Thursday, March 13, 2014

New Jersey Becomes Third State To Ban Tesla’s Direct Sales Model

Today the New Jersey Motor Vehicle Commission passed a rule that will end Tesla’s direct sales of cars to consumers. Tesla, a manufacturer of all-electric cars, does not lean on dealerships to sell its vehicles as other car companies do.

The rule goes into effect in April.

New Jersey is the third state to ban the practice of selling cars directly to consumers, joining Arizona and Texas in preventing their residents from easily buying a more environmentally friendly ride. The New Jersey Coalition of Automotive Retailers was in favor of the rule change, unsurprisingly.

Tesla is furious, claiming in a blog post released today — in advance of the meeting in which the rule change was enacted (which Tesla was informed of yesterday) — that Governor Chris Christie’s administration had “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.”

The company also alleged that New Jersey had been sitting on the “renewal of [its] current dealer licenses without indication of the cause of the delay.” Given that delay, and the quick change in the wind from a legislative discussion to a squashing of its model, it appears that Tesla has just run face-first into New Jersey politics.

Full article: http://techcrunch.co … -direct-sales-model/



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