Effective Today, Tesla Motors Can No Longer Sell Electric Vehicles In New Jersey

APR 16 2014 BY ERIC LOVEDAY 33

Recently A Surprise Change In New Jersey Saw Tesla Banned From Selling InFrom The State

Recently A Surprise Change In New Jersey Resulted In Tesla Being Banned From Selling In The State

Tesla Motors’ 15-day extension to sell its electric vehicles in the state of New Jersey comes to an abrupt end today.

The Site of Tesla’s Fight in New Jersey – Image Copyright InsideEVs

The Site of Tesla’s Fight in New Jersey – Image Copyright InsideEVs

Effective at 12:01 AM today (April 16, 2014), Tesla’s two stores in New Jersey (Short Hills and Garden State Plaza) become galleries where Tesla Motors can’t actually sell the Model S.

It’s a shame that New Jersey (and other US states) don’t allow Tesla to operate freely.  Instead, some states favor the archaic dealership model in which Tesla Motors doesn’t follow.

The New Jersey battle was particularly interesting in that, despite public outcry, New Jersey moved forward with its ban on Tesla without allowing public comment first.

Tesla Motors has issued an official statement on the situation in New Jersey.  The automaker states that as of today “our two locations at Short Hills and Garden State Mall will open as galleries.”  Galleries is the term Tesla uses to imply that sales can’t occur within.

From here on out, residents of New Jersey who wish to buy a Tesla Model S will likely cross state lines, or turn to the Internet, to make the purchase.  Obviously, New Jersey loses out in this situation, but that’s often the end result when a state makes the choice to restrict free enterprise.

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33 Comments on "Effective Today, Tesla Motors Can No Longer Sell Electric Vehicles In New Jersey"

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The NJ legislature still doesn’t have this stupid law fixed? Christi already said he would sign it. Why does it take lawyers so long to edit a Word document?

At $700-1000 per hour I’d be moving really, really slow…

As long as they can still buy via the Internet there will not be much impact. In Washington State a majority of Model S cars are purchased exclusively via the Internet.

the lack of editorial integrity on the author’s part is sad. Facts should be reported and emotional nonsense should be eliminated

This is an EV news site that largely caters to EV fans. It is not “the news”.

Huh? It’s not the Washington post nor the Economist. Why can’t insideevs have ’emotional nonsense’ aka an opinion?

Thanks for the vote of support. Emotion shows passion, of which we have a lot here at InsideEVs. Straight news? You’ll find that sleep-inducing stuff elsewhere. Yes, we are real people with real opinions. We present the news and then often venture into the opinion/emotional aspect of a particular story.

Your website is called ‘Inside EVs’ and you are noticably pro ev.

Who would have guessed!?! 😉

So this is NOT a parody site for INSIDE EXTREME VEHICLES? Well, poo, guess I’ll go back to looking at it for the articles.

NJ got a lower rating last week and could use the revenue on out of state buys, but I doubt that it’s material. Tesla failed to $$ engage the legislature.

“From here on out, residents of New Jersey who wish to buy a Tesla Model S will likely cross state lines into New York to make the purchase.”

The above should read:

From here on out, residents of New Jersey who wish to buy a Tesla Model S at a brick and mortar store will likely cross state lines into New York to make the purchase. Otherwise they can order one on the internet in the comfort of their own home.

NPNS! SBF!
Volt#671

Well to some degree these things are ridiculous. The ‘showrooms’ could have a wifi site and just tell the person to pull out their cell phone and use this site. Or loan them a tablet.

So what is the effective change for the prospective Tesla purchaser? How does he or she handle sales tax issues, which I’m SURE NJ won’t forget about since every taxed penney is demanded and accounted for.

Dr. Kenneth Noisewater

IIRC sales tax is paid during registration.

Yes, in the state where the car is registered. If you transfer registries, then you don’t pay sales tax. In Virginia, when you transfer your car’s registry from another state, you owe a pro-rated amount of personal property tax to the local gov’t. And a DMV fee. That’s it, as far as I know. I did not pay any sales tax on my car when I transfered the tags from PA to VA 12 years ago.

Bill,

BEV’s are exempt from sales tax in New Jersey. Furthermore, you don’t pay sales tax in the state where you buy a car; you pay sales tax in the state where you register it. So New Jersey residents who buy a Model S in the Tesla’s NYC store and register it in New Jersey will pay zero sales tax.

http://www.state.nj.us/treasury/taxation/zevnotice.shtml

http://www.recordonline.com/apps/pbcs.dll/article?AID=/20100313/BIZ/

http://www.dmv.org/articles/used-car-taxes-and-fees-for-out-of-state-purchases/

thanks everyone…… Ok so this , along with the continuing “Galleries”, means that this will have little effect then.

Interesting…

oh well, their loss.

shucky darn, there go my plans to move to Jersey.

There is no sales tax on EVs in NJ. Their will not be any tax revenue loss.

I have confidence that New Joysey will straighten this out. It may take them a bit longer than it should, but contrary to what you see on the “news” there are a lot of good people that live in the state.

Tesla does not yet have an issue of finding new customers, and if they do soon, derelict franchise laws will not rank at the top of the reasons’ list.

BMW has their HQ in Jersey and they have the new i3 which is sort of a competitor to the Model S . . . so Jersey may tilt a little to BMW. But ultimately it should be worked out.

How shocking, in a state where back-room deals, kick-backs, and mob related activities, virtual ownership of leading components of some industries, are rampant, that a fresh, apparently plain dealing, new car company gets it’s hopes for a venue to sell it’s cars in NJ fitted for a pair of concrete galoshes and tossed into the East river.
Tesla motors sleeps wit da fishes, at least in NJ.

It would be interesting to see a breakdown of the political parties controlling the states that ban Tesla sales (governor and legislature). I don’t know the answer, but of the states that I know have banned Tesla sales, they seem to be represented by the party that generally considers itself “pro business”.

What has happened is a direct result of their policies and exactly what these morally bankrupt people stand for.

‘Pro business’ was never about being pro business, it was always about close ties between the corrupt in the government and the corrupt in the economic sector.

The higher up and more powerful the corrupt officials, the larger and more powerful the related companies.

Tesla is not as powerful as the combined might of all the other car companies and all the dealer groups.

Hmmm.. no Gigafactory, no sales allowed. $$$ FTW

Here’s a question that I haven’t heard yet…

What is the difference in the pay scale for Tesla employees in “Gallery” states, versus “Showroom” states?

I believe there is no pay difference.

Why don’t we strike a law that says “if you restrict the sale of a good in your state than you can not collect the sales tax for that good”

NJ will loose out on $5,000-$7,000 per TESLA sold into NJ.

Nevermind… no sales tax on EVs…

It’s like that here in Texas. You can view, arrange a test drive (only on show days), and look over all options and accessories at the showroom. You car get delivered a couple of miles away, and pick it up at their depot/repair place. I’d heard there was some weird 48 silence period about your new car as well, but I’m not sure about that part.

Well, New Jersey just revealed how truly CORRUPT it is. I am so glad that I live in the finest Republican Zone within California-which will change as soon as Boxer and Feinstein buy wheelchairs. But New Jersey? Research Franchise Laws, and understand, if New Jersey enforced Franchise Laws as they claim they do, then EVERY BUYER who goes to a franchise sales center to buy a car, must receive a UFDD Disclosure 30 days before buying, and have several days to return the car. Is that what GM is saying they will do in New Jersey? If not, they can’t sell by franchises…because their actions are in violation of their own franchise law. New Jersey is corrupt.