Tesla Appealing NJ Direct Sales Ban Ruling
With the Ides of April fast-approaching before direct sales come to an end, Tesla filed an appeal with the New Jersey Superior Court asking to overturn a government ruling that banned the automaker from directly selling vehicles to consumers in its two New Jersey stores.
Automotive News reports Tesla proclaimed the action by the New Jersey Motor Vehicle Commission is not legal and harms consumers in the state:
As the [Motor Vehicle Commission] itself recognized when it licensed two Tesla locations in 2012, New Jersey law was clearly written to prevent car manufacturers from exploiting their greater market power to compete unfairly against dealership franchises that sell their cars, something that simply doesn’t apply to Tesla because it has no dealership franchises.
In response, New Jersey Coalition of Automotive Retailers president Jim Appleton felt confident that “the courts will recognize the compelling state interest in regulating the sale and distribution of new motor vehicles,” and that Tesla would fail to overturn the ruling. He added that NJCAR wasn’t out to push the EV automaker out of the state, but only wanted Tesla to play by the same rules as those in the state’s franchise dealer network.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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Isn't this a moot point? What prevents NJ residents from crossing the state line into NY, PA or CT and purchasing a Tesla there?
Why can't Tesla beat the restriction against factory stores by simply saying that no "selling" takes place there? Call them something completely non-retail related, like "discovery centers" or "display exhibit", not "showroom" because of its long connection to traditional dealers. The First Amendment says I can open a storefront and tell you all about my old bathtub if I want. If no offer to sell is made it's not selling. The purchase process is done electronically with a location where it's legal.
Cheap shot of the day: I feel like Tesla would have no problem if Chris Christie could fit into one.
A republican governor that is imposing job-killing regulations? Like in Texas and Arizona? States that are open for business? Big believers in the free market? How can that be? Oh right, big Republican car dealer campaign donors trumps ideology. http://www.cdl4sure.com/blog/dealership-vs-direct-sale-cars-in-new-jersey/