jet fuel.

It's only gasoline that requires a gas station engineer to pump it for you. You know, because it's far to complicated and dangerous for the average person to manage.

RE: The Northeast is archaic...
By superflex on 3/11/2014 1:26:05 PM , Rating: 2
I'm pretty sure Oregon has that crazy law as well.
Because pumping gas is hard.

RE: The Northeast is archaic...
By XabanakFanatik on 3/11/2014 3:07:20 PM , Rating: 2
The law isn't really that crazy, I still pay lower prices for gas than anyone in California. It saves me the trouble of having to get out in the freezing cold in the winter or the burning hot in the summer. It's really quite convenient.

RE: The Northeast is archaic...
By MrBlastman on 3/11/2014 3:29:44 PM , Rating: 2

It saves me the trouble of having to get out in the freezing cold in the winter or the burning hot in the summer.

Your burning hot in the summer is a springtime picnic here. I always hear Northerners complain about their summers and then I visit where they live during the summer. I laugh myself all the way home. :)

RE: The Northeast is archaic...
By Rukkian on 3/11/2014 3:36:28 PM , Rating: 2
So because you are lazy means it should be a law to make everybody else be lazy? If there are enough of you around willing to pay extra for it (which in the end you are one way or another), then stations will do it. I see no reason to have a law requiring it.

RE: The Northeast is archaic...
By Argon18 on 3/11/2014 3:53:19 PM , Rating: 1
"The law isn't really that crazy, I still pay lower prices for gas than anyone in California. It saves me the trouble of having to get out in the freezing cold in the winter or the burning hot in the summer. It's really quite convenient. "

I've filled up twice in my live in NJ. Both times, the incompetent schmuck working the pumps didn't screw my gas cap back on. Five minutes later I'm driving down the freeway, and smell a strong gasoline smell. I pull over and find the cap loose and rattling around with gasoline spewed all down the side of my car.

Yeah, real convenient. I hope to never enter that horrid state again.

RE: The Northeast is archaic...
By Flunk on 3/11/14, Rating: 0
By LRonaldHubbs on 3/12/2014 6:36:19 AM , Rating: 2
Being from the northeast, I have to point out that full-service gas stations are only mandatory by law in NJ. They do exist elsewhere but are not the norm. I've seen them around in CT and MA, but definitely less common there than self-service stations in those states. I did accidentally stop at a full-service station in upstate NY once. The guy came out after I'd started pumping and asked if we had full-service in PA (he noticed my out-of-state plate); I told him it was very uncommon. In VT I have never seen a full service station anywhere.

RE: The Northeast is archaic...
By pandemonium on 3/14/2014 2:20:26 AM , Rating: 2
Hey now, I live in the South and we don't have attendants required to pump gasoline. Yet, I see tons of tank covers open, plugs dangling, and even a few nozzles/hoses dragging along with the car because the person was too stupid to realize it.

Maybe we need some forced attendants?

I also can't comprehend people that only pay cash at the register for filling up with only a certain [small] amount of gasoline. As if they're not going to be driving this car that long? Fill the tank, everytime, and use your card at the pump. If you can't tell what a shady card reader that doesn't belong there looks like, then you probably shouldn't be in this magical world that we live in.

"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Yahoo Hacked - Change Your Passwords and Security Info ASAP!
September 23, 2016, 5:45 AM
A is for Apples
September 23, 2016, 5:32 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

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