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Print 55 comment(s) - last by Reclaimer77.. on Mar 19 at 12:11 PM

Elon Musk threw mafia and Bridgegate references out there

Tesla Motors CEO Elon Musk is clearly a bit sore about New Jersey's recent decision to ban direct sales of the Model S, as he accuses the new rule of being a "backroom deal" between New Jersey Gov. Chris Christie's administration and auto dealers.
 
Musk wrote his frustrations in a blog post titled, "To the People of New Jersey" on the Tesla Motors website. Musk said Christie's "protection" of consumers is similar to that of the mafia, and even brought up the Bridgegate scandal. 
 
“The rationale given for the regulation change that requires auto companies to sell through dealers is that it ensures ‘consumer protection’. If you believe this, Gov. Christie has a bridge closure he wants to sell you!” wrote Musk. 
 
“Unless they are referring to the mafia version of ‘protection’, this is obviously untrue. As anyone who has been through the conventional auto dealer purchase process knows, consumer protection is pretty much the furthest thing from the typical car dealer’s mind."
 
Musk went on to say that New Jersey's Tesla stores would become galleries after April 1, where customers can come look at the Model S and ask questions, but cannot discuss prices or purchase the cars.
 
Earlier this month, New Jersey Gov. Chris Christie’s administration proposed the new rule, which requires a person to have a franchise agreement with an auto manufacturer in order to be granted a license to sell. 
 
Then, last week, the New Jersey Motor Vehicle Commission voted in favor of the ban of direct auto sales. Tesla already operates two stores in New Jersey, and had plans to open more before this new rule. 
 

Elon Musk has his game face on. [SOURCE: Business Insider]

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 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. 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. 
 
This type of lobbying seemed to work in Ohio recently, as Ohio Sen. Tom Patton (R-Strongsville) came under the spotlight for backing a 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." 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.
 
Musk seems to be getting fed up with the auto dealer fight, and aimed to hit Christie right where it hurt after the New Jersey ban.
 
For the New Jersey citizens who are bummed out about the recent ban, Musk wrote that Tesla's cars could still be purchased in the Manhattan store just over the river in Chelsea or the King of Prussia store near Philadelphia.

Source: Tesla Motors



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RE: ridiculous
By SublimeSimplicity on 3/17/2014 1:26:19 PM , Rating: 5
quote:
Perhaps someone can enlighten me as to how these rules are for *my* protection?

These rules help people realize they should move out of NJ. I think that's a cause we can all get behind.


RE: ridiculous
By MrBlastman on 3/17/2014 1:54:32 PM , Rating: 2
As long as they don't move to my state, I'm okay with that. It takes a person to vote another person into office.


RE: ridiculous
By hpglow on 3/17/2014 2:02:11 PM , Rating: 2
Voting is a joke we get to pick from a list of corrupt dbags. No one who has enough money to get into a large public office is anything other than a corporate or special interest sponsored clown.


RE: ridiculous
By MrBlastman on 3/17/2014 2:29:17 PM , Rating: 3
Not always. Some of these guys are self-made with their own private interests (or ties back home) that love to slap on pork barrel spending clauses.

Impose term limits! Remove their ability to vote on their own pay! Let the president/public vote them pay raises or decreases! (for the Congress and likewise the congress/public for the president).


RE: ridiculous
By Reclaimer77 on 3/17/2014 4:11:06 PM , Rating: 5
quote:
As long as they don't move to my state


Amen.

I think they should stay in Jersey, that way the nuclear option is still on the table. If they spread out, we'll never get rid of them all.


RE: ridiculous
By room200 on 3/18/2014 8:37:47 AM , Rating: 2
Patrick, what are you talking about YOUR state? The only thing you own is video games.


RE: ridiculous
By Mitch101 on 3/17/2014 2:52:06 PM , Rating: 5
People in NJ wont realize how bad NJ is until they don't live there anymore. I love the people in NJ but hate the economy of NJ.

I lived in NJ and there are two main reasons why people dont leave.

1) Family - although I think entire families should leave the state they wont. I got lucky most of mine did.
2) They are so hung up on their pre-tax income it blinds them to their actual net income when all is said and done.

My NJ property taxes went from $6500.00 a year to my NC property taxes of $1500.00 a year. My Car insurance dropped to 1/3 although I have to pay a few hundred in car tax every year so lets say 1/2. NJ has some of the highest car insurance in the country. It also still has TOLL roads even though the roads were supposed to be paid off years ago. What did I have to sacrifice? Nothing except Jose Tejas Mexican restaurant. Miss that place.

My house is about 1000 sq ft larger than my home in NJ and my property is almost doubled. I don't live in the middle of nowhere either I live on a golf course and have a dock to a very large lake. Trump golf course is right down the road from me. A similar home in NJ would cost twice what I paid for mine and mine is brand new it just completed a couple months ago its not a 35 year old home with things that need to be replaced. There are no places in NJ that I don't have where I live now.

I don't make as much as I did in NJ but when all my bills are paid at the end of the month I have more than when I made more living in NJ. I can survive without losing thousands a month on unemployment if necessary in NC. In NJ if I were to be unemployed I would drown in thousands per month of debt.

I dont own a snow shovel either. If it snows it usually lasts till the afternoon we might get one or two days a year where the kids can play in the snow that it lasts longer than a day.


RE: ridiculous
By Reclaimer77 on 3/17/14, Rating: -1
RE: ridiculous
By Reclaimer77 on 3/17/14, Rating: -1
RE: ridiculous
By inighthawki on 3/17/2014 3:48:19 PM , Rating: 3
Pretty uncalled for...


RE: ridiculous
By Reclaimer77 on 3/17/14, Rating: -1
RE: ridiculous
By Samus on 3/18/14, Rating: -1
RE: ridiculous
By Reclaimer77 on 3/18/2014 9:43:14 AM , Rating: 1
I'm genuinely confused. Where did I say that or even make such a comparison?


RE: ridiculous
By FlyBri on 3/18/2014 6:29:30 AM , Rating: 2
I find your comment hilarious considering it makes YOU sound like the asshole.


RE: ridiculous
By Samus on 3/18/2014 2:36:13 AM , Rating: 3
If the cost of living in New York weren't so damn expensive, there wouldn't be a New Jersey.

Because that's practically the only reason people live there.


RE: ridiculous
By FlyBri on 3/18/14, Rating: -1
RE: ridiculous
By Samus on 3/19/2014 2:15:33 AM , Rating: 2
Do you have a constructive argument as to why Jersey is equal or superior to New York in a QoL ranking given cost of living were identical?


RE: ridiculous
By Reclaimer77 on 3/19/14, Rating: 0
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton

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