Tesla Loses Out in New Jersey's Vote for Direct Auto Sales Ban
March 12, 2014 12:44 PM
comment(s) - last by
Tesla will have to stop selling its cars directly in the state starting April 1
called New Jersey out
yesterday for introducing a new rule that would block the automaker's ability to sell electric vehicles directly to customers, but it didn't seem to do much good as the state went ahead and voted in favor of it.
, the New Jersey Motor Vehicle Commission voted in favor of the ban of direct auto sales in the state on Tuesday. This means that Tesla must stop selling its electric vehicles directly to customers in the state beginning on April 1, 2014.
Tesla already operates two stores in New Jersey, and had plans to open more before this new rule. It's possible that Tesla could use them as showrooms now, where customers can look at the Model S, but must go buy them from dealerships or online.
New Jersey is now the third state to ban Tesla's direct sales model. Arizona and Texas were the first two states to give Tesla the boot.
Tesla CEO Elon Musk
New Jersey Gov. Chris Christie’s administration proposed the new rule earlier this week, which requires a person to have a franchise agreement with an auto manufacturer in order to be granted a license to sell.
Following the announcement of that rule, Tesla
went to its website
to make its opposition known.
"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."
Tesla CEO Elon Musk has said in the past that he'd be willing to take the auto dealership battle to a federal level if needed.
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RE: Yet Again
3/12/2014 1:27:50 PM
And for the record I tend to agree with most Republican party policies. This though is counter to the general Republican idea of encouraging businesses to compete with each other, and the may the best company win. This is far more a matter of using government regulations to force a particular business model.
RE: Yet Again
3/12/2014 1:33:28 PM
It's just a bunch of dealers not wanting to lose their millions. Come on, they've milked the American public for decades under the pretense that they are actually providing competition. That was true back in the day when every brand was not available in every city. Today, there's no need for dealers and they are fighting teeth and nail to hold onto their scam of a middleman business.
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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