Tesla Gets 15 Day Extension In New Jersey As Legislators Work On Direct Sales Solution

MAR 28 2014 BY JAY COLE 7

On March 11th, in an impromptu meeting that didn’t sit well with the general public, the New Jersey Motor Vehicle Commission upheld a past legal precedent that saw Tesla lose the ability to sell its Model S sedan direct to consumers in the state.

The Issue Of Tesla Selling Direct Now Isn't A Matter Of "If They Can," But "For How Long?"

The Issue Of Tesla Selling Direct Now Isn’t A Matter Of “If They Can,” But “For How Long?”

It turned out that the backlash from that meeting, and subsequent media scrum, put a lot of pressure on both legislators and Governor Christie to act on Tesla’s behalf.

To that end, it now appears that Tesla will indeed continue to be able to sell direct in the Garden State.

There was only one problem.  As part of the March 11th decision, Tesla has to stop selling cars soon – like by next Tueday, April 1st.

Thankfully, the state sees this as unacceptable, and according to Jim Appleton, president of the New Jersey dealer’s trade group (as reported by CNN), the state has pushed back the deadline – at least for a little longer, while the Senate works on legislation to allow Tesla to continue doing business in New Jersey.

Appleton also told CNN that dealers would “support an even longer extension to keep Teslas on sale while the state legislature works on a compromise,” but that at some point “there needs to be a pathway for them to come into compliance with franchise laws.”

Currently there are two pieces of potential legislation being proposed that would allow Tesla to continue to operate in New Jersey – one would be an open license to sell only electric cars indefinitely, while the other would see Tesla able to sell EVs direct until “critical mass” is reached in EV adoption.

That “critical mass” number has been pegged at 4% nationwide by Senator Raymond Lesniak (D-Union).   More information on both proposals can be found here.


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7 Comments on "Tesla Gets 15 Day Extension In New Jersey As Legislators Work On Direct Sales Solution"

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Well…it’s a start. Still not a big fan of NJ politics…seems @ss backwards.

Why not just make it a non-compete? As in, if a brand does not have franchised dealers in the state, they can sell direct. This could, in theory, open the doors to other manufacturers creating new electric brands (such as BMW’s “i” brand)

The best decision is to appeal the Law, simple and easy. It’s an old Law and doesn’t fit in the modern World any more. The major car makers are very dependent on dealers to keep their ICE cars operational and that will remain the same for many years to come and assure dealers a spot in the mix without them having to buy off politicians to remain in business.

This can only mean one thing: Elon Musk and agreed to give NJ organized crime their cut.

Electric cars are too different from traditional cars to force them in a similar retail model. Wouldn’t work as they don’t generate the sort of maintenance revenues that keep franchise dealers funded.

So any permanent solution must allow for the fact that a fundamentally different product should be allowed to develop a retail model that fits it’s particular needs and economics.

Even Appleton’s statement shows what utter bullshit this is. He says that Tesla needs to be in compliance with the franchise laws, but Tesla isn’t a franchiser so exactly why do they apply?

They cut a deal in NY, with Cuomo. Keep the 5 stores they have open, no new stores.