Marc Carter

Governor Christie's Administration Bans Tesla's Direct-Sales Model in New Jersey

by , 03/12/14

Tesla, Tesla Model S, tesla sales, electric car, New Jersey, Governor Christie, green transportation, green car, Tesla sales ban, electric motor, Elon Musk

Unfortunately we have a bit of bad news for Tesla Motors today as New Jersey joins a handful of states in the U.S. that are barring Tesla’s direct-sales model, making it illegal for Tesla to sell its vehicles directly to consumers. A new proposal will now make it impossible for Tesla to sell its electric vehicles in the state, which Tesla says is “an affront to the very concept of a free market.”

Tesla, Tesla Model S, tesla sales, electric car, New Jersey, Governor Christie, green transportation, green car, Tesla sales ban, electric motor, Elon Musk

The New Jersey Motor Vehicle Commission has responded to a request by the New Jersey Coalition of Automotive Retailers to tighten its regulations, which means that Tesla would only be able to sell its vehicles through a franchise. Up until now, Tesla had been pushing for the issue to be debated before the state legislature, since Tesla first started selling cars in New Jersey just over a year ago.

Related: Tesla’s Sales Surge at the End of 2013 with Highest Sales Ever in the Fourth Quarter

Tesla maintains that it is necessary to introduce their own vehicles to the market because electric cars are still relatively new technology and it is important that consumers are properly educated about the benefits of going electric. In response to the proposal that will block Tesla’s sales in New Jersey starting on April 1, 2014, Tesla criticized Governor Christie’s administration for pushing the legislation through at the last minute.

Governor Christie’s administration responded by stating that it does not find it appropriate to change the way that cars are sold in New Jersey without legislation and continues that Tesla was aware of the administration’s position from the beginning. New Jersey joins Arizona, Texas, Colorado and Virginia, all of which have similar bans on Tesla’s direct sales approach.

+ Tesla Motors

Related: Consumer Reports Says the Tesla Model S is the Best Overall Car You Can Buy

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5 Comments

  1. sammael March 16, 2014 at 11:57 am

    @atozglobal

    With Tesla sales contract if you have a serious issue, you are given a loaner Tesla S, and your car is taken to Tesla for repairs. By customer reports response is faster, better and more satisfactory then traditional.
    Consumers are paying directly to Tesla exact price of the car. Tesla couldn’t sell cars to resellers at any less. Which means any money reseller took in would come out of customer’s pocket.
    If state has sales tax, then it gets calculated in your price when you buy the car. If it doesn’t it doesn’t.
    Constitutionally they should be able to sell their own cars in a new way if they want to. That’s what free market is all about.
    And since customers are far more satisfied with Tesla’s sales model then traditional sales model, and have more positive feedback, I’m going to say that its a positive system for the customers.

  2. atozglobal March 14, 2014 at 8:34 am

    If you eliminate the middleman dealer where will you service your car when you have a serious warranty problem? Has this all been worked out? Also how much money will the consumer actually save if Tesla cuts out the middle man? A lot of things have to be thought through before any laws are passed.What about sales tax? How have the other states handled it? What is constitutional either way? There is a great deal of money at stake either way. Is this really good for the consumer in the long run?

  3. msyin March 13, 2014 at 4:10 pm

    Lots of money is at stake over this issue but there are places where Tesla is welcomed, and I will happily go to another state to pick up my car if necessary.

  4. wildburst March 12, 2014 at 2:58 pm

    so should Nike and Apple be banned from selling their own goods as well?

  5. Vincent O'flynn March 12, 2014 at 1:24 pm

    Just think of “Preston Tucker” and all the crap he went through!
    Being a maverick can have a high price o_O

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